Supreme Court of North Carolina

Farmer v. Troy Univ.

November 4, 2022

Summary

The court held that Troy University’s sovereign immunity from suit in North Carolina was subject to explicit waiver when the university registered as a nonprofit corporation, obtained authority to conduct business, and engaged in commercial recruiting activities in the state. By accepting North Carolina’s statutory framework, including its sue-and-be-sued provision and equal-treatment requirements for foreign corporations, Troy University consented to suit for those activities. The court therefore reversed the dismissal and remanded for further proceedings.