The city of Wilmington is pushing back against a civil lawsuit filed by its former planning and development zoning administrator.
While acknowledging that a decision to fire Kathryn Thurston had been made before she resigned in December 2025, the city denied violating her constitutional rights, coercing her resignation or denying her due process.
The city, in its response to the lawsuit, argued that its actions were based on legitimate business reasons and Thurston voluntarily resigned before the termination took place.
In a lawsuit filed June 26 in New Hanover County Superior Court, Thurston claims she was coerced into resigning on Dec. 8, 2025, under the threat of immediate termination. The lawsuit claims her “arbitrary and unlawful removal”
was predetermined as part of a government restructuring overseen by City Manager Becky Hawke. The filing also accuses the city of failing to follow its own mandatory disciplinary procedures.
Regarding use of permitting system
The dispute centers on Thurston’s use of New Hanover County’s COAST permitting system while seeking a permit to construct an accessory building at her residence. The city said Thurston entered the system, which she used for city business, and changed the classification on her permit application, prompting a misconduct investigation.
The lawsuit argues the permit application had been classified incorrectly and that Thurston changed the classification so the system more accurately reflected the proposed work. Furthermore, the lawsuit contends she inadvertently selected a function that generated an invoice.
“At no time did Thurston obtain any fee reduction, expedited review, favorable inspection treatment, unavailable approval, confidential business advantage, monetary benefit, or other improper personal gain from her limited interactions with the COAST system regarding her permit application,” the lawsuit says.
According to the lawsuit, Thurston was given an immediate choice: resign on Dec. 8, 2025, or be terminated that day for alleged serious ethical misconduct. Both sides agree she tendered a handwritten resignation note.
The city’s position
The city maintains it had a legitimate basis to fire Thurston had she not resigned.
The city further argued that its actions were lawful and that Thurston is not entitled to damages.
“No action taken by Defendant with respect to Plaintiff was unlawful, reckless, willful, malicious, wanton, fraudulent or outrageous as a matter of law,” the city filing states. “All actions taken by Defendant with respect to Plaintiff were based on a reasonable good faith belief that its actions did not violate the law. Therefore, Plaintiff is not entitled to recover liquidated damages, punitive damages, or other similar damages in this action. In addition, punitive damages are not recoverable against this Defendant as a matter of law.”
In the filing, the city acknowledged 131 resignations and 42 dismissals during Hawke’s first year as city manager. Her first day on the job was June 30, 2025.
The city also admitted to posting a compliance director position that includes some duties previously performed by Thurston.
The city’s 23-page response, filed Aug. 31 and signed by attorney David Woodard, raises 16 legal defenses seeking dismissal of the case.
The lawsuit seeks $25,000 in damages, plus attorney fees.
Thurston worked for the city for approximately 19 years, including 10 years as zoning administrator.
Bob Liepa is the city of Wilmington and public safety reporter for the StarNews. You can reach him at RLiepa@usatodayco.com.
This article originally appeared on Wilmington StarNews: Wilmington says former administrator resigned before planned firing
