The University of North Carolina-Chapel Hill was billed more than $620,000 over a two-year period for legal services, secretly referred to only as the “Carolina Blue” matter. Now the university faces a public records complaint by a lawyer who says UNC used a multi-step procedure that provides an incomplete picture of services and costs.

Lawyer David McKenzie, who recently sued the school’s Board of Trustees over public meetings law, filed the latest complaint in Orange County on Wednesday.

The legal records, recently obtained by WRAL, included bills for professional fees, court reporting and expenses from the firm of Skadden, Arps, Slate, Meagher & Flom LLP. The “Carolina Blue” matter is related to conference realignment, according to The Athletic, which earlier reported on the bills.

McKenzie alleges the university uses a four-step process to approve and pay the firm, which he calls “an attempt to circumvent” the state’s public records law. Skadden, McKenzie says, uploads a detailed invoice with time entries and descriptions of to a database for UNC to review. Once UNC approves the expenses, Skadden provides a one-page summary of total costs without details. That record is public.

“Defendants have failed to produce complete, itemized Skadden billing records, instead providing misleading invoices that obscure the services rendered,” the 111-page complaint says. “The disclosed records contain vague placeholders, mislabeled charges, and shifting justifications that further erode their credibility. Moreover, UNC’s billing review process ensures that full invoices are never directly received by the University, creating a delicate barrier to public access.”

A university spokesman declined to comment on the lawsuit.

WRAL obtained more than 20 invoices from Skadden to the university for the “Carolina Blue” matter from Dec. 1, 2022 to Nov. 30, 2024.

UNC was not involved in any litigation with the ACC or surrounding conference realignment during the time period.

But ACC members Florida State and Clemson have brought lawsuits against the league as they explore ways to either reduce or remove financial penalties for leaving the league. The ACC has countersued. Florida State brought its lawsuit in December 2023. Clemson filed its in March 2024.

Several members of North Carolina’s Board of Trustees have indicated the school should explore leaving the ACC or else be left behind during an era of conference consolidation.

The university agreed in July to pay $25,000 to cover McKenzie’s expenses, costs and attorney’s fees after he filed a lawsuit over the Board of Trustees’ handling of public meetings. That, too, was related to athletics.

During a May meeting, some board members made several statements indicating they would discuss the athletics budget in closed session and others that indicated they had previously talked about the athletics budget in closed session.

UNC also paid Skadden about $150,000 for an “admissions matter” during the same time period.

Source: wral.com