Another lawsuit has been filed in the New Hanover Public Schools sex abuse case involving former teacher Michael Kelly.

Per a press release by the Rhine Law Firm,  a lawsuit involving three new John Does has been filed “for injuries they suffered as a result of the sexual abuse of Michael Earl Kelly.”

MICHAEL KELLY

The three new victims were not involved in the first lawsuit that ended in a $5.75 million settlement paid out by the New Hanover School Board’s insurer. That settlement also included requiring the district to enact various reforms.

Per the press release, no trial date has been set yet and a date “is not expected for some time.” The release also says the New Hanover County Public Schools System’s board has not yet been served, but that the general counsel was notified.

“As we told the Board’s attorneys, there are additional victims of Mike Kelly who are still out there and within their statute of limitations,” Mary Charles Amerson, an attorney with The Lea/Schultz Law Firm, P.C., said in the press release.

“The heinous acts of this man knew no bounds and the continued failures of this district allowed this to occur,” added Martin Ramey, an attorney with the Rhine Law Firm, P.C.

“I have seen this happen in a lot of other cases where the offender molested numerous victims over a long time, and many of the victims came forward later, only after they felt sure that they would be believed,” Julie Medlin, Ph.D., said in the release.

Medlin was one of the expert witnesses retained by the Plaintiffs in the 2019 lawsuit, John Does 1-14 v. New Hanover County Board of Education. The students in that case were all former students at Isaac Bear after interviews with parents and students were conducted by the principal of the school about Kelly’s abuse.

“Had she done what she [the principal] should have done, Kelly would have been fired and reported to law enforcement. He would never have met these young men,” said Amerson.

“One of the more striking features of this lawsuit was Kelly’s affinity for pornography and his constant pressure to expose these students to pornography and other illicit material, which can have serious adverse impacts on an adolescent’s development and even the physical structure and function of their brain,” said Ramey. “He stole their innocence and exploited their vulnerabilities for his own prurient interest and gratification.”

The first lawsuit’s document production of over 80,000 pages spanning 25 years will be “helpful” in the case of the new John Does, per Amerson.

The release includes resources available to those who have been affected by sexual assault, including:

• National Sexual Assault Hotline, tel.: 1-800-656-HOPE (4673)
• National Suicide Prevention Lifeline, tel.: 1-800-273-8255
• Coastal Horizons Rape Crisis Center, tel. 910-392-7460. (New Hanover-based)

The Michael Kelly Abuse Case – Key Timeline Points

Michael Kelly was first arrested in 2018 on four sex crime charges related to a student, but the case quickly escalated as more victims came forward culminating in over 60 charges against him spanning almost two decades and at least 14 victims.

Kelly pleaded guilty in June of 2019 to 59 charges, the majority of those filed against him.

He was sentenced to a maximum of 24 years and three months for 57 consolidated charges against him and the judge added a maximum of an additional 7 years following the completion of that first sentence.

February 2o18:
Kelly is arrested and is initially charged with one count of third-degree sexual exploitation of a minor and three counts of indecent liberties with a student. His arrest was the result of a joint operation by the FBI and the New Hanover County Sheriff’s Department.

March 2018:
More victims are discovered and more than a dozen new charges are added.  At that time, the full list of charges against Kelly included:

• One count statutory sex offense with a child
• Two counts of solicitation to commit a felony
• Five counts of indecent liberties with a child
• Five counts of sexual exploitation of a minor
• Sixteen counts of indecent liberties with a student

April 2018: Seven more victims were identified and the number of felony charges rose to 59. The number of counts against him would rise to 61 later that year.

• 1 Count Indecent Liberties/Student (Bond: $1,000,000.00)
• 1 Count Statutory Sex Offense w/ Child Under 15 years old
• 3 Counts Solicitation to commit (Bond: $500,000.00)
• 1 Count Attempted Sexual Offense w/ Student
• 1 Count Sexual Exploitation of  Minor (First Degree)
• 8 Counts Sexual Exploitation of a Minor (Second Degree)
• 1 Count Sexual Exploitation of  Minor (Third Degree)
• 23 Counts Indecent Liberties w/ Student  (Bond: $500,000.00)
• 20 Counts Indecent Liberties w/ child (Bond: $100,000.00)

June of 2019: 
Kelly pleaded guilty to the majority of 61 felony charges that were then pending against him. Kelly surrendered his teaching license to the state in July 2019. Judge John Nobles sentences Kelly to 16 to 24 years in prison on the most serious charges of child exploitation and statutory sex offenses.

Kelly’s additional 57 charges are consolidated for judgment, with Nobles adding a sentence of 20-84 months (up to 7 years) to be served following completion of the first sentence.

Kelly will serve a maximum of 24 years and three months and a maximum of an additional 7 years following the completion of the first sentence.

View Kelly’s incarceration/conviction record here.  The records show as of Nov. 2023 he is currently serving his time in the Warren County Correctional Institution located in Manson, North Carolina.

Following Kelly’s conviction, civil lawsuits were filed against both New Hanover County’s school board and Kelly himself.

July of 2019:
NHPS Deputy Superintendent Dr. Rick Holliday resigned less than a week after the New Hanover Sheriff indicated an investigation had been opened into claims that the district was warned about a teacher sexually abusing students yet failed to act.

The SBI and N.C. Department of Justice were called in to investigate by New Hanover law enforcement in July 2019. However, in Aug. 2023, even though N.C. Attorney General Josh Stein’s office found “potential” crimes, his office failed to produce charges. Stein didn’t issue a formal press release, but instead told the media the statute of limitations had expired and blamed the district for not reporting the crimes earlier.

Holliday has been named in the investigation by at least two sets of parents who had complained about Kelly and other teacher behavior, according to Port City Daily. The parents allege Holliday did not act and did not report the complaints to the district.

That month, the civil lawsuit was filed by both the Rhine Law Firm, P.C. and The Lea/Schultz Law Firm, P.C.

April of 2020:
Four other victims are added to the civil lawsuit. The complaint document at that time included 10 John Does and graphic details.

In June 2020, a judge refused to dismiss the civil cases against the school district and Kelly individually.

May of 2021:
More victims of Michael Kelly are added to the lawsuit against the New Hanover County School District. The total number of victims at that time rose to 13.

Jumping ahead to 2023, on Nov. 8, a $140 million default judgment was issued against Kelly in the New Hanover County Schools student sex abuse civil case handled by the Rhine Law Firm.