I have been a teacher in NC for 7 years. Never once have I received a bad observation. This year I moved to a different county in NC and the principal has been back and forth on my observation with good then bad. She is now not wanting to renew me based on those observations. This has caused a lot of stress in my life. Do I have any grounds to file a lawsuit against her for the stress that she has put on me.

Your employer doesn't want to hire you, so you want to sue her? For what? A job, which you'll be completely uncomfortable at because you had to go to court just to stay hired?

Has this caused you monetary loss? Have you been slandered in the community?

I have yet to see a valid lawsuit over "stress." If that were possible, nearly everyone in America would be in court filing against someone else.

Apparently not wanting to renew your contract for another year is not illegal. I have no idea what sort of grounds you would have to even file a lawsuit against the school.