1. Jurisdiction--matter exceeding magistrate's dollar amount--
district court dismissal
The trial court erred by granting summary judgment for
defendant where plaintiff had originally filed two claims in
small claims court seeking to recover overpayments and the
magistrate dismissed the claims with prejudice, noting that they
arose from the same cause and exceeded jurisdiction, plaintiff
instituted an action in district court, and defendant moved for
summary judgment because the causes of action had previously been
dismissed with prejudice. N.C.G.S. § 7A-212 is directed at
circumstances wherein a party asserts that the action taken by a
magistrate is void for the reason that the action was not
properly assignable to the magistrate; in this case, plaintiff's
district court action did not challenge assignment of its claim
to the magistrate court and N.C.G.S. § 7A-212 is inapplicable.
2. Collateral Estoppel and Res Judicata--res judicata--
dismissal in small claims court--action in district court
The trial court erred by determining that a dismissal in
small claims court barred an action in district court under res
judicata where plaintiff filed two claims in small claims court
to recover overpayments and the magistrate dismissed the claims
with prejudice, noting that they arose from the same cause and
exceeded jurisdiction. As the magistrate lacked jurisdiction
over plaintiff's total claim, that court's order dismissing
plaintiff's consolidated claim is as if it had never happened and
cannot bar plaintiff's district court action under res judicata.
The with prejudice phraseology relied upon by defendant was
mere surplusage. Appeal by plaintiff from judgment entered 7 October 1997 by
Judge Chester C. Davis in Forsyth County District Court. Heard
in the Court of Appeals 26 January 1999.
Brooks, Pierce, Mclendon, Humphrey & Leonard, L.L.P., by
David W. Sar, for plaintiff-appellant.
Linda Stack pro se.
JOHN, Judge.
Plaintiff Falk Integrated Technologies, Inc., d/b/a SSA
Southeast appeals the trial court's grant of summary judgment in
favor of defendant. Plaintiff also contends the court erred by
denying plaintiff's Motion to Reconsider, or in the Alternative,
for a New Trial or for Relief from Judgment. We reverse the
trial court.
Pertinent facts and procedural history as alleged in
plaintiff's complaint include the following: Plaintiff is a
developer and integrator of information systems for
manufacturing and supply-chain management. On 5 February 1996,
plaintiff employed defendant as an at-will employee. Defendant
was to be paid for days actually worked at a rate of $4,333.33
per month. Due to an error in plaintiff's payment practices,
however, defendant was overpaid a total of $5,421.43 in the
months of December 1996 and January 1997.
Defendant subsequently declined plaintiff's request to
return the overpayments. Plaintiff thereupon filed two claims in
the Small Claims Court Division of District Court in Forsyth
County, seeking to recover the December overpayment of $2,269.80in the first, and the January overpayment of $3,000.00 in the
second.
Prior to the presentation of evidence, the magistrate's
court dismissed plaintiff's claims with prejudice, noting
Plaintiff's action file nos. 97 CVM 5114 and 97 CVM 5115 arise
from the same cause [and] exceeds jurisdiction. Although the
section is not specifically referenced, the parties do not
dispute that the court was referring to the three thousand dollar
($3,000.00) jurisdictional amount provided in N.C.G.S. § 7A-210
(1995).
On 18 August 1997, plaintiff instituted an action in Forsyth
County District Court consolidating the two claims against
defendant. The latter thereupon moved for summary judgment
pursuant to N.C.G.S. § 1A-1, Rule 56 (1995), asserting:
the same causes of action alleged in the
complaint herein have previously been
dismissed With Prejudice by a North
Carolina Court of competent jurisdiction . .
. and Plaintiff herein filed no appeal from
these prior adverse decisions within the time
allowed.
The trial court granted defendant's motion by order filed 7
October 1997. Following subsequent denial of its Motion to
Reconsider, plaintiff filed timely notice of appeal.
Summary judgment is appropriately granted if
the pleadings, depositions, answers to
interrogatories, and admissions on file,
together with the affidavits, if any, show
that there is no genuine issue as to any
material fact and that any party is entitled
to a judgment as a matter of law.
N.C.R. Civ. P. 56(c). A summary judgment movant bears the burden
of establishing the lack of any triable issue, and may do so by proving that an essential element of the
opposing party's claim is nonexistent, or by
showing through discovery that the opposing
party cannot produce evidence to support an
essential element of his claim . . . . All
inferences of fact from the proofs offered at
the hearing must be drawn against the movant
and in favor of the party opposing the
motion.
Boudreau v. Baughman, 322 N.C. 331, 342-43, 368 S.E.2d 849, 858
(1988) (citations omitted). Alleged errors of law are subject to
de novo review on appeal. See Va. Electric Power Co. v. Tillett,
80 N.C. App. 383, 385, 343 S.E.2d 188, 191, cert. denied, 317
N.C. 715, 347 S.E.2d 457 (1986).
[1]Plaintiff first contends N.C.G.S. § 7A-212 (1995) does
not apply to [plaintiff's] district court action and therefore
d[oes] not mandate dismissal and/or judgment in favor of
[d]efendant. We agree.
G.S. § 7A-212 provides in relevant portion:
No judgment of the district court
rendered by a magistrate in a civil action
assigned to him by the chief district judge
is void, voidable, or irregular for the
reason that the action is not one properly
assignable to the magistrate under this
article. The sole remedy for improper
assignment is appeal for trial de novo before
a district judge in the manner provided in
[N.C.G.S. § 7A-228 (1995)].
G.S. § 7A-212.
The plain language of G.S. § 7A-212 thus indicates it is
directed at those circumstances wherein a party asserts that the
action taken by the magistrate is void, voidable, or irregular
for the reason that the action is not properly assignable to the
magistrate. Id. The assignment of small claims to magistrates is governed by
N.C.G.S. § 7A-211 (1995), which states in pertinent part:
In the interest of speedy and convenient
determination, the chief district judge may,
in his discretion, by specific order or
general rule, assign to any magistrate of his
district any small claim action pending . . .
.
Id.
Read in pari materia, therefore, the statutes prohibit a
party from asserting improper assignment by a chief district
judge as a basis for attacking a magistrate's ruling, and require
instead a de novo proceeding by an aggrieved party . . . before
a district court judge or a jury. N.C.G.S. § 7A-228(a) (1995).
In the case sub judice, plaintiff's district court action
did not challenge assignment of its claim to the magistrate
court. Rather, in the words of plaintiff,
[plaintiff] bowed to the [m]agistrate's
judgment and refiled [since] . . . the
[m]agistrate evidently believed that
[plaintiff] should have originally filed the
consolidated action.
Accordingly, G.S. § 7A-212 is inapplicable to the instantcase and the trial court's dismissal can not be sustained upon
this ground.
[2]Plaintiff next argues the trial court erred in
determining that the principals of res judicata barred
[plaintiff's action]. Plaintiff's contention in this regard is
likewise well founded.
The magistrate court dismissed plaintiff's consolidated
claims as arising from the same cause of action and thus
exceeding the court's jurisdictional amount. A universal
principle as old as the law is that the proceedings of a court
without jurisdiction of the subject matter are a nullity.
Burgess v. Gibbs, 262 N.C. 462, 465, 137 S.E.2d 806, 808 (1964).
Thus, [w]hen a court decides a matter without . . .
jurisdiction, then the whole proceeding is . . . as if it had
never happened. Hopkins v. Hopkins, 8 N.C. App. 162, 169, 174
S.E.2d 103, 108 (1970). As the magistrate court lacked
jurisdiction over plaintiff's total claim, that court's order
dismissing plaintiff's consolidated claim is as if it had never
happened, id., and cannot operate to bar plaintiff's district
court action under the principle of res judicata. The with
prejudice phraseology relied upon heavily by defendant
constituted in the present instance mere surplusage. See Symons
Corp. v. Quality Concrete Construction, 108 N.C. App. 17, 21, 422
S.E.2d 365, 367 (1992) (language stating this action shall be
tried on the issue of damages only in trial court's partial
summary judgment on liability issue was mere surplusage where
summary judgment motion specifically limited the court'sconsideration to the issue of liability and preserved the issue
of damages for later determination).
Having found error in entry of summary judgment for
defendant, we decline to address plaintiff's final assignment of
error that the trial court erred in denying its Motion to
Reconsider.
Reversed.
Judges GREENE and HUNTER concur.
*** Converted from WordPerfect ***