1. Appeal and Error--record--not settled
Although the Court of Appeals invoked Appellate Rule 2 to
prevent manifest injustice, it was noted that the appeal could
have been dismissed where plaintiff served the proposed case on
appeal upon defendants, who responded with notice of objections
and proposed amendments; plaintiff's attorney agreed to all but
one of defendants' objections and proposals and added
stipulations; plaintiff's attorney indicated that he would
consider the record settled if he did not hear from defendants'
attorney; and plaintiff's counsel filed the record without an
indication that it had been settled. It is ultimately the
appellant's responsibility to settle the record on appeal;
members of the bar should exercise a certain degree of caution in
their expectations of one another and not be so willing to rely
on common courtesy that they neglect to follow the Rules of
Appellate Procedure.
2. Fraud--agreement to pay medical expenses by employer--
summary judgment for employer--no cause of action
The trial court properly granted summary judgment for
defendants in an action arising from defendants' failure to pay
as promised medical expenses incurred by plaintiff from a fall at
work where defendant did not have workers' compensation insurance
and plaintiff attempted to bring a claim for fraud and unfair
trade practices against her employer. Such a claim cannot be
brought in North Carolina; moreover, the suit was barred by the
statute of limitations.
Appeal by plaintiff from order granting summary judgment
entered 31 October 1997 by Judge Richard L. Doughton and order
denying reconsideration entered 13 March 1998 by Judge Henry E.
Frye, Jr., in Yadkin County Superior Court. Heard in the Court
of Appeals 13 January 1999.
Gordon & Nesbit, P.L.L.C., by Thomas L. Nesbit, for
plaintiff-appellant.
Rightsell, Shumate, Forrester & Eggleston, L.L.P., by Donald
P. Eggleston, for defendant-appellees.
LEWIS, Judge.
Plaintiff was the manager of a motel owned by defendant
Vishnu, Inc. ("Vishnu"), of which defendant Patel is a
shareholder and authorized agent. While at work on 10 July 1992,
the then-sixty year-old plaintiff fell and broke her ankle. The
injury required surgery and, according to plaintiff, a woman in
the hospital's admitting department told her that Patel "said
that he would take care of all the medical expense -- not to
worry." Patel made a similar statement to plaintiff's son, and
the hospital's records confirm that Patel promised the hospital
on multiple occasions that he would pay for plaintiff's
treatment. Although Vishnu had more than three full-time
employees at the time of plaintiff's accident, the company did
not have worker's compensation insurance, in violation of N.C.
Gen. Stat. § 97-93 (Cum. Supp. 1998).
After receiving statements from the hospital and filing them
for Patel, plaintiff realized in early 1993 that Patel had not
paid the bills. Plaintiff saw a lawyer, who offered to write aletter to Patel on her behalf. Plaintiff declined the attorney's
services at that time, preferring instead to talk to Patel about
the situation. When plaintiff did so, Patel again assured her
that he would pay. Plaintiff saw no more statements from the
hospital and believed that Patel had kept his word.
Plaintiff realized when the hospital sued her in 1995 that
Patel still had not paid the bills. The hospital obtained a
default judgment against plaintiff in the amount of $6,733.50 on
8 August 1995. Faced with significant medical debts, plaintiff
filed for bankruptcy under Chapter 7 on 10 October 1995. She has
since been discharged of these debts.
Plaintiff filed suit on 20 November 1996 in Yadkin County
Superior Court. After the trial court denied defendants' motion
to dismiss the case under N.C.R. Civ. P. 12(b)(6) on 11 April
1997, defendants answered and counterclaimed, and the parties
conducted discovery. Defendants moved for summary judgment on 25
August 1997, and this motion was granted on 31 October 1997.
Because defendants still had pending a counterclaim to recover
fees, plaintiff did not appeal from the trial court's summary
judgment order at that time.
After the trial court denied defendants' motion to recover
their fees on 27 February 1998, the court denied plaintiff's
motion for reconsideration on 13 March 1998. Plaintiff then gave
notice of appeal on 27 March 1998 and served her proposed case on
appeal upon defendants on 17 April 1998. Defendants served upon
plaintiff their notice of objections and proposed amendments to
the record on appeal pursuant to N.C.R. App. P. 11. In a letterdated 12 May 1998, plaintiff's attorney agreed to all but one of
defendants' objections and proposals, and he added stipulations.
Counsel for plaintiff indicated that he would "consider the
record settled" if he did not hear from defendants' attorney.
Receiving no response, plaintiff filed the record 1 June 1998
without an indication that it had been settled. Defendants then
moved to dismiss plaintiff's appeal for violations of the Rules
of Appellate Procedure. The motion has been referred to this
panel for consideration, and our decision to grant or deny the
motion will produce the same ultimate result for plaintiff.
[1]Despicable as the behavior of defendant Patel appears,
plaintiff cannot win on this appeal. First, while plaintiff's
counsel may have relied in good faith on defendants' counsel to
respond to his letter of 12 May 1998, and while the failure of
defendants' counsel to do so may appear suspicious, it is
ultimately the appellant's responsibility to settle the record on
appeal. See N.C.R. App. P. 9(a)(1)(I); Edwards v. West, 128 N.C.
App. 570, 572, 495 S.E.2d 920, 922, cert. denied, 348 N.C. 282,
501 S.E.2d 918 (1998). Members of the bar should exercise a
certain degree of caution in their expectations of one another
and not be so willing to rely on common courtesy that they
neglect to follow the Rules of Appellate Procedure. There is no
settled record on this appeal, and we could dismiss it for this
failure to comply with the Rules. Although we may invoke Rule 2
and deny defendants' motion to dismiss this appeal in an effort
"[t]o prevent manifest injustice to [plaintiff]," plaintiff loses
on other procedural grounds. [2]Plaintiff must next overcome questions regarding the
subject matter jurisdiction of her suit. Defendants argue that
the exclusive venue for a claim by an employee against an
employer for injuries arising in the course of employment is the
North Carolina Industrial Commission, citing N.C. Gen. Stat. §
97-10.1 (1991), but plaintiff did not file her claim there. A
closer reading of section 97-10.1 reveals defendants' omission of
important language at the beginning of this statute when quoting
it in their brief: "If the employee and the employer are subject
to and have complied with the provisions of this Article," it is
the employee's exclusive source of her rights and remedies. Id.
(emphasis added). Because Vishnu has not complied with the
provisions of the article by failing to secure compensation,
plaintiff argues that section 97-94 permits her to bring this
claim outside the Industrial Commission. Specifically, this
section provides in pertinent part:
Any employer required to secure the payment
of compensation under this Article who
refuses or neglects to secure such
compensation shall be punished by a penalty
of one dollar ($1.00) for each employee, but
not less than fifty dollars ($50.00) nor more
than one hundred dollars ($100.00) for each
day of such refusal or neglect, and until the
same ceases; and the employer shall be liable
during continuance of such refusal or neglect
to an employee either for compensation under
this Article or at law at the election of the
injured employee.
N.C. Gen. Stat. § 97-94(b) (Cum. Supp. 1998) (emphasis added).
It is worth noting from the plain language of the statute that
while the statute may arguably permit plaintiff to bring her
claim at law, the Industrial Commission is not precluded fromhearing claims against noncompliant employers.
Plaintiff's actual complaint, however, makes no reference to
Chapter 97. The complaint indicates not that this is a worker's
compensation claim brought in a court of law at plaintiff's
election, but a claim for fraud and unfair trade practices
against her employer under Chapter 75. It is the law of this
state that plaintiff cannot bring such an action against her
employer. See Buie v. Daniel Int'l, 56 N.C. App. 445, 448, 289
S.E.2d 118, 119-20 ("Unlike buyer-seller relationships, we find
that employer-employee relationships do not fall within the
intended scope of G.S. 75-1.1 . . . . Employment practices fall
within the purview of other statutes adopted for that express
purpose."), disc. review denied, 305 N.C. 759, 292 S.E.2d 574
(1982).
Plaintiff argues that our recent decision in Johnson v.
First Union Corp., 128 N.C. App. 450, 496 S.E.2d 1 (1998), which
was filed after summary judgment was granted in the instant case,
establishes that a superior court can have subject matter
jurisdiction over a Chapter 75 claim by an employee against her
employer. This reliance is misplaced not only because of
significant factual distinctions between that case and the one
before us now, but because of subsequent developments in Johnson.
The case was reheard, see Johnson v. First Union Corp., 131 N.C.
App. 142, 504 S.E.2d 808 (1998), review allowed, No. 485PA98
(Dec. 30, 1998), and the outcome on which plaintiff relies no
longer stands. On rehearing, we noted that "[o]ther case law has
shown that the Industrial Commission is authorized to deal withmatters such as fraud," id. at 144, 504 S.E.2d at 810 (citing
Pruitt v. Knight Publishing Co., 289 N.C. 254, 260, 221 S.E.2d
355, 359 (1976)), and concluded that "the Workers' Compensation
Act is a comprehensive regulatory scheme, and collateral attacks
are inappropriate." Id.
Plaintiff also faces hurdles she cannot clear with regard to
the statute of limitations. A 7 January 1993 entry on
plaintiff's account at the hospital reads in part: "Employee is
sueing [sic] employer - for hospital accounts." While plaintiff
now argues that she was not actually suing at that date but had
merely consulted an attorney, she was certainly aware of the
potential for litigation at that time. An entry on those same
records dated 5 April 1993 states, Comp denied - case closed.
Plaintiff did not file this suit alleging fraud and unfair trade
practices until November of 1996, nearly four years after she
knew or should have known of the misrepresentation by defendants.
The statute of limitations for fraud is three years, and begins
to run at the time the aggrieved party discovered or should have
reasonably discovered the facts constituting the fraud. N.C.
Gen. Stat. § 1-52(9) (Cum. Supp. 1998); Nash v. Motorola
Communications and Electronics, 96 N.C. App. 329, 331, 385 S.E.2d
537, 538 (1989), aff'd per curiam, 328 N.C. 267, 400 S.E.2d 36
(1991). The statute of limitations for an unfair trade practice
claim is four years under N.C. Gen. Stat. § 75-16.2 (1994), but
as set out above plaintiff has no Chapter 75 action against her
employer. Even if the fraud claim were somehow found valid,
which it cannot be in light of plaintiff's failure to properlystate a claim for fraud, see, e.g., Claggett v. Wake Forest
University, 126 N.C. App. 602, 610, 486 S.E.2d 443, 447 (1997),
this suit was not timely filed and cannot be heard in the trial
court.
In light of these many factors, the trial court was unable
to consider any genuine issues of material fact and defendants
were entitled to judgment as a matter of law. The order granting
summary judgment is affirmed. The court's decision to deny
defendants' motion for a reasonable attorney fee under section
75-16.1 was, by that statute, a matter within the trial court's
discretion. We find no abuse of discretion in that decision.
Affirmed.
Judges WALKER and TIMMONS-GOODSON concur.
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