1. Appeal and Error--preservation of issues--failure to refer
to order in notice of appeal--issue preserved under § 1-278
An issue concerning the dismissal of Wal-Mart's codefendants
in an action arising from a prescription greater than the
intended dose was properly before the Court of Appeals pursuant
to N.C.G.S. § 1-278 despite Wal-Mart's failure to refer to the
order in its notice of appeal where Wal-Mart registered its
objection at trial and plaintiff was put on notice that Wal-Mart
intended to question the dismissal on appeal; the order was
interlocutory and not immediately appealable because contribution
may be determined in an independent action; and the order
involved the merits of the suit and necessarily affected the
final judgment in that Wal-Mart was rendered solely liable.
2. Contribution--joint tortfeasors--settlement with some--
determination of good faith
The Court of Appeals adopts the totality of circumstances
approach of Mahathiraj v. Columbia Gas of Ohio, Inc., 617 N.E.2d
737, for determining whether a settlement with only some of the
persons liable for a tort was reached in good faith under the
Uniform Contribution among Tortfeasors Act, N.C.G.S. § 1B-1.
Courts in states which have adopted the Act have generally agreed
that a hearing is required; the Mahathiraj approach involves
consideration of all available relevant facts and places both the
type of proceeding to conduct and the decision of whether the
settlement is in good faith in the sound discretion of the trial
court.
3. Contribution--joint tortfeasors--settlement with some--
determination of good faith--specific procedure and
conclusion
In an action against a doctor, his practice, and a pharmacy
arising from a prescription where the pharmacy contended that
plaintiff's settlement with only the doctor and his practice was
in bad faith, the court did not abuse its discretion in its
choice of procedure by taking counsel for the other parties at
their word rather than allowing the remaining codefendant to
examine counsel under oath or abuse its discretion by concluding
that the settlement was in good faith.
4. Appeal and Error--preservation of issues--claim not asserted
prior to appeal
In a negligence action arising from a prescription, Wal-Mart
did not preserve for appellate review the issue of whether thetrial court should have granted its motions for directed verdict
and JNOV on the grounds that its pharmacist had filled the
prescription as directed by a physician where Wal-Mart did not
assert that claim prior to appeal.
5. Appeal and Error--preservation of issues--objection at
trial--different grounds on appeal
Defendant Wal-Mart did not preserve for appellate review its
contention regarding the court's instruction in a negligence
action arising from a prescription where Wal-Mart objected at
trial, but the grounds asserted before the trial court were
markedly different from those raised on appeal.
6. Appeal and Error--preservation of issues--expert testimony
Defendant Wal-Mart's contention in a negligence action
arising from a prescription that testimony by a pharmacist was
erroneously based upon a national standard was not properly
before the Court of Appeals in light of Wal-Mart's failure to
move to strike the standard of care testimony, its presentation
on cross-examination of essentially the same testimony, and its
further failure to object to the tender of the witness as an
expert or to request a voir dire to explore the basis for his
opinion.
Alexander, Ralston, Speckhard & Speckhard, L.L.P., by Stanley
E. Speckhard, for plaintiff-appellee.
Smith, Helms, Mulliss & Moore, L.L.P., by James G. Exum, Jr.,
Caroline H. Lock, John J. Korzen, and Amie Flowers Carmack,
for defendant-appellant Wal-Mart Stores, Inc.
JOHN, Judge.
Defendant Wal-Mart Stores, Inc. (Wal-Mart) appeals judgment
entered upon jury verdict in favor of plaintiff Robert F. Brooks.
We conclude the trial court committed no error.
Pertinent facts and procedural history include the following:
Defendant James L. Deterding, M.D. (Dr. Deterding), an employee of defendant Carolina Kidney Associates, P.A. (CKA), began treating
plaintiff in October 1991. On 11 September 1992, Dr. Deterding
prescribed the drug Prednisone (the prescription) for plaintiff's
loss of kidney function. Dr. Deterding intended that the
prescription reflect a dosage of eighty milligrams (80 mg) per day.
Plaintiff presented the prescription to pharmacist Kimberly
Stutts (Stutts) at Wal-Mart's Asheboro, North Carolina, store on
Saturday, 12 September 1992. According to Stutts, the prescription
indicated plaintiff was to take 80 mg of Prednisone four times per
day, a daily total of three hundred twenty milligrams (320 mg).
Stutts stated she telephoned CKA to inquire whether 320 mg was the
intended dosage, and that a female answered the call, placed Stutts
on hold, and subsequently returned and confirmed the dosage level
as 320 mg. Stutts thereupon filled the prescription at 320 mg per
day, and it was subsequently refilled at the same level on 26
September 1992 by pharmacist Charles Adams (Adams) in Wal-Mart's
Greenville, South Carolina, pharmacy.
In later testimony, Dr. Ronald Garber, a nephrologist and
president of CKA, maintained CKA was never open on Saturdays, that
no one answer[ed the office phone] line on Saturdays, and that an
answering machine activated on Friday afternoons received all
weekend calls and directed the caller to contact an answering
service if the call [wa]s of an urgent nature. On 28 September 1992, plaintiff was admitted to a hospita
l
emergency room in Greenswood, South Carolina, and diagnosed with
thrush, a fungal infection of the throat. Plaintiff continued
ingesting 320 mg daily for twenty-three days until a 5 October 1992
follow-up visit with Dr. Deterding revealed plaintiff had been
taking four times the amount of Prednisone intended by Dr.
Deterding.
Plaintiff subsequently contracted nocardia, a bacterialinfection of the lungs, and aspergillosis, a fungal infectio
n of
the brain, resulting in numerous operations and hospital stays. In
a videotaped deposition taken 24 April 1998 and presented at trial,
Dr. David Robirds testified plaintiff had suffered permanent kidney
failure and would require dialysis for the rest of his life.
Plaintiff filed the instant suit 11 September 1995, alleging
negligence by Dr. Deterding in writing and by Wal-Mart in
dispensing the prescription, and claiming such negligence resulted
in injuries to plaintiff which were permanent and disabling. Dr.
Deterding and CKA answered jointly 27 November 1995, denying
negligence and alleging plaintiff had been contributorily negligent
in failing to follow Dr. Deterding's verbal instructions to take 80
mg of Prednisone per day.
Dr. Deterding and CKA also cross-claimed against Wal-Mart,
asserting that any negligence on the part of Dr. Deterding or CKA
was insulated by the negligence of Wal-Mart. By answer filed 28
November 1995, Wal-Mart denied negligence, pleaded plaintiff's
contributory negligence in bar of his claim, and cross-claimed for
contribution and indemnity against Dr. Deterding and CKA.
Trial of the action commenced 7 May 1998. At the close of
plaintiff's evidence, each defendant moved for directed verdict
pursuant to N.C.G.S. § 1A-1, Rule 50(a) (1999), which motions were
denied by the trial court 18 May 1998. On 19 May 1998, plaintiff's
attorney informed the trial court a settlement (the settlement) had
been reached with Dr. Deterding and CKA in the amount of
$10,000.00. Following a hearing, the court entered ordersdismissing with prejudice plaintiff's claims, as well as Wal-Mart's
cross-claims, against Dr. Deterding and CKA (the 19 May 1998
order).
The jury verdict returned 22 May 1998 stated plaintiff was
injured by the negligence of Wal-Mart and was not contributorily
negligent. The jury awarded plaintiff $2,500,000.00 in
compensatory damages and, upon finding Wal-Mart's negligence was
accompanied by aggravated conduct, awarded plaintiff $1.00 in
punitive damages. The trial court entered judgment 2 June 1998
reflecting the verdict and taxing costs to Wal-Mart.
Wal-Mart moved for judgment notwithstanding the verdict
(JNOV), see N.C.G.S. § 1A-1, Rule 50(b) (1999), for new trial, see
N.C.G.S. § 1A-1, Rule 59(a) (1999), and to alter or amend the
judgment, see N.C.G.S. § 1A-1, Rule 59(e) (1999). The trial court
granted the latter motion 3 June 1998 so as to allow credit for the
$10,000.00 settlement with Dr. Deterding and CKA against
plaintiff's compensatory damage award, the judgment thereby
reflecting that plaintiff was entitled to recover $2,490,000.00
from Wal-Mart. Wal-Mart's remaining motions were denied 29 June
1998, and it timely appealed both the denial of its motions and the
court's 2 June 1998 judgment. Wal-Mart subsequently retained its
current appellate counsel to pursue the appeal in lieu of trial
counsel.
[1]Wal-Mart originally asserted thirty-four assignments of
error, presently condensed into four issues for our review. Wal-
Mart first attacks the trial court's 19 May 1998 order, arguing thetrial court erred by finding therein that the settlement was
reached in good faith and by failing to conduct an evidentiary
hearing on that issue.
Preliminarily, we note plaintiff objects that Wal-Mart did not
serve Dr. Deterding or CKA with its motion for a new trial . . .
or with notice of appeal, and did not take notice of appeal from
the 19 May 1998 order. See N.C.R. App. P. 3(d) (Rule 3(d))
(notice of appeal . . . shall designate the judgment or order from
which appeal is taken). Accordingly, plaintiff continues, the 19
May 1998 order is not properly before this Court for review.
However, plaintiff cites no authority supporting his position
that failure to serve Dr. Deterding and CKA precludes a new trial,
the ultimate remedy sought by Wal-Mart on appeal, and we thus do
not discuss plaintiff's contention in that regard. See Metric
Constructors, Inc. v. Industrial Risk Insurers, 102 N.C.App. 59,
64, 401 S.E.2d 126, 129 ([b]ecause the appellee cites no authority
for this argument, it is deemed abandoned), aff'd, 330 N.C. 439,
410 S.E.2d 392 (1991); cf. N.C.R. App. P. 28(b)(5) (assignments of
error for which no authority is cited will be taken as abandoned).
Further, although Wal-Mart's notice of appeal did not
reference the 19 May 1998 order as required by Rule 3(d), N.C.G.S.
§ 1-278 (1999) provides another avenue by which an appellate court
may obtain jurisdiction to review an interlocutory order absent
compliance with Rule 3(d). Floyd and Sons, Inc. v. Cape Fear Farm
Credit, 350 N.C. 47, 51, 510 S.E.2d 156, 158-59 (1999). Appellate review pursuant to G.S. § 1-278 is prope
r under the
following conditions:
(1) the appellant must have timely objected to
the order; (2) the order must be interlocutory
and not immediately appealable; and (3) the
order must have involved the merits and
necessarily affected the judgment.
Gaunt v. Pittaway, 135 N.C. App. 442, 445, 520 S.E.2d 603, 606
(1999).
All three prerequisites have been met herein. First, Wal-Mart
registered its objection at trial to the 19 May 1998 order when
entered, thus preserving the issue for appellate review. See
N.C.R. App. P. 10(b)(1). Further, in its notice of appeal, Wal-
Mart specifically appealed denial of its new trial motion,
predicated in part upon the trial court's failure to prohibit the
settlement and to conduct an evidentiary hearing upon whether it
had been reached in good faith. In short, plaintiff indisputably
was put on notice that Wal-Mart intended to question on appeal the
19 May 1998 dismissal of Dr. Deterding and CKA from the case, and
was not prejudiced by Wal-Mart's failure to include the 19 May 1998
order in its formal notice of appeal. See Floyd, 350 N.C. at 52,
510 S.E.2d at 159 (it is quite clear from the record that
plaintiffs sought appeal of order not specifically appealed
pursuant to Rule 3(d)); see also Smith v. Insurance Co., 43 N.C.
App. 269, 274, 258 S.E.2d 864, 867 (1979) (mistake in designating
judgment appealed from should not result in loss of appeal if
intent to appeal from specific judgment may fairly be inferred fromnotice and appellee is not misled by mistake).
Second, the orders dismissing Dr. Deterding and CKA were
interlocutory orders, as they were
made during the pendency of [the] action [and]
d[id] not dispose of the case, but le[ft] it
for further action by the trial court in order
to settle and determine the entire
controversy.
Veazey v. City of Durham, 231 N.C. 357, 362, 57 S.E.2d 377, 381
(1950). Interlocutory orders are not immediately appealable
unless the order deprives the appellant of a
substantial right which he will lose if the
order is not reviewed before the final
judgment.
Floyd, 350 N.C. at 51, 510 S.E.2d at 158.
In the case sub judice, Wal-Mart's potential right of
contribution from Dr. Deterding and CKA was indisputably affected
by dismissal of each from the case. However, the right to
contribution is adequately protected by exception to entry of the
interlocutory order, J&B Slurry Seal Co. v. Mid-South Aviation,
Inc., 88 N.C. App. 1, 6, 362 S.E.2d 812, 815 (1987), in that any
claim of contribution may be independently determined in a
proceeding separate from that resolving the issue of negligence.
The 19 May 1998 order thus was interlocutory and not immediately
appealable, see Floyd, 350 N.C. at 51, 510 S.E.2d at 158 (order
immediately appealable only if substantial right would be lost
absent appeal before final judgment), and Wal-Mart is entitled to
appellate review thereof under G.S. § 1-278 incident to an appeal from a final judgmen
t or
order [if the] intermediate orders involv[ed]
the merits and necessarily affect[ed] the
judgment,
In re Foreclosure of Allan & Warmblod Const. Co., 88 N.C. App. 693,
696, 364 S.E.2d 723, 725, disc. review denied, 322 N.C. 480, 370
S.E.2d 222 (1988) (citing G.S. § 1-278).
The 19 May 1998 order deprived Wal-Mart of its claims against
Dr. Deterding and CKA, and effectively rendered Wal-Mart solely
liable on any judgment in favor of plaintiff. The 19 May 1998
order thereby involv[ed] the merits [of the suit] and necessarily
affect[ed] the [final] judgment. G.S. § 1-278; see Floyd, 350
N.C. at 51, 510 S.E.2d at 159 (order depriving party of one of its
claims involved merits and affected judgment). Accordingly, the 19
May 1998 order is properly presented for our review incident to
Wal-Mart's appeal of the final judgment, see G.S. § 1-278; see also
In re Allan & Warmblod, 88 N.C. App. at 696, 364 S.E.2d at 725,
referenced in Wal-Mart's notice of appeal, see Rule 3(d).
[2]We therefore turn to the Uniform Contribution among Tort-
Feasors Act (the Act), N.C.G.S. §§ 1B-1 - 1B-6 (1999), to consider
the propriety of the trial court's dismissal of Dr. Deterding and
CKA from the case. The Act provides:
[e]xcept as otherwise provided in this
Article, where two or more persons become
jointly or severally liable in tort for the
same injury to person or property or for the
same wrongful death, there is a right of
contribution among them even though judgment
has not been recovered against all or any of
them.G.S. § 1B-1(a). However,
[w]hen a release or a covenant not to sue or
not to enforce judgment is given in good faith
to one of two or more persons liable in tort
for the same injury or the same wrongful
death:
(1) It does not discharge any of the other
tort-feasors from liability for the injury or
wrongful death unless its terms so provide;
but it reduces the claim against the others to
the extent of any amount stipulated by the
release or the covenant, or in the amount of
the consideration paid for it, whichever is
the greater; and,
(2) It discharges the tort-feasor to whom it
is given from all liability for contribution
to any other tort-feasor.
G.S. § 1B-4 (emphasis added).
The Act is silent as to what constitutes good faith and as
to the procedure by which it may be determined whether a good faith
settlement has been reached, and our courts have not previously
addressed the question. Wal-Mart's appeal thus presents an issue
of first impression.
Although courts in states which have adopted the Act have
generally agreed a hearing is required to resolve whether a
settlement has been reached in good faith under the Act, those
courts remain divided in prescribing the nature of the requisite
hearing. See Lewis A. Kornhauser & Richard L. Revesz, Settlements
Under Joint and Several Liability, 68 N.Y.U. L. Rev. 427, 443
(1993) [hereinafter Kornhauser & Revesz, Settlements]; see also
Copper Mount., Inc. v. Poma of Am., Inc., 890 P.2d 100, 105 (Colo.
1995) (courts are sharply divided as to which is the appropriatetest).
Three distinct approaches have emerged. Under the first,
courts are directed to scrutinize the substantive adequacy of the
settlement, Kornhauser & Revesz, Settlements at 443, by examining
factors such as
a rough approximation of plaintiffs' total
recovery and the settlor's proportionate
liability, the amount paid in settlement, the
allocation of settlement proceeds among
plaintiffs, . . . a recognition that a settlor
should pay less in settlement than he would if
he were found liable after a trial[,] . . .
the financial conditions and insurance policy
limits of settling defendants, as well as the
existence of collusion, fraud, or tortious
conduct aimed to injure the interests of
nonsettling defendants.
Tech-Bilt, Inc. v. Woodward-Clyde & Assoc., 698 P.2d 159, 166-67
(Cal. 1985).
The second approach involve[s] only a procedural inquiry
about the absence of collusion between the plaintiff and the
settling defendant. Kornhauser & Revesz, Settlements at 443; see
also Noyes v. Raymond, 548 N.E.2d 196, 199 (Mass. App. Ct. 1990)
(lack of good faith includes collusion, fraud, dishonesty, and
other wrongful conduct, but circumstance of low settlement amount
in comparison to plaintiff's estimate of damages by itself is not
material), and Copper Mount., 890 P.2d at 108 (a settlement is
reached in 'good faith' in the absence of collusive conduct).
By contrast, courts adopting the third approach
hold that determination of good faith should
be left to the discretion of the trial court
based upon all relevant facts available, andthat, in the absence of an abuse of that
discretion, the trial court's findings should
not be disturbed.
Velsicol Chemical Corp. v. Davidson, 811 P.2d 561, 563 (Nev. 1991);
see also Dubina v. Mesirow Realty Development, 719 N.E.2d 1084,
1088 (Ill. App. Ct. 1999) (good faith determination is matter
within discretion of trial court); Mahathiraj v. Columbia Gas of
Ohio, Inc., 617 N.E.2d 737, 741 (Ohio Ct. App. 1992) (same),
jurisdictional motions overruled, 612 N.E.2d 1245 (Ohio 1993).
Further,
[t]he type of hearing that should be conducted
to produce the facts necessary to determine
whether a settlement was made in good faith is
[also] committed to the discretion of the
trial court.
Readel v. Towne, 706 N.E.2d 99, 104 (Ill. App. Ct. 1999); see also
Mahathiraj, 617 N.E.2d at 742.
The first approach has been criticized
both for its potentially negative impact on
the policy encouraging settlement and for the
additional burdens it creates for trial courts
in conducting evidentiary hearings . . . .
Copper Mount., 890 P.2d at 105 (citations omitted). Additionally,
the statute at issue in the case originally promulgating that
approach, Tech-Bilt, 698 P.2d 159,
specifically required that a court conduct a
hearing on the issue of good faith at the
request of an interested party,
Mahathiraj, 617 N.E.2d at 741. The Tech-Bilt court thus was
delineating requisite factors to be considered during thestatutorily prescribed hearing. However, North Carolina's version
of the Act, G.S. § 1B-4, contains no hearing requirement. In the
absence thereof, we deem it inappropriate to direct consideration
by our trial courts of a specified set of factors on each occasion
the good faith nature of a settlement is questioned. Accord
Mahathiraj, 617 N.E.2d at 741.
In any event, we conclude the third view accords best with our
previous expressions of the purpose of the Act, i.e., that it
contemplates that settlements are to be encouraged, Wheeler v.
Denton, 9 N.C. App. 167, 171, 175 S.E.2d 769, 772 (1970), and that
it is . . . desirable that settlements be made promptly and with
finality, Matthews v. Hill, 2 N.C. App. 350, 354, 163 S.E.2d 7,
10 (1968).
Further, the third approach provides maximum flexibility to
our trial courts and is more workable, Mahathiraj, 617 N.E.2d at
741, in that
the court considers the totality of the
circumstances to determine if a settlement has
been reached in good faith,
id.; see also Velsicol Chemical, 811 P.2d at 563 (court should base
decision on all relevant facts available). Thus, a trial court
may, without being specifically obligated to do so, consider any of
the factors delineated in Tech-Bilt, or examine whether the
settlement was collusive as required by the second approach if such
inquiry is warranted by the facts of the individual case. However,mandating that the court perform the foregoing functions in every
case would indisputably be disruptive of, and discouraging to,
settlement.
As the Massachusetts Appeals Court has written,
[t]he goal of encouraging settlements may be
achieved only to the extent that motions for
discharge based upon settlements are routinely
allowed, with extended hearings on the
question of good faith the exception. If it
were otherwise, a party seeking to avoid trial
by settling a claim could rarely achieve that
objective; either the issue of good faith
would be the subject of a full trial, or . . .
a defendant who settles with a plaintiff may,
nevertheless, be forced to stand trial on the
merits of the tort claim. Faced with such
prospects, a defendant would have little
incentive to enter into a settlement.
Noyes, 548 N.E.2d at 199.
In short, we adopt the totality of the circumstances approach
announced in Mahathiraj, 617 N.E.2d at 741, which involves
consideration of all available relevant facts, see Velsicol
Chemical, 811 P.2d at 563, and places [both] the decision of
whether or not a settlement is made in good faith, Mahathiraj, 617
N.E.2d at 741, and what type of proceeding [to] conduct to
determine good faith in an individual case, id. at 742, in the
sound discretion of the trial court.
Accordingly, the trial court's determination of whether a
settlement was made in good faith pursuant to G.S. § 1B-4 may be
reversed only if the
court's ruling is manifestly unsupported by
reason or is so arbitrary that it could nothave been the result of a reasoned decision.
State v. Hennis, 323 N.C. 279, 285, 372 S.E.2d 523, 527 (1988).
Moreover,
[t]he mere showing that there has been a
settlement is not enough to show there has
been a lack of good faith. [Finally, t]he
burden of showing a lack of good faith is upon
the party asserting it.
Wheeler, 9 N.C. App. at 171, 175 S.E.2d at 772.
[3]In the case sub judice, Wal-Mart claims the settlement
between plaintiff and Dr. Deterding and CKA was not in good faith
and that Wal-Mart should have been allowed
to examine counsel for the settling parties
under oath (outside the presence of the jury)
regarding the nature, terms, and timing of the
settlement.
When the settlement was announced to the trial court, Wal-Mart
sought permission to voir dire both attorneys on the record for
the purpose of determining whether or not [it] wish[ed] to make a
motion with respect to the good faith issues of the settlement.
Although assuring the court it did not intend to cast . . .
aspersions on counsel, Wal-Mart argued it
should be entitled to inquire . . . [into] the
nature of the settlement, how it arose, how it
came to be, its timing, in order to establish
a record sufficient for your Honor to make
findings other than the representations of
counsel in argument . . . .
Counsel for Dr. Deterding and CKA thereupon related to the
court, without being placed under oath, the circumstances
surrounding the settlement: As the court knows, . . . three weeks ago,
[plaintiff] made a settlement demand of
$50,000.00 to my clients. We had rejected
that and made a counter offer of $25,000.00,
and, as the trial progressed, with the
incurring of additional defense costs, my
client decided not to -- not to keep the
$25,000.00 there, and it went down, your Honor
. . . .
Plaintiff's counsel concurred and added that he believed
the case against [CKA] and the doctor is a
weak one, in light of the testimony that has
developed. There would have been considerable
costs that could have been taxed to my client,
even if we win against Wal-Mart, from Dr.
Deterding and [CKA] . . . . So, I just felt
that it was in the best interest of my client
to [settle].
The trial court then stated:
I can say from my sitting here listening to
the evidence over the last two weeks that the
-- in my opinion, your [plaintiff's] case as
against Dr. Deterding and [CKA] has been --
has been going south all along, and I have no
question in my mind that, knowing the three of
you, and having been in the courtroom with you
for two weeks, that there is good reason for
this renegotiation and good reason for this
settlement.
I'm satisfied without anything further
that it's in good faith, . . . but I'm used to
having officers of the court tell me the
truth, and I don't think I've been told
anything other than the truth here this
morning, and I'm just not willing to go
through an exercise of having one or both of
these lawyers put on the witness stand to be
examined . . . when, from all I have seen and
heard in the trial of this case, I'm satisfied
that this is a good faith settlement . . . .
Although denying Wal-Mart's request to examine counsel for
plaintiff and Dr. Deterding and CKA under oath, the court allowed
Wal-Mart to continue its argument on the good faith issue. Wal-Mart emphasized that
the timing of this matter [together with] the
nature with which the plaintiff ha[d]
conducted the presentation of his opening voir
dire and evidence,
indicated the settlement was not made in good faith. Moreover,
according to Wal-Mart, plaintiff had no . . . good reason to
settle after winning the directed verdict motions, and that part
of plaintiff's long-term trial strategy was
to get rid of the doctor and [CKA] at some
point during the trial in a way that leaves
the jury with no doubt in its mind that his
entire focus, his entire case, has not been
the doctor, has not been [CKA], but [has been]
Wal-Mart all along . . . . And trial strategy
or not, your Honor, . . . that prejudices Wal-
Mart . . . .
The trial court subsequently entered the 19 May 1998 order
concluding the settlement was in good faith and dismissing Dr.
Deterding and CKA as parties. Given the trial court's familiarity
with the case, parties, and attorneys; the lack of evidence no more
substantive than mere intimation of wrongdoing on the part of
plaintiff and the settling defendants; and the burden of Wal-Mart
to make a showing of lack of good faith, see Wheeler, 9 N.C. App.
at 171, 175 S.E.2d at 772; we cannot say the trial court's 19 May
1998 order was manifestly unsupported by reason or so arbitrary
that it could not have been the result of a reasoned decision,
Hennis, 323 N.C. at 285, 372 S.E.2d at 527.
In addition, we perceive no abuse of discretion in the
procedure utilized by the trial court to reach its decision. SeeReadel, 706 N.E.2d at 104. In the words of the Illinois Cou
rt of
Appeals, Wal-Mart's claim that opposing counsel should have been
questioned under oath
is not well taken. Forcing opposing counsel
to testify as witnesses during trial is an
extreme measure which would have been wholly
unwarranted here. The [trial] court was
thoroughly familiar with this litigation, and
[opposing] counsel . . . described to the
court, in detail and on the record, how, when,
and under what terms the settlements were
achieved.
The court had no reason not to take these
attorneys at their word.
Lewis v. Illinois Cent. R. Co., 600 N.E.2d 504, 512 (Ill. App. Ct.
1992), appeal denied, 610 N.E.2d 1265 (Ill. 1993).
We note that the North Carolina Rules of Professional Conduct
(the Rules) mandate that [a] lawyer shall not knowingly . . . make
a false statement of material fact or law to a tribunal. N.C.R.
Prof. Cond. 3.3(a)(1). The comment to this Rule explains that
an assertion purporting to be on the lawyer's
own knowledge, as in . . . a statement in open
court, may properly be made only when the
lawyer knows the assertion is true or believes
it to be true on the basis of a reasonably
diligent inquiry.
N.C.R. Prof. Cond. 3.3 cmt. Failure to comply with the Rules is
a basis for invoking the disciplinary process. N.C.R. Prof. Cond.
0.2.
In light of the factors noted in Lewis and counsel's ethical
responsibilities set out in the Rules, we hold the trial court
under the circumstances sub judice did not abuse its discretion intak[ing] the[] attorneys [for Dr. Deterding and CKA and for
plaintiff] at their word, Lewis, 600 N.E.2d at 512, and denying
Wal-Mart's request to examine them under oath.
[4]Wal-Mart next contends it was error for the trial court to
deny its directed verdict and JNOV motions because
[a] plaintiff has no cause of action for
negligence against a pharmacy when its
pharmacist filled a prescription as directed
by a physician.
Wal-Mart cites this Court's opinion in Batiste v. Home Products
Corp., 32 N.C. App. 1, 231 S.E.2d 269, disc. review denied, 292
N.C. 466, 233 S.E.2d 921 (1977), as support for its proposition.
However, whether Wal-Mart's formulation correctly states our law or
indeed is applicable to the instant case in which a critical
factual issue was whether Stutts in actuality filled the
prescription as written by Dr. Deterding, is beyond the scope of
our review because Wal-Mart has failed to preserve this issue for
appeal.
As grounds for its directed verdict motion at the close of
plaintiff's evidence, Wal-Mart asserted plaintiff ha[d] failed to
carry the burden of proof [on his negligence claim] as to medical
proximate cause, i.e., as to whether the Prednisone overdose was
the cause of the injuries plaintiff claimed at trial, and had not
introduced sufficient evidence to support his punitive damages
claim. At the close of all evidence, Wal-Mart renewed its motion
for directed verdict on all the grounds previously moved, but
added that no credible evidence had been presented that the SouthCarolina standard of care had been violated in conjunction with
refilling of plaintiff's prescription at the Greenville, South
Carolina, Wal-Mart, nor was there any credible evidence that
Stutts did not call the prescribing physician's office to confirm
the prescription. Wal-Mart's post-trial JNOV motion renewed its
directed verdict motion on the same grounds.
At no point prior to appeal, therefore, did Wal-Mart assert
plaintiff's claim was barred because its pharmacists had filled the
prescription as written by Dr. Deterding. Wal-Mart thus
cannot assert this on appeal because it failed
to raise this issue before the trial court on
its motions for directed verdict and judgment
notwithstanding the verdict.
Smith v. Carolina Coach Co., 120 N.C. App. 106, 114, 461 S.E.2d
362, 367 (1995); see also Broyhill v. Coppage, 79 N.C. App. 221,
225, 339 S.E.2d 32, 36 (1986) (motion for directed verdict must
state grounds therefor, G.S. § 1A-1, Rule 50(a), and grounds not
asserted in the trial court may not be asserted on appeal), and
N.C.R. App. P. 10(b)(1) (to preserve question for appellate review,
party must have presented to the trial court motion stating the
specific grounds for the ruling . . . desired). We therefore
decline to address Wal-Mart's second argument.
[5]Similarly, we do not consider the third contention
advanced on appeal by Wal-Mart, maintaining the trial court
erred in instructing the jury regarding loss
of use of part of the body as a partial
measure of damages, because the instruction
was not supported by the law or by the
evidence. Preliminarily, we grant Wal-Mart's motion to amend the record
to incorporate into its assignment of error related to this issue
the record and page line references to the challenged portion of
the jury charge. Given our disposition of the alleged error,
moreover, we do not discuss plaintiff's contention that Wal-Mart
has abandoned this assignment of error.
It is well established that
[a] party may not assign as error any portion
of the jury charge or omission therefrom
unless he objects thereto before the jury
retires to consider its verdict, stating
distinctly that to which he objects and the
grounds of his objection . . . .
N.C.R. App. P. 10(b)(2) (emphasis added). Although Wal-Mart
objected at trial to the jury instruction at issue, the grounds
asserted before the trial court were markedly different from those
raised on appeal.
The following exchange occurred during the charge conference:
[Wal-Mart's counsel]: [The court should not
give an instruction on] loss of use of part of
the body . . . . I think there's no permanent
partial disability here of 80 percent of the
back or [a] cut off finger.
[Plaintiff's counsel]: [Plaintiff] lost part
of the skull.
[Wal-Mart's counsel]: That's a scar issue. I
think you get the disfigurement or scar for
the skull, and I think you get permanent
injury on --
[Plaintiff's counsel]: [Plaintiff] lost part
of -- lost his kidneys.
[Wal-Mart's counsel]: I hope you're jesting.
He did lose his kidneys, but that's a
permanent injury. It's not part of loss ofuse of the body.
Although Wal-Mart acknowledged at oral argument that its
objection at trial may not have been entirely clear, it is
apparent from the foregoing that Wal-Mart's stated basis for
opposing the jury instruction at issue was that plaintiff's loss of
kidney function should have been characterized as a permanent
injury rather than loss of use of part of the body. By contrast,
Wal-Mart argues in its appellate brief that evidence linking Wal-
Mart's alleged negligence to plaintiff's kidney failure did not
rise above the level of mere possibility and conjecture, such that
the instruction should not have been submitted to the jury.
Therefore,
[a]lthough defendant objected to the
instructions, [it] did not object on the
ground upon which [it] now asserts error. . .
. As the objections at trial in no way
supported the defendant's assignment of error
on appeal, we conclude that defendant did not
preserve this error for appellate review
pursuant to Rule 10(b)(2).
State v. Francis, 341 N.C. 156, 160, 459 S.E.2d 269, 271 (1995).
[6]Finally, Wal-Mart contends the trial court erred by
allowing Greensboro, North Carolina, pharmacist Joseph Franklin
Burton (Burton) to testify regarding the standard of care
applicable to Adams, Wal-Mart's Greenville, South Carolina,
pharmacist who refilled plaintiff's prescription. Again, this
argument is not properly before us.
Wal-Mart asserts Burton was not competent to testify as to
the applicable Greenville, South Carolina, standard of care andthat his testimony revealed a total dearth of knowledge of or
familiarity with the practice of pharmacy in that community, such
that his testimony should have been excluded.
As a general rule, testimony of a qualified
expert is required to establish the standard
of care and breach thereof in medical
malpractice cases,
Heatherly v. Industrial Health Council, 130 N.C. App. 616, 625, 504
S.E.2d 102, 108 (1998), as in the instant case. Further,
[t]he competency of a witness to testify as an
expert in the particular matter at issue is
addressed primarily to the sound discretion of
the trial court, and its determination is not
ordinarily disturbed by the reviewing court.
Food Town Stores v. City of Salisbury, 300 N.C. 21, 37, 265 S.E.2d
123, 133 (1980).
N.C.G.S. § 90-21.12 (1999) provides in pertinent part:
the defendant shall not be liable . . . unless
the trier of the facts is satisfied by the
greater weight of the evidence that the care
of such health care provider was not in
accordance with the standards of practice
among members of the same health care
profession with similar training and
experience situated in the same or similar
communities at the time of the alleged act
giving rise to the cause of action.
Pharmacists fall within the definition of health care provider.
N.C.G.S. § 90-21.11 (1999).
In order for plaintiff's . . . witness[] to
qualify as [an] expert[] with regard to the
[pharmacy] standard of care applicable to
[Adams], plaintiff was required under G.S. [§]
90-21.12 to lay a foundation showing the
witness[] w[as] familiar with the standard of
practice (1) among [pharmacists] with similar
training and experience, (2) who were situated
in the same or similar communities, (3) at thetime plaintiff's [prescription was re-filled.]
Haney v. Alexander, 71 N.C. App. 731, 735, 323 S.E.2d 430, 433
(1984), cert. denied, 313 N.C. 329, 327 S.E.2d 889 (1985).
Burton testified on direct examination by plaintiff that he
received his pharmacy degree from the University of North Carolina
at Chapel Hill, was currently licensed to practice pharmacy in
North Carolina, and had worked in the Greensboro, North Carolina,
area as a pharmacist for the past 28 years. Wal-Mart interposed no
objection to the tender by plaintiff of Burton as an expert in the
field of pharmacy.
In addition, Burton was questioned by counsel for Dr.
Deterding and CKA as follows:
Q: Sir, let me ask you if you are familiar
with the standards of practice for pharmacists
who had training and experience similar to
that of Charles Adams who practiced pharmacy
in Greenville, South Carolina, or similar
communities, in September 1992?
. . . .
A: Yes, I believe I am.
Wal-Mart's objection to the question was overruled and Wal-Mart
interjected no subsequent motion to strike the testimony. See
State v. Beam, 45 N.C.App. 82, 84, 262 S.E.2d 350, 352 (1980)
(failure of counsel to move to strike . . . an answer, even though
the answer is objected to, results in a waiver of the objection).
Burton then went on to express the opinion that Adams violated
the applicable standard of care by refilling plaintiff's
prescription in that once the prescription was in his hands, his
responsibility is no different from any
pharmacist seeing that prescription for the
first time. His obligation, first and
foremost, is, again, to the patient's welfare.
He should know that that dose created a
situation of potential harm to the patient,
and . . . the ultimate responsibility . . .
falls . . . to him . . . to not dispense . .
. a dose as excessive as that.
Although the foregoing testimony was received over Wal-Mart's
objection, Wal-Mart interposed no motion to strike the testimony,
see id., nor a request to voir dire Burton pursuant to N.C.G.S. §
8C-1, Rule 705 (1999) concerning the underlying facts or data,
id., supporting his opinion.
Thereafter, Wal-Mart's counsel cross-examined Burton in
pertinent part as follows:
Q: And you also testified that you are
familiar with the practice of pharmacy as to
its standards in Green[ville], South Carolina.
Did I understand you to say that?
A: No. I think what I said was that the
standards of care of a pharmacist, no matter
where they are practicing, are, basically, the
same, that they would not vary that much
pertaining to certain areas of standard of
practice.
Q: So, . . . are you unfamiliar with the
standard of care in Green[ville], South
Carolina?
A: I don't think I'm unfamiliar with the
standard of care in Green[ville], South
Carolina, because I don't feel that that
standard of care is any different from any
other area that a pharmacist might practice
in.
. . . .
Q. How do you know [the standard of care is]not different from what you do in Greensboro,
North Carolina?
A. Well, I -- when I'm referring to the
standard of care in Green[ville], South
Carolina, or Asheboro, North Carolina, or
Greensboro, North Carolina, I'm regarding --
I'm referring to what a pharmacist's
responsibility to the patient is. . . .
. . . .
Q: You don't really know whether the
standard of care in Green[ville], South
Carolina, is similar to or different from
Greensboro, North Carolina, do you?
A: Yes. I -- again, my opinion is that the
standard of care would not be different in
Green[ville], South Carolina, or any other
location that a pharmacist is practicing.
When asked by Wal-Mart the basis for his statement that the
standard of care did not differ, Burton replied:
The basis is that pharmacists attend pharmacy
school and are taught standards of care and
standards of practice in relation to your
responsibility to the patient, and those
pharmacists then go out from pharmacy school
and may work in any varied -- a variety of
practice settings, and it doesn't matter
whether that's in one state or another . . . .
Still, the basic criteria for your standard of
care is what's in the patient's best interest.
Wal-Mart further cross-examined Burton about the filling of
the prescription:
Q. . . . [Is] a pharmacist . . . left to his
or her own judgment as to whether or not to
fill a prescription after it's been confirmed
by a prescriber's office . . . ?
. . . .
A. . . . The pharmacist at that point must
exercise his or her own judgment as to whether
that dosage, even if confirmed by the
prescriber, would be harmful to the patient,and, if determining that that dosage would be
harmful to the patient, has an obligation not
to fill the prescription.
Regarding the 320 mg dosage, Burton also testified during
cross-examination that it was so excessive as to not be a gray
area, and that a pharmacist should have refused to fill a
Prednisone prescription in that amount even if confirmed by the
prescriber's office. Further, Burton reiterated, there's no gray
area when you get to 320 milligrams a day.
Burton also admitted he was not familiar with South Carolina
statutes or administrative regulations governing the practice of
pharmacy, that he had not attended any seminars discussing such
statutes or regulations, and that he had not discussed the instant
case with any South Carolina pharmacist.
By failing to move to strike Burton's standard of care
testimony elicited by Dr. Deterding and CKA, and by eliciting on
its cross-examination essentially the same testimony to which it
had previously objected, Wal-Mart thereby waived the benefit of the
earlier objection. See Beam, 45 N.C.App. at 84, 262 S.E.2d at 352
(failure to move to strike answer previously objected to results in
waiver of objection), and State v. Townsend, 99 N.C. App. 534, 537,
393 S.E.2d 551, 553 (1990) (settled law of this State, unchanged
by the adoption of the North Carolina Rules of Evidence, is that
'[w]here evidence is admitted over objection, and the same evidence
has been previously admitted or is later admitted without
objection, the benefit of the objection is lost') (citation
omitted). Accordingly, in light of Wal-Mart's failure to move to strike
the standard of care testimony by Burton which it now challenges on
appeal, see Beam, 45 N.C.App. at 84, 262 S.E.2d at 352, and its
presentation on cross-examination of essentially the same testimony
of Burton to which it had previously objected, see Townsend, 99
N.C. App. at 537, 393 S.E.2d at 553, and its further failure to
object to the tender of Burton as an expert in pharmacy or to
request a voir dire hearing pursuant to Rule 705 to explore the
bases for his opinion, see Hedden v. Hall, 23 N.C. App. 453, 455,
209 S.E.2d 358, 360 (failure to request voir dire examination of
witness offered as expert and failure to object specifically to
qualification of witness as expert constituted waiver of
objections), cert. denied, 286 N.C. 334, 211 S.E.2d 212 (1974), the
present argument of Wal-Mart, i.e., that G.S. § 90-21.12 does not
encompass a nationwide standard of care for pharmacists and that
Burton's testimony concerning the standard of care applicable to
Adams was erroneously based upon a nationwide standard, is not
properly before us.
In any event, we note this Court last year rejected a similar
argument in Marley v. Graper, 135 N.C. App. 423, 428, 521 S.E.2d
129, 134 (1999) (although 'it was the intent of the General
Assembly to avoid the adoption of a national or regional standard
of care for health providers,' if the standard of care for a given
procedure is 'the same across the country, an expert witness
familiar with that standard may testify despite his lack offamiliarity with the defendant's community') (citations omitted),
cert. denied, 351 N.C. 358, ___ S.E.2d ___ (2000). Wal-Mart's
final assignment of error is therefore unavailing.
No error.
Judges LEWIS and EDMUNDS concur.
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