JAMES L. PIERSON, KATHY L. PIERSON, LINCOLN M. HAIRE, and DONNA
B. HAIRE,Plaintiffs v. CUMBERLAND COUNTY CIVIC CENTER
COMMISSION, Defendant
1. Appeal and Error--appealability--denial of summary judgment--sovereign immunity
An appeal of the denial of a motion for summary judgment was heard on appeal where the
motion was predicated upon the doctrine of sovereign immunity.
2. Immunity--operation of coliseum--commercial activity
The trial court correctly concluded that the operation of the Cumberland County Coliseum
was a proprietary function and that defendant-commission was not protected from a nuisance action
by sovereign immunity where the evidence demonstrated that defendant's operation of the Coliseum
is a commercial enterprise. A benefit inuring to the public as a result of the municipal undertaking
is not dispositive as to whether the activity is governmental or propriety.
3. Evidence--summary judgment hearing--excerpts from magazine--self-authenticating--
timely
The trial court did not abuse its discretion by considering excerpts from a magazine when
ruling on a summary judgment motion based upon the Cumberland County Civic Center
Commission claim of sovereign immunity. Defendant argues that the materials were not properly
authenticated and that they were presented in contravention of the requirements of Rule 56, but the
excerpts were admissible against defendant as its own admissions and, since the magazine was self-
titled The Official Cumberland County Coliseum Complex News Magazine, it was self-
authenticating. While Rule 56(c) concerns the timeliness of affidavits in a summary judgment
motion, affidavits are but one form of evidence properly considered by the court in ruling on a
motion for summary judgment and Rule 56(c) does not specify that other forms of evidence be
presented at any particular time.
Appeal by defendant from order entered 7 July 1997 by Judge
William C. Gore, Jr. in Superior Court, Cumberland County. Heard
in the Court of Appeals 9 October 2000.
THE LANE LAW FIRM, P.A., by Freddie Lane, Jr., for plaintiffs-
appellees.
Cumberland County Attorney's Office, by Douglas E. Canders,
for defendant-appellant.
TIMMONS-GOODSON, Judge.
This appeal arises out of an action for private nuisance peraccidens brought by James L. Pierson, Kathy L. P
ierson, Lincoln M.
Haire, and Donna B. Haire (hereinafter collectively referred to as
plaintiffs) against the Cumberland County Civic Center Commission
(hereinafter referred to as defendant) concerning its operation
of the Cumberland County Crown Coliseum, also known as the
Cumberland County Coliseum Complex, (hereinafter referred to as
the Coliseum). Defendant moved for summary judgment based on the
doctrine of sovereign immunity. The trial court concluded that in
managing the Coliseum, defendant was acting in a proprietary
capacity and, therefore, was not cloaked with the protection of
sovereign immunity. For the reasons stated herein, we affirm the
court's ruling.
The facts relevant to this appeal show that James and Kathy
Pierson own parcels of land in Cumberland County described as Lots
1 and 2 of the G.A. Draughone Subdivision. The Piersons reside in
a home situated on one lot, which is positioned at the intersection
of Old Wilkes Road and Draughone Avenue. Their tenants, Lincoln
and Donna Haire, lease and reside at a home situated on the other
lot, which is located on Draughone Avenue. Cumberland County owns
the vast majority of the G.A. Draughone Subdivision and leases the
property to defendant as a situs for the Coliseum.
Since the Coliseum opened in October 1997, employees and
agents of defendant have directed vehicular traffic to and from
events held at the venue via Draughone Avenue. Because these
events typically draw thousands of patrons and conclude late at
night, inordinate numbers of motor vehicles are made to travel
within close proximity to plaintiffs' homes after 10:00 p.m. Moreover, during such events, many of the patrons consume alcoholic
beverages sold on the premises by defendant or under defendant's
direction. This often results in patrons engaging in a variety of
disruptive behaviors, such as sounding their car horns, urinating
in public, and shouting obscenities to each other, the general
public, and members of plaintiffs' families.
Plaintiffs instituted an action on 22 July 1998 alleging that
defendant, through its operation of the Coliseum, has created and
maintained a private nuisance per accidens that has substantially
and permanently impaired the value of plaintiffs' property.
Defendant filed an answer, a motion to dismiss, and a motion for
summary judgment, all of which asserted the doctrine of sovereign
immunity as a bar to plaintiffs' claim. The trial court conducted
a hearing on the motion to dismiss and the motion for summary
judgment. After reviewing the evidence, memoranda, and arguments
of counsel, the court concluded that defendant was not entitled to
governmental immunity because (1) operating the Coliseum was a
proprietary, rather than a governmental, enterprise, and (2) the
General Assembly forfeited the protection as to defendant in
Chapter 27 of the 1991 Session Laws. From the denial of summary
judgment, defendant appeals.
(1) by showing that an essential element of
the opposing part[ies'] claim is nonexistent;
or (2) [by] demonstrating that the opposing
part[ies] cannot produce evidence sufficient
to support an essential element of the claim
or overcome an affirmative defense which would
work to bar [their] claim.
Wilhelm v. City of Fayetteville, 121 N.C. App. 87, 89, 464 S.E.2d
299, 300 (1995) (citation omitted). In deciding whether summary
judgment is proper, the trial court must consider the evidence in
the light most beneficial to the non-moving party, drawing all
inferences from the evidence against the moving party and in favor
of the nonmovant. Schmidt, 134 N.C. App. at 251-52, 517 S.E.2d at
174. As a general rule, the doctrine of sovereign immunity shields
a municipality from liability for torts committed by its agencies
and organizations. Herring v. Winston-Salem/Forsyth County Bd. of
Educ., 137 N.C. App. 680, 683, 529 S.E.2d 458, 461, disc. review
denied, 352 N.C. 673, 545 S.E.2d 423 (2000). Application of
the doctrine depends upon whether the activity out of which the
tort arises is properly characterized as governmental or
proprietary in nature. Schmidt, 134 N.C. App. at 252, 517 S.E.2d
at 174. Specifically, [t]he doctrine applies when the entity is
being sued for the performance of a governmental function[,] [b]ut
it does not apply when the entity is performing a ministerial or
proprietary function. Herring, 137 N.C. App. at 683, 529 S.E.2d
at 461 (citations omitted).
Our Supreme Court has articulated the following test for
determining whether an activity falls within the governmental or
proprietary classification:
When a municipality is acting in behalf
of the State in promoting or protecting the
health, safety, security or general welfare of
its citizens, it is an agency of the
sovereign. When it engages in a public
enterprise essentially for the benefit of the
compact community, it is acting within its
proprietary powers. In either event it must
be for a public purpose or public use.
So then, generally speaking, the
distinction is this: If the undertaking of
the municipality is one in which only a
governmental agency could engage, it is
governmental in nature. It is proprietary and
private when any corporation, individual, or
group of individuals could do the same thing.
Since, in either event, the undertaking must
be for a public purpose, any proprietary
enterprise must, of necessity, at least
incidentally promote or protect the general
health, safety, security, or general welfare
of the residents of the municipality.
Britt v. Wilmington, 236 N.C. 446, 450-51, 73 S.E.2d 289, 293
(1952).
With respect to a proprietary endeavor, we have said that
'[i]n order to deprive a municipal corporation of the benefit of
governmental immunity, the act or function must involve special
corporate benefit or pecuniary profit inuring to the
municipality.' Hickman v. Fuqua, 108 N.C. App. 80, 83-84, 422
S.E.2d 449, 451 (1992) (quoting Rich v. City of Goldsboro, 282 N.C.
383, 386, 192 S.E.2d 824, 826 (1972) (emphasis added)). Charging
a substantial fee to the extent that a profit is made is strong
evidence that the activity is proprietary. Hare v. Butler, 99
N.C. App. 693, 699, 394 S.E.2d 231, 235 (1990). Nevertheless, a
'profit motive' is not the sole determinative factor when deciding
whether an activity is governmental or proprietary. Using the
Britt test, courts look to see whether an undertaking is one
'traditionally' provided by the local governmental units.
Hickman, 108 N.C. App. at 84, 422 S.E.2d at 451-52 (citation
omitted).
Viewed in the light most favorable to plaintiffs, the evidence
demonstrates that defendant's operation of the Coliseum is a
commercial enterprise. The facts show that since its inception,
the Coliseum has hosted a variety of entertainment activities,
i.e., professional hockey and basketball games, WWF wrestling
matches, concerts, theater/stage productions, rodeos, Monster Truck
rallies, and miscellaneous family programs. The evidence further
shows that defendant charges each promoter a fee for leasing the
facility and receives a percentage of the total ticket sales. Thisevidence notwithstanding, defendant, relying on this Court's
decision in McIver v. Smith, 134 N.C. App. 583, 518 S.E.2d 522
(1999), disc. review dismissed as improvidently allowed, 351 N.C.
344, 525 S.E.2d 173 (2000), takes the position that managing the
Coliseum is a governmental function, because it provides cultural,
educational, and informational programming that benefits the
public.
In McIver, a motorist and his passenger filed suit against
Forsyth County and the driver of an EMS unit for personal injuries
resulting from a collision between the ambulance and their vehicle.
The trial court entered summary judgment for the defendants on the
grounds of governmental immunity. On appeal to this Court, the
plaintiffs argued that operating an ambulance service was a
proprietary function, because (1) the service was historically
provided by private companies, (2) Forsyth County charged for the
service[,] and (3) the service was one that a private individual,
corporation or company could provide. McIver, 134 N.C. App. at
586, 518 S.E.2d at 525. This Court disagreed, concluding that the
county-managed ambulance service was a governmental undertaking to
which the protection of sovereign immunity applied. We reasoned
that:
Providing for the health and welfare of the
citizens of the county is a legitimate and
traditional function of county government.
[Casey v. Wake County, 45 N.C. App. 522, 524,
263 S.E.2d 360, 361 (1980).] . . . The fact
that Forsyth County charged a fee for its
ambulance service does not alone make it a
proprietary operation. The test to determine
if an activity is governmental in nature is
whether the act is for the common good of all
without the element of . . . pecuniary
profit. [McCombs v. City of Asheboro, 6 N.C.App. 234, 241, 170 S.E.2d 169, 174 (1969).]
Id. (citation omitted). We further held that although a private
company could provide ambulance services similar to Forsyth
County's[,] [that fact did] not transform the county's [service]
into a proprietary function. Id. at 587, 518 S.E.2d at 526.
Defendant's reliance on McIver is misplaced. A benefit
inuring to the public as a result of the municipal undertaking is
not dispositive as to whether the activity is governmental, as
opposed to proprietary, in nature. As the Britt court
acknowledged, [s]ince, in either event, the undertaking must be
for a public purpose, any proprietary enterprise must, of
necessity, at least incidentally promote or protect the general
health, safety, security, or general welfare of the residents of
the municipality. Britt, 236 N.C. at 451, 73 S.E.2d at 293.
Thus, in determining which classification applies, the focus must
be whether the activity is commercial or chiefly for the private
advantage of the compact community. Id. at 450, 73 S.E.2d at 293.
Concerning the management of a coliseum, our Supreme Court resolved
this issue in Aaser v. Charlotte, 265 N.C. 494, 144 S.E.2d 610
(1965).
Aaser filed an action against the City of Charlotte, the
Auditorium-Coliseum Authority, and the Charlotte Hockey Club for
injuries she sustained while attending a hockey game. In affirming
the trial court's denial of the defendants' motion for nonsuit, the
Court stated that:
The Coliseum is an arena for the holding
of exhibitions and athletic events owned by
the city of Charlotte and administered for it
by the Authority to produce revenue and forthe private advantage of the compact
community. A city is engaging in a
proprietary function when it operates such an
arena, or leases it to the promoter of an
athletic event, and when it operates
refreshment stands in the corridors of the
building for the sale of drinks and other
items to the patrons of such an event.
Consequently, the liability of the city and
the Authority to the plaintiff for injury, due
to an unsafe condition of the premises, is the
same as that of a private person or
corporation.
Aaser, 265 N.C. at 497, 144 S.E.2d at 613 (citations omitted).
Therefore, we hold that the trial court was correct in concluding
that operation of the Coliseum was a proprietary function and that
defendant was not protected by the doctrine of sovereign immunity.
In light of our ruling on this issue, we need not address and we
express no opinion as to whether the court correctly concluded that
under Chapter 27 of the 1991 Session Laws, defendant was prevented
from asserting the doctrine.
[3]With its final assignment of error, defendant contends
that the trial court improperly considered excerpts of Insight
magazine, a promotional publication distributed by defendant, in
ruling on the motion for summary judgment. The record reveals that
plaintiffs first presented these documents in opposition to the
motion while the summary judgment hearing was underway. In
challenging their consideration by the court, defendant argues that
the materials were not properly authenticated and that they were
presented in contravention of the requirements of Rule 56 of the
Rules of Civil Procedure. Again, we disagree.
A decision to admit and consider evidence offered at a summary
judgment hearing is committed to the trial court's discretion. Home Indemnity Co. v. Hoechst Celanese Corp., 128 N.C. App. 189,
200, 494 S.E.2d 774, 781, disc. review denied, ___ N.C.___, 505
S.E.2d 889 (1998). Because a discretionary ruling is accorded
great deference, it will not be disturbed on appeal absent a
showing that the decision was manifestly unsupported by reason, or
that it was so arbitrary that it could not have been the result of
a reasoned decision. White v. White, 312 N.C. 770, 777, 324
S.E.2d 829, 833 (1985).
Initially, we note that the magazine excerpts were admissible
against defendant as its own admissions. See Wright v. American
General Life Ins. Co., 59 N.C. App. 591, 596, 297 S.E.2d 910, 914
(1982) (quoting 2 Brandis on North Carolina Evidence § 167, at 6
(2d rev. ed. 1982)) ('Anything that a party to the action has
done, said or written, if relevant to the issues and not subject to
some specific exclusionary statute or rule, is admissible against
him as an admission.') Furthermore, since Insight magazine is
self-titled The Official Cumberland County Coliseum Complex News
Magazine, the publication was self-authenticating and could be
admitted without any extrinsic showing of legitimacy. See N.C.R.
Evid. 902(5) & (6) (dispensing with requirement that extrinsic
evidence of authenticity be presented prior to admission of
official publications, newspapers, and periodicals). Therefore,
the trial court did not err in receiving the excerpts into
evidence.
As to the timeliness of the materials, Rule 56(c) of the Rules
of Civil Procedure provides that when one party moves for summary
judgment, [t]he adverse party may serve opposing
affidavits at least two days before the
hearing. If the opposing affidavit is not
served on the other part[y] at least two days
before the hearing on the motion, the court
may continue the matter for a reasonable
period to allow the responding party to
prepare a response, proceed with the matter
without considering the untimely served
affidavit, or take such other action as the
ends of justice require.
N.C.R. Civ. P. 56(c). Affidavits, however, are but one form of
evidence properly considered by the court in ruling on a motion for
summary judgment. The court may also consider the pleadings,
depositions, answers to interrogatories, and admissions on file.
Id. Furthermore, Rule 56(c) does not specify that these other
forms of evidence be presented at any particular time, much less
prior to the hearing. See id. Therefore, we have no basis to
conclude that plaintiffs violated the mandates of Rule 56(c), and
we hold that the trial court did not abuse its discretion by
considering the Insight excerpts.
In light of the foregoing reasoning, we affirm the denial of
defendant's motion for summary judgment.
Affirmed.
Chief Judge EAGLES and Judge FULLER concur.
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