1. Appeal and Error-_appealability_-interlocutory order_-sovereign immunity
defense--substantial right
Although the trial court's orders in a condemnation proceeding case are interlocutory
based on the fact that the orders left pending the Department of Transportation's condemnation
actions against defendants, appeals from interlocutory orders raising issues of sovereign
immunity affect a substantial right sufficient to warrant immediate appellate review.
2. Eminent Domain-_highway condemnation-_arbitrary and capricious conduct_abuse
of discretion--sovereign immunity defense
The trial court did not err in a condemnation proceeding by denying the Department of
Transportation's (DOT) motion to strike under N.C.G.S. § 1A-1, Rule 12(f) defendant property
owners' second defense alleging that DOT engaged in arbitrary and capricious conduct and
abused its agency discretion even though DOT asserted the defense of sovereign immunity and
defendants may not raise the National Environmental Policy Act for a state project, nor may it
obtain judicial review of the environmental documents at issue as part of their defense in this
action, because: (1) DOT acquired title to defendants' land under N.C.G.S. § 136-19; and (2) the
legislature has implicitly waived DOT's sovereign immunity to the extent of the rights afforded
in N.C.G.S. § 136-19.
3. Eminent Domain_highway condemnation_subject matter jurisdiction--judicial
review of adverse agency determination
The trial court did not err in a condemnation proceeding by granting the Department of
Transportation's (DOT) motion to dismiss defendants' counterclaims alleging violations of the
National Environmental Policy Act (NEPA) and the North Carolina Environmental Policy Act
(NCEPA) based on lack of subject matter jurisdiction under N.C.G.S. § 1A-1, Rule 12(b)(1),
because: (1) although defendants have satisfied the three requirements for judicial review of an
adverse agency determination under N.C.G.S. § 150B-43, defendants failed to file a petition with
the superior court within thirty days of DOT's publication of the Final Environmental Impact
Statement on 1 December 1995 as required by N.C.G.S. § 150B-45; and (2) the record supports
the conclusion that defendants knew or should have known of DOT's action by 1 December
1995.
Attorney General Roy Cooper, by Assistant Attorney Generals
Fred Lamar and Lisa C. Glover, for the State.
Cunningham, Dedmond, Petersen & Smith, LLP, by F. Marsh Smith,and Moser, Schmidly, Mason & Roose, LLP, b
y Stephen S.
Schmidly, for defendants.
EAGLES, Chief Judge.
The North Carolina Department of Transportation (NCDOT) and
Mack Blue, Brenda Blue, and Pierce Irby (collectively,
defendants) each appeal from the trial court's orders denying
NCDOT's motion to strike defendants' second defense, granting
NCDOT's motion to dismiss defendants' counterclaims, granting
defendants' motion to consolidate cases for purposes of discovery
and G.S. § 136-108 hearing, denying defendants' motion to join
necessary parties, allowing in part defendants' motion to modify
the trial court's previous order, and allowing defendants' motion
to certify this matter for immediate appeal pursuant to Rule 54.
After a careful review of the record, briefs, and arguments of
counsel, we affirm.
NCDOT has a program for improving transportation, which
includes enlarging and constructing highways, known as the
Transportation Improvement Program (TIP). See G.S. §
143B-350(f)(4). One TIP project, designated TIP R-210, was a
transportation project intended to improve portions of United
States Highway 1 from south of State Road 1853 near Lakeview, North
Carolina, to State Road 1180 near Sanford, North Carolina.
Planning for TIP R-210 began in 1989, and funding for the project
was to be provided by the State. Throughout the planning process,
NCDOT held public hearings and accepted public input on TIP R-210.
In 1991, NCDOT prepared and published a Draft EnvironmentalImpact Statement (DEIS) evaluating the envir
onmental impact of
various alternative routes for TIP R-210. Thereafter, on 22 April
1992, NCDOT issued a news release announcing its selection of the
route designated Alternative A for TIP R-210. Then, on 1
December 1995, NCDOT prepared and published a Final Environmental
Impact Statement (FEIS), as required by the North Carolina
Environmental Policy Act (NCEPA), G.S. § 113A-1 et seq.,
approving the selection of Alternative A. Ultimately, on 21
March 1996, the U.S. Federal Highway Administration (FHWA)
approved NCDOT's selection of Alternative A as the
environmentally preferred alternative and issued a Record of
Decision (ROD) affirming its approval on that date.
Defendants each owned property located within the right-of-way
of Alternative A. After the selection of Alternative A, NCDOT
entered into negotiations with each defendant in an attempt to
agree upon acceptable purchase prices for their parcels of land.
After these negotiations failed, NCDOT filed separate condemnation
actions against each defendant on 26 July 1999. On 26 October
1999, defendant Irby filed his answer and counterclaim, and
thereafter, on 23 November 1999, defendants Mack and Brenda Blue
filed their answers and counterclaims. In their answers and
counterclaims, defendants alleged as a defense that NCDOT engaged
in arbitrary and capricious agency action and [] abused its agency
discretion (defendants' second defense) and as a counterclaim
that NCDOT violated NCEPA and the National Environmental Policy Act
(NEPA), 42 U.S.C. § 4321 et seq., by preparing an inadequate
FEIS, inter alia. Defendants filed a motion to consolidate these cases for
purposes of discovery and hearings. Subsequently, NCDOT filed
motions to dismiss defendants' counterclaims pursuant to Rules
12(b)(1), 12(b)(2), and 12(b)(6) and motions to strike defendants'
second defense pursuant to Rule 12(f). Defendants then filed a
motion to join as necessary parties NCDOT Secretary David McCoy and
NCDOT Project Development and Environmental Analysis Branch Manager
William D. Gilmore. A hearing was held on all pending motions
during the 28 February 2000 Civil Session of Moore County Superior
Court, the Honorable Catherine C. Eagles presiding. By order
entered 10 March 2000, the trial court denied NCDOT's motion to
strike defendants' second defense, granted NCDOT's motion to
dismiss defendants' counterclaims for lack of subject matter
jurisdiction pursuant to Rule 12(b)(1), granted defendants' motion
to consolidate cases for purposes of discovery and G.S. § 136-108
hearing, and denied defendants' motion to join necessary parties.
In response to the order, defendants filed a motion to modify
order, or in the alternative, to certify this matter for immediate
appeal pursuant to Rule 54. After a hearing on this motion, Judge
Eagles entered a second order on 30 May 2000 making a minor
modification to her previous order and certifying this matter for
immediate appeal. NCDOT and defendants appeal.
[1]At the outset, we note that these appeals are
interlocutory in nature. An interlocutory order is one made
during the pendency of an action, which does not dispose of the
case, but leaves it for further action by the trial court in order
to settle and determine the entire controversy. Veazey v. Durham,231 N.C. 357, 362, 57 S.E.2d 377, 381 (1950). Here, the tri
al
court's orders did not dispose of the entire case; instead, the
orders left pending NCDOT's condemnation actions against
defendants. As further action by the trial court is pending to
settle and determine the entire controversy, the trial court's
orders are interlocutory.
Generally, there is no right of immediate appeal from an
interlocutory order. Abe v. Westview Capital, 130 N.C. App. 332,
334, 502 S.E.2d 879, 881 (1998). However, appeals from
interlocutory orders raising issues of sovereign immunity affect a
substantial right sufficient to warrant immediate appellate review.
See Price v. Davis, 132 N.C. App. 556, 558-59, 512 S.E.2d 783, 785
(1999). Here, NCDOT asserts that the defense of sovereign immunity
bars defendants' second defense and counterclaims. Accordingly,
this appeal warrants immediate appellate review.
At the heart of both NCDOT's appeal and defendants' cross-
appeal is the propriety of the trial court's treatment of
defendants' second defense and defendants' counterclaims. First,
we address the trial court's denial of NCDOT's motion to strike
defendants' second defense pursuant to Rule 12(f). Next, we
address the trial court's grant of NCDOT's motion to dismiss
defendants' counterclaims for lack of subject matter jurisdiction
pursuant to Rule 12(b)(1).
[2]As to the trial court's denial of NCDOT's motion to strike
defendants' second defense, NCDOT argues that the trial court erred
in denying the motion based on the doctrine of sovereign immunity.
After careful review of this issue, we affirm the trial court. Under Rule 12(f), the trial court may order str
icken from any
pleading any insufficient defense or any redundant, irrelevant,
immaterial, impertinent, or scandalous matter. G.S. § 1A-1, Rule
12(f). A motion under Rule 12(f) is a device to test the legal
sufficiency of an affirmative defense. See Trust Co. v. Akelaitis,
25 N.C. App. 522, 525, 214 S.E.2d 281, 284 (1975). If there is
any question as to whether an issue may arise, the motion [under
Rule 12(f)] should be denied. Shellhorn v. Brad Ragan, Inc., 38
N.C. App. 310, 316, 248 S.E.2d 103, 108 (1978).
Defendants' second defense alleges that NCDOT engaged in
arbitrary and capricious conduct and abused its agency discretion.
In condemnation proceedings, [e]ach owner is entitled to defend
upon the ground his property does not qualify for the purpose
intended, or that its selection was the result of arbitrary or
capricious conduct on the part of the taking agency.
Redevelopment Commission v. Hagins, 258 N.C. 220, 225, 128 S.E.2d
391, 395 (1962).
Nevertheless, NCDOT asserts the defense of sovereign immunity.
Sovereign immunity is a theory or defense established to protect
a sovereign or state as well as its officials and agents from suit
in certain instances. Vest v. Easley, 145 N.C. App. 70, 73, 549
S.E.2d 568, 572 (2001). Under the doctrine of sovereign immunity,
[t]he State of North Carolina is immune from suit unless and until
it expressly consents to be sued. State v. Taylor, 322 N.C. 433,
435, 368 S.E.2d 601, 602 (1988).
Here, NCDOT acquired title to defendants' land pursuant toG.S. § 136-19. Section 136-19 empowers [NCDOT
] to acquire title
to land that it deems necessary for the construction or maintenance
of roads. Ferrell v. Dept. of Transportation, 334 N.C. 650, 655,
435 S.E.2d 309, 313 (1993). In enacting this statutory scheme,
the legislature has implicitly waived [NCDOT's] sovereign immunity
to the extent of the rights afforded in [G.S.] § 136-19 []. Id.
Consequently, NCDOT may not avail itself of this defense here.
Additionally, we note that defendants further alleged as part
of their second defense that NCDOT's conduct in condemning their
land was arbitrary and capricious based in part on NCDOT's alleged
violations of NCEPA and NEPA. Significantly, TIP R-210 is a state
project. The project was to be constructed with North Carolina
Highway Trust Funds, and, as defendants alleged, NCDOT shifted
funds so that [TIP R-210] will be built without federal funds.
The requirements of NEPA are inapplicable to the state. NEPA
has no application to a project unless [] the action is federal.
Buda v. Saxbe, 406 F.Supp. 399, 402 (E.D. Tenn. 1974) (citations
omitted). Moreover, NEPA . . . by its express language operates
only upon federal agencies, and imposes no duties on the States or
on municipalities, except to the extent that a non-federal entity
is found to be acting in partnership with the federal government.
Town of North Hempstead v. Village of North Hills, 482 F.Supp. 900,
903 (E.D.N.Y. 1979) (citations omitted); see also Ely v. Velde,
451 F.2d 1130, 1139 (4th Cir. 1971).
The record reveals that some federal funds were spent on
planning for TIP R-210; that NCDOT planned to build and design theproject to meet federal standards; and that NCDOT left open the
option to later request federal funds for the project. However,
use of limited federal funding during the planning and design
stage of a highway project does not constitute 'major federal
action' invoking NEPA. Hawthorn Environmental Preserv. Ass'n v.
Coleman, 417 F.Supp. 1091, 1099 (N.D. Ga. 1976), aff'd per curiam,
551 F.2d 1055 (5th Cir. 1977). Furthermore, early coordination or
compliance with the eligibility requirements for federal funding,
or designing a project so as to preserve the option of federal
funding in the future, standing alone, will not convert a project
into a 'major federal action' within the purview of NEPA.
Southwest Williamson County Community v. Slater, 67 F.Supp.2d 875,
884-85 (M.D. Tenn. 1999), aff'd and remanded, 243 F.3d 270 (6th
Cir. 2001). Because no major federal action was involved in TIP R-
210, we hold that NEPA was inapplicable to NCDOT, a state agency,
in this project. Consequently, defendants are barred from raising
alleged violations of NEPA in this action.
As for the alleged NCEPA violations, this Court has held that
in condemnation proceedings, a landowner's failure to assert a
violation of NCEPA as a defense in their answer constitutes a
waiver. See State v. Williams and Hessee, 53 N.C. App. 674, 680-
81, 281 S.E.2d 721, 726 (1981). Here, defendants raised the
defense in their answer. Thus, defendants are not precluded by the
doctrine of waiver from proceeding with their defense that NCDOT's
alleged violations of NCEPA made the condemnation of their land
arbitrary and capricious. However, [a]dministrative and judicial review of an
environmental document is incidental to, and may only be undertaken
in connection with, review of the agency action. No other review
of an environmental document is allowed. G.S. § 113A-13 (emphasis
added). Significant for purposes of this appeal is the fact that
the environmental documents (the DEIS, the FEIS, and the ROD) were
all prepared during NCDOT's planning and selection of Alternative
A for TIP R-210. NCDOT's selection of Alternative A was
separate and distinct from its action in condemning defendants'
land, which is the basis of its complaint here. Pursuant to G.S.
§ 113A-13, these environmental documents may be reviewed only in
connection with review of NCDOT's selection of Alternative A for
TIP R-210 -- the agency action for which they were created, and not
NCDOT's condemnation of defendants' land. Thus, while defendants
are entitled to a review of whether NCDOT's condemnation action was
arbitrary and capricious, defendants may not obtain judicial review
of the environmental documents created during the planning and
selection of Alternative A as part of the judicial review of the
condemnation.
Accordingly, NCDOT is deemed to have waived its sovereign
immunity in this condemnation action. Additionally, allegations
of arbitrary and capricious conduct or of abuse of discretion on
the part of [NCDOT] render the issue subject to judicial review.
Dept. of Transportation v. Overton, 111 N.C. App. 857, 859, 433
S.E.2d 471, 473 (1993). Nevertheless, defendants may not raise
NEPA nor obtain judicial review of the environmental documents at
issue as part of their defense in this action. Thus, we affirmthat part of the trial court's order denying NCDOT's motion to
strike defendants' second defense.
[3]Now, we turn to the trial court's grant of NCDOT's motion
to dismiss defendants' counterclaims which allege violations of
NCEPA and NEPA for lack of subject matter jurisdiction pursuant to
Rule 12(b)(1). Defendants contend that the court erred in
dismissing these counterclaims based on the North Carolina
Administrative Procedure Act (NCAPA), G.S. § 150B-1 et seq.
After careful review of this issue, we affirm.
When reviewing a motion to dismiss for lack of subject matter
jurisdiction pursuant to Rule 12(b)(1), a trial court may consider
and weigh matters outside the pleadings. See Smith v. Privette,
128 N.C. App. 490, 493, 495 S.E.2d 395, 397 (1998). However, if
the trial court confines its evaluation to the pleadings, the court
must accept as true the plaintiff's allegations and construe them
in the light most favorable to the plaintiff. See id. We note
that this Court's review of an order granting a Rule 12(b)(1)
motion to dismiss is de novo, except to the extent the trial court
resolves issues of fact and those findings are binding on the
appellate court if supported by competent evidence in the record.
See id.
Here, defendants attach their NCEPA and NEPA claims as
counterclaims to NCDOT's condemnation actions. Through these
counterclaims, defendants challenge[] [NCDOT's] selecting
[A]lternative A to build TIP R-210 and allege that NCDOT violated
both NCEPA and NEPA by preparing an inadequate FEIS, inter alia. The North Carolina Environmental Policy Act (NCEPA), G.
S. § 113A-
1 et seq., sets forth our State's environmental policy. Likewise,
the National Environmental Policy Act (NEPA), 42 U.S.C. § 4321 et
seq., sets forth the environmental policy of our federal
government. NCEPA and NEPA are [s]imilar. D. Mandelker, NEPA
Law and Litigation § 12.02[1] (2nd ed. 2001).
The primary purpose of both the state and federal
environmental statutes is to ensure that government agencies
seriously consider the environmental effects of each of the
reasonable and realistic alternatives available to them. Orange
County v. Dept. of Transportation, 46 N.C. App. 350, 383, 265
S.E.2d 890, 911 (1980). Both acts require that government agencies
-- in North Carolina, those state agencies planning to spend public
money on governmental projects -- must issue environmental impact
statements (EIS) to provide a full and fair discussion of
significant environmental impacts and [] inform decision-makers and
the public of the reasonable alternatives which would avoid or
minimize adverse impacts or enhance the quality of the
environment. 1 N.C.A.C. § 25.0601; see also G.S. § 113A-4(2);
42 U.S.C. § 4332(C).
Notably, neither NCEPA nor NEPA contain explicit judicial
review provisions. Nevertheless, federal courts have long
recognized that [they] have jurisdiction over NEPA challenges
pursuant to the [federal] APA, 5 U.S.C. § 702. Sierra Club v.
Slater, 120 F.3d 623, 630-31 (6th Cir. 1997); see also JerseyHeights Neighborhood Ass'n v. Glendening, 174 F.3d 180, 186 (4th
Cir. 1999); N.C. Alliance for Transp. Reform v. D.O.T., 151
F.Supp.2d 661, 678 (M.D.N.C. 2001). Likewise, this Court has
adopted the view that judicial review of an alleged NCEPA violation
is available under the NCAPA's judicial review provisions,
particularly G.S. § 150B-43. See Citizens Roadways v. Dept. of
Transp., 145 N.C. App. ___, 550 S.E.2d 253 (2001); Orange County,
46 N.C. App. 350, 265 S.E.2d 890. Again, we note that since TIP R-
210 was a state project, NEPA is inapplicable here. See Buda v.
Saxbe, 406 F.Supp. 399, 402.
The NCAPA establishes a uniform system of administrative rule
making and adjudicatory procedures for agencies and applies to
every agency unless an agency is expressly exempted. G.S. § 150B-
1(a) and (c). Under the administrative hearing provisions of the
NCAPA,
any dispute between an agency and another
person that involves the person's rights,
duties, or privileges . . . should be settled
through informal procedures. . . . If the
agency and the other person do not agree to a
resolution of the dispute through informal
procedures, either the agency or the person
may commence an administrative proceeding to
determine the person's rights, duties, or
privileges, at which time the dispute becomes
a 'contested case.'
G.S. § 150B-22. The administrative hearing provisions of this act
(G.S. §§ 150B-22 to 150B-42) apply to all agencies and all
proceedings except those expressly exempted. See Empire Power Co.
v. N.C. Dept. of E.H.N.R., 337 N.C. 569, 586, 447 S.E.2d 768, 778
(1994). The General Assembly has expressly named the particularagencies exempted from the NCAPA and specified the extent of each
such exemption. See id. at 587, 447 S.E.2d at 779.
'The Department of Transportation, except as provided in G.S.
136-29 (construction contract claims)' is expressly exempt from the
contested case provisions. Citizens Roadways, 145 N.C. App. at
497, 499, 550 S.E.2d at 255 (quoting G.S. § 150B-1(e)(8)).
Consequently, defendants cannot petition for a hearing before the
Office of Administrative Hearings (OAH) in this case. Id.
Nevertheless, judicial review of agency decisions in Superior
Court, pursuant to G.S. § 150B-43, is proper in certain cases where
no prior proceeding was held before the OAH. See id.; see also
Charlotte Truck Driver Training School v. N.C. DMV, 95 N.C. App.
209, 212, 381 S.E.2d 861, 862-63 (1989); Hedgepeth v. N.C. Div. of
Servs. for the Blind, 142 N.C. App. 338, 345, 543 S.E.2d 169, 173
(2001).
Section 150B-43 of the NCAPA provides aggrieved parties an
avenue for judicial review of adverse agency determinations.
Before seeking review of an adverse agency determination under §
150B-43, a party must satisfy five requirements: (1) the person
must be aggrieved; (2) there must be a contested case; (3)
there must be a final agency decision; (4) administrative
remedies must be exhausted; and (5) no other adequate procedure
for judicial review can be provided by another statute. Huang v.
N.C. State University, 107 N.C. App. 710, 713, 421 S.E.2d 812, 814
(1992). First, '[p]erson aggrieved' means any person or group of
persons of common interest directly or indirectly affected
substantially in his or its person, property, or employment by an
administrative decision. G.S. § 150B-2(6). Clearly, defendants
are aggrieved because (1) they own land within the proposed
route for Alternative A for TIP R-210, (2) they asserted their
position as taxpayers, and (3) they share a sufficient
geographical nexus to Alternative A for TIP R-210 so that they
may be expected to suffer whatever adverse environmental effects
TIP R-210 may have. See Orange County, 46 N.C. App. 350, 360-62,
265 S.E.2d 890, 899.
Second, a contested case is (1) an agency proceeding, (2)
that determines the rights of a party or parties. Lloyd v. Babb,
296 N.C. 416, 424-25, 251 S.E.2d 843, 850 (1979). NCEPA broadens
the definition of 'contested case' and expand[s] the scope of
procedural remedies available under [the NCAPA], including the
right to judicial review provided in G.S. § 150B-43. Orange
County, 46 N.C. App. at 375, 265 S.E.2d at 907. When violations of
NCEPA are alleged, NCDOT's decision concerning location of a
highway gives rise to a contested case under the NCAPA. See id. at
374-76, 265 S.E.2d at 906-07. Here, defendants, as aggrieved
parties, alleged that NCDOT violated NCEPA in the process of
selecting the Alternative A location for TIP R-210.
Consequently, based on our precedent in Orange County, defendants
have a contested case.
We note that since we decided Orange County in 1980, theGeneral Assembly has exempted NCDOT from the contest
ed case
provisions of the NCAPA, except as provided in G.S. § 136-29. See
1991 N.C. Sess. Laws ch. 418, § 2; G.S. § 150B-1(e)(8).
Nonetheless, a contested case hearing, from which NCDOT is
expressly exempt, is distinguishable from a contested case.
Community Psychiatric Ctrs. v. N.C. Dept. of Human Resources, 103
N.C. App. 514, 515, 405 S.E.2d 769, 770 (1991). A contested case
extends beyond an adjudicatory hearing to
include any agency proceeding, by whatever
name called, wherein the legal rights, duties
and privileges of a party are required by law
to be determined by an agency after an
opportunity for an adjudicatory hearing.
Id. (quoting Charlotte-Mecklenburg Hosp. Authority v. N.C. Dept. of
Human Resources, 83 N.C. App. 122, 124, 349 S.E.2d 291, 292
(1986)). Defendants did not have an adjudicatory hearing before
NCDOT here; however, NCDOT did hold public hearings on TIP R-210.
Nevertheless, NCDOT's exemption from the contested case provisions
of the NCAPA does not affect the fact that defendants have a
contested case for purposes of satisfying Huang v. N.C. State
University, 107 N.C. App. 710, 421 S.E.2d 812.
Third, in determining whether a particular agency action is
final, [t]he core question is whether the agency has completed its
decisionmaking process, and whether the result of that process is
one that will directly affect the parties. Franklin v.
Massachusetts, 505 U.S. 788, 797, 120 L.Ed.2d 636, 648 (1992) (U.S.
Supreme Court analyzing final agency action under the federal APA
and 5 U.S.C. § 704). We note that TIP R-210 was a state project tobe constructed with North Carolina Highway Trust Funds. In
a case
where only state highway funds are involved,
an action to challenge the sufficiency of the
environmental impact statement would be ripe
when the Board of Transportation approved the
location of the highway corridor following the
preparation of a final environmental impact
statement [FEIS].
Orange County, 46 N.C. App. at 367, 265 S.E.2d at 903. Here, NCDOT
approved the location of Alternative A for TIP R-210 and
published a FEIS on 1 December 1995. At this point, NCDOT had
completed the decision making process and the result directly
affected the parties. As such, NCDOT's action was sufficiently
final when it issued the FEIS on 1 December 1995. See Warren
County v. State of N.C., 528 F.Supp. 276, 284 (E.D.N.C. 1981)
(issuance of EIS was final agency determination).
We recognize that there is a disagreement between the parties
as to whether the ROD constituted NCDOT's final agency decision in
the case before us. [I]t appears well-established that a [FEIS]
or the ROD issued thereon constitute the 'final agency action'. .
. . Sierra Club, 120 F.3d 623, 631. Final agency action refers
to the issuance of a final agency decision. See Howell v.
Morton, 131 N.C. App. 626, 634, 508 S.E.2d 804, 809 (1998). Under
the Federal-Aid Highways Act (FAHA), 23 U.S.C. § 101 et seq.,
FHWA has final approval authority over a state agency's FEIS, and
FHWA memorializes approval of that FEIS and project location by
issuing a ROD. See Jersey Heights Neighborhood Ass'n, 174 F.3d
180, 184. However, [a]pproval of the [FEIS] is not a[] [FHWA]Action . . . and does not commit the [FHWA] to approve any future
grant request to fund the preferred alternative. 23 C.F.R. §
771.125 (e); see also 23 C.F.R. § 771.113 (b). Here, NCDOT
submitted the FEIS to FHWA for location approval to preserve the
State's option of obtaining federal funding in the future. FHWA's
subsequent issuance of the ROD did not change the nature of TIP R-
210, a state project, into a federal project. Accordingly, for
purposes of this appeal, we hold that the FEIS, not the ROD, was
NCDOT's final agency decision.
Fourth, as a general rule a party must exhaust all applicable
administrative remedies before filing in the superior court.
Jackson v. Dept. of Administration, 127 N.C. App. 434, 436, 490
S.E.2d 248, 249 (1997). NCEPA has no language providing a party
with a right to challenge a FEIS. However, the parties have at
least two administrative remedies available. See Orange County, 46
N.C. App. at 376-77, 265 S.E.2d at 907-08 (one available
administrative remedy, 1 N.C.A.C. § 25.0106 (the right to petition
the Governor), cited in Orange County has since been repealed).
For instance, citizens have the opportunity to participate in
the agency's decision making process by filing comments,
requesting a public hearing, and speaking at the public hearing.
See Empire Power Co. v. N.C. Dept. of E.H.N.R., 112 N.C. App. 566,
572-73, 436 S.E.2d 594, 599 (1993), rev'd on other grounds, 337
N.C. 569, 447 S.E.2d 768 (1994); see also 1 N.C.A.C. § 25.0604
(Public Hearing). Here, defendants had the opportunity to
participate in NCDOT's decision making process. The recordreflects that many citizens did participate by filing comments and
speaking at NCDOT hearings. However, the record is unclear as to
whether these defendants actually participated; although, the
record does show that defense counsel did actively participate.
Additionally, G.S. § 136-62 provides that [t]he citizens of
th[is] State shall have the right to present petitions to the board
of county commissioners, and through the board to [NCDOT],
concerning additions to the system and improvement of roads.
While the record is not clear as to whom the petition was
presented, the record does reflect that a citizens' petition in
opposition to Alternative A for TIP R-210 was before NCDOT.
Accordingly, we hold that the available administrative remedies
were exhausted here.
Finally, no other adequate procedure for judicial review of
defendants' NCEPA challenge was provided by any other statute.
Defendants contend that G.S. § 136-108 provides an adequate
procedure for judicial review of their counterclaims. Section 136-
108 provides that in condemnation proceedings, the trial court may
hold a hearing to determine any and all issues raised by the
pleadings other than the issue of damages . . . . Defendants
contend that their NCEPA challenge is an issue that may be heard
and determined in such a hearing. However, the environmental
documents at issue were prepared for the administrative process by
which NCDOT selected Alternative A for TIP R-210, not for the
condemnation proceeding. Because review of an environmental
document may be undertaken only in connection with review of the
agency action for which the document was prepared, see G.S. § 113A-13 and 1 N.C.A.C. § 25.0605(f), section 136-108 does no
t provide an
adequate procedure for judicial review of defendants' NCEPA
challenge. The NCAPA does provide for judicial review.
In sum, defendants have satisfied the five requirements for
judicial review of an adverse agency determination under G.S. §
150B-43. Pursuant to G.S. § 150B-45,
[t]o obtain judicial review of a final
decision under this Article, the person
seeking review must file a petition in the
Superior Court of Wake County or in the
superior court of the county where the person
resides. &nb
sp; &
nbsp;
&
nbsp;
The person seeking review must file the
petition within 30 days after the person is
served with a written copy of the decision. A
person who fails to file a petition within the
required time waives the right to judicial
review under this Article.
Defendants failed to file a petition with the superior court within
thirty days of NCDOT's publication of the FEIS on 1 December 1995.
In fact, defendants did not file any claim with the superior court
until they filed their counterclaims in 1999 -- over three years
after NCDOT's publication of the FEIS.
We hold that defendants' contention that they were not
properly served with a written copy of NCDOT's decision is
unavailing. The regulations under NCEPA allow for notice of a FEIS
by publication. See 1 N.C.A.C. § 25.0605(c) (Notice shall also be
given in the Environmental Bulletin, which is published bi-monthly
by the Department of Administration's State Clearinghouse); 1
N.C.A.C. § 25.0212. The record shows that NCDOT issued a news
release announcing the selection of Alternative A for TIP R-210.
This news release was followed by NCDOT's publication of the FEISon 1 December 1995. Unlike defendants' contentions concerning
notice and service of the ROD, defendants do not raise any notice
challenges regarding the FEIS. Accordingly, we hold that the
record supports the conclusion that defendants knew or should have
known of NCDOT's action by 1 December 1995.
Defendants' failure to timely comply with the NCAPA's judicial
review requirements is sufficient basis to affirm the trial court's
dismissal of their counterclaims. See Citizens Roadways, 145 N.C.
App. ___, 550 S.E.2d 253 (affirming trial court's dismissal of
complaint against NCDOT alleging violations of NCEPA filed over
thirty days after NCDOT's issuance of a Finding of No Significant
Impact (FONSI)). Accordingly, we affirm that part of the trial
court's order dismissing defendants' counterclaims for lack of
subject matter jurisdiction pursuant to Rule 12(b)(1).
Having carefully reviewed the remainder of the issues
addressed by NCDOT and defendants in their briefs, we conclude that
the trial court did not err. Therefore, we affirm the remainder of
the trial court's orders.
Affirmed.
Judges TIMMONS-GOODSON and THOMAS concur.
*** Converted from WordPerfect ***