Appeal by petitioner from orders entered 16 February 2001 and
12 March 2001 by Judge James Lanning in Lincoln County Superior
Court. Heard in the Court of Appeals 13 May 2002.
Pendleton & Pendleton, P.A., by Jeffrey A. Taylor, for
petitioner-appellant.
Thomas B. Kakassy, P.A., by Thomas B. Kakassy, for respondent-
appellee.
TYSON, Judge.
Lincoln County Department of Social Services (petitioner)
appeals from the superior court's orders that affirmed the order of
Administrative Law Judge Meg Scott Phipps (ALJ Phipps).
I. Facts
Petitioner terminated Pat Hovis (respondent) from her
employment on 9 September 1998. Respondent appealed the decision
and filed a petition for a contested case hearing with the Office
of Administrative Hearings (OAH) on 7 October 1998. ALJ Phipps
issued a scheduling order on 12 October 1998 that set the discovery
deadline for 15 February 1999, and noticed a hearing for 1 March
1999.
By letters dated 9 February and 26 February 1999, respondentrequested petitioner to comply with discovery requests and with ALJ
Phipps' scheduling order. Petitioner failed to respond to
respondent's requests. Respondent filed a motion for sanctions
against petitioner and for a continuance on 8 March 1999. On 16
March 1999, ALJ Phipps issued an order requiring petitioner to show
cause why sanctions should not be imposed and to respond to
respondent's discovery requests no later than 2 April 1999. ALJ
Phipps received no response from petitioner.
ALJ Phipps issued a final decision which reinstated respondent
to her former position, awarded her back pay, front pay, and
attorney's fees on 8 April 1999. Respondent then filed a request
to supplement judgment with the OAH to determine damages. ALJ
Phipps issued a request to petitioner for a response to
respondent's motion on 24 May 1999, ordering petitioner to respond
by 3 June 1999. Unbeknownst to ALJ Phipps and respondent,
petitioner had filed a petition for judicial review pursuant to
G.S. § 150B-46 on or about 10 May 1999.
Superior Court Judge Robert P. Johnston reviewed the record,
determined it inadequate, and entered an order remanding the case
to OAH for clarification. On remand ALJ Phipps was on
administrative leave and Chief Administrative Law Judge Julian Mann
assigned the case to Administrative Law Judge James L. Conner, II
(ALJ Conner). On 15 June 2000, ALJ Conner conducted a hearing
and signed a protective order allowing respondent to copy
petitioner's files only for preparation of respondent's case. On
15 November 2000, ALJ Conner issued supplementary findings andconclusions and an amended final order upholding the decision by
ALJ Phipps.
Superior Court Judge James Lanning conducted a second hearing
on petitioner's original petition for judicial review on 19 January
2001. The superior court entered an order on 16 February 2001
upholding the decision of ALJ Phipps as supplemented by ALJ Conner.
Judge Lanning subsequently entered a corrected and amended order on
12 March 2001. Petitioner appeals.
II. Issues
Petitioner assigns as error the trial court's denial of its
requested relief and argues (1) no rational basis existed for the
ALJ's amended final order and that it was an abuse of discretion,
(2) the ALJ's decision was in excess of statutory authority.
A. Abuse of Discretion
To support its contention, petitioner claims that the record
contains no evidence of any formal discovery requests of any nature
ever being made by [respondent]. It also claims that it never
received the order to show cause.
The extensive findings of fact in this case demonstrates that
a scheduling order set discovery deadlines, a telephone conference
call with all parties present discussed discovery, and that
respondent reminded petitioner of discovery in two separate letters
prior to ALJ Phipps issuing the order to show cause.
ALJ Conner's supplementary findings found that the
certificate of service establishes that it was mailed to the same
address to which all other mailings in the matter were sent. Mr.Taylor conceded at the investigatory hearing that he had received
all other mailings from this Office in the matter. There is
substantial evidence in the record that shows petitioner had
sufficient notice of the order to show cause prior to the hearing,
and failed to appear. Also, petitioner was informed of pending
discovery requests on numerous prior occasions. This assignment of
error is overruled.
B. Statutory Authority
Petitioner argues that the ALJ's authority derives from
Chapter 126 of the North Carolina General Statutes, is advisory in
nature, and is not a final decision. We disagree. The record
fails to show where petitioner protested Judge Lanning's authority
to review ALJ Phipps' final agency decision on the procedural
grounds that petitioner now argues here.
An order of the ALJ issued pursuant to a written pre-hearing
motion granting a party's requested relief for failure of the other
party to comply with procedural requirements is a final decision
under N.C. Gen. Stat. § 150B-36(c)(3) (2001). Petitioner is
entitled to immediate judicial review pursuant to G.S. § 150B-43.
N.C. Gen. Stat. § 150B-43 (2001). See Hillis v. Winston-Salem
State University, 144 N.C. App. 441, 443, 549 S.E.2d 556, 557
(2001); Fearrington v. University of North Carolina at Chapel Hill,
126 N.C. App. 774, 778, 487 S.E.2d 169, 172 (1997).
The plain language of G.S. § 150B-36(c)(3) grants ALJs the
statutory authority to allow a party's requested relief.
(c) The following decisions made by
administrative law judges in contested casesare final decisions appealable directly to
superior court under Article 4 of this
Chapter:
. . . .
(3) An order entered pursuant to a written
prehearing motion that either dismisses the
contested case for failure of the petitioner
to prosecute or grants the relief requested
when a party does not comply with procedural
requirements.
N.C. Gen. Stat. § 150B-36(c)(3).
The superior court's scope of review under G.S. § 150B-51(b)
includes determining whether the decision of an ALJ contains errors
of law, is supported by substantial evidence, and is neither
arbitrary nor capricious. N.C. Gen. Stat. § 150B-51(b)(2001). We
hold that the trial court did not err by upholding ALJ Phipps'
order, as supplemented by ALJ Conner's additional findings of fact.
The order of the trial court is affirmed.
Affirmed.
Chief Judge EAGLES and Judge McGEE concur.
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