1. Appeal and Error_appealability_denial of motion to dismiss_sovereign immunity
The denial of a motion to dismiss that asserted sovereign immunity was immediately
appealable.
2. State_negligence action_State as third party defendant--direct action not barred
Plaintiff was not barred by sovereign immunity or the Tort Claims Act from directly
asserting a claim against third-party defendant DOT for negligently maintaining a city street. The
Tort Claims Act constitutes a waiver of sovereign immunity, the provisions of the Act were
modified by Rule 14(c) of the North Carolina Rules of Civil Procedure to allow the State to be
made a third party, and Rule 14(a) allows a plaintiff to assert claims directly against a third-party
defendant if those claims arose from the same transaction as plaintiff's claim against the original
defendant.
3. State_third-party defendant_direct claim against State
There is no conflict between statutes requiring resolution of specific versus general
language in the provisions of the Tort Claims Act and the provisions of N.C.G.S. § 1A-1, Rule
14, which concern a direct negligence claim against the State after it has been added as a third
party. The issue is legislative intent, which clearly was to allow plaintiffs to assert claims directly
against the State when the State had been added to the lawsuit by a third-party complaint.
Taylor Law Office, by W. Earl Taylor, Jr. for plaintiff-
appellees.
Walter, Clark, Allen, Herrin & Morano, by Jerry A. Allen, Jr.
for defendant/third-party plaintiff.
Roy Cooper, Attorney General, by Amar Majmundar, Special
Deputy Attorney General, for the State.
STEELMAN, Judge.
The issue before this Court, one of first impression, is
whether a plaintiff may assert a claim against the State as a
third-party defendant in our trial courts. Based on the facts
presented in this case, we answer in the affirmative.
This appeal arises out of a motor vehicle collision that took
place on 13 May 2001 in Elm City, North Carolina. The accident
involved a stop sign that was allegedly obstructed from the view of
motorists by tree limbs. Plaintiffs filed a complaint in the
Superior Court of Wilson County seeking monetary damages for
injuries caused by the negligence of defendant Shawan L. Batts, the
driver of the car in which plaintiffs were passengers, and the Town
of Elm City. Defendant Batts filed a cross-claim for indemnity and
contribution against the Town of Elm City and also a third-party
complaint against North Carolina Department of Transportation
(NCDOT), seeking indemnity and contribution. The third-party
complaint alleged that NCDOT was negligent in maintaining a public
street and failing to remove tree limbs that obstructed motorists'
view of the stop sign. Plaintiffs subsequently obtained leave of
court to amend their complaint to add NCDOT as a party defendant
and dismissed their claims against the Town of Elm City.
Plaintiffs' allegations against NCDOT in their amended complaint
are identical to those of defendant Batts in her third-party
complaint. NCDOT filed a motion to dismiss plaintiffs' claim,
asserting sovereign immunity as an affirmative defense. The trial
court denied this motion. NCDOT appeals.
[1] Initially, we note that this appeal is properly before the
Court in accordance with N.C. Gen. Stat. § 1-277(b), which allowsany interested party an immediate appeal from an adverse ruling as
to the jurisdiction of the court over the person or property of the
defendant. N.C. Gen. Stat. § 1-277(b) (2001). Moreover, appeals
raising issues of governmental or sovereign immunity affect a
substantial right sufficient to warrant immediate appellate
review. Price v. Davis, 132 N.C. App. 556, 558-59, 512 S.E.2d
783, 785 (1999).
[2] In its first assignment of error, NCDOT argues that
plaintiff is barred by sovereign immunity and by the Tort Claims
Act (N.C. Gen. Stat. § 143-91) from directly asserting a claim
against it. We disagree.
As a general rule, the State enjoys sovereign immunity, which
protects it from liability for negligent conduct on the part of its
agents or employees. Gammons v. North Carolina Dep't of Human
Resources, 344 N.C. 51, 472 S.E.2d 722 (1996). However, this
immunity can be abrogated by an express waiver of the General
Assembly. See Midgett v. N.C. DOT, 152 N.C. App. 666, 568 S.E.2d
643, cert. denied, 356 N.C. 438, 572 S.E.2d 786 (2002). The Tort
Claims Act constitutes such a waiver, allowing claims against the
State up to the limits set forth in sections 143-291(a1), 143-299.2
and 143-299.4. It also confers exclusive jurisdiction over tort
claims against the State upon the North Carolina Industrial
Commission. N.C. Gen. Stat. 143-291(a) (2003). See also Guthrie
v. North Carolina State Ports Authority, 307 N.C. 522, 539-40, 299
S.E.2d 618, 628 (1983); Teachy v. Coble Dairies, Inc., 306 N.C.
324, 332, 293 S.E.2d 182, 187 (1982). Statutes waiving sovereignimmunity must be strictly construed. Selective Ins. Co. v. NCNB
Nat'l Bank, 324 N.C. 560, 563, 380 S.E.2d 521, 523 (1989).
The provisions of the Tort Claims Act were modified and
superceded by the provisions of Rule 14(c) of the North Carolina
Rules of Civil Procedure. Rule 14 provides:
(c) Rule applicable to State of North
Carolina. -- Notwithstanding the provisions of
the Tort Claims Act, the State of North
Carolina may be made a third party under
subsection (a) or a third-party defendant
under subsection (b) in any tort action. In
such cases, the same rules governing liability
and the limits of liability of the State and
its agencies shall apply as is provided for in
the Tort Claims Act.
N.C. Gen. Stat. § 1A-1, Rule 14(c) (2003). Subsection (c) was not
originally a part of Rule 14. It was added in 1975 by a session
law titled An Act to Permit the State to be Interpled in Tort
Actions. 1975 N.C. Sess. Laws, ch. 587, § 1. Presently and at
the time of the 1975 amendment, Rule 14 contained subsection (a),
which states in pertinent part:
The plaintiff may assert any claim against the
third-party defendant arising out of the
transaction or occurrence that is the subject
matter of the plaintiff's claim against the
third-party plaintiff, and the third-party
defendant thereupon shall assert his defenses
as provided in Rule 12 and his counterclaims
and crossclaims as provided in Rule 13.
N.C. Gen. Stat. § 1A-1, Rule 14(a) (2003).
Under the clear language of Rule 14(a), once a third-party
defendant is added to a lawsuit, a plaintiff may assert claims
directly against the third-party defendant, subject only to the
limitation that the claim arose out of the same transaction oroccurrence as the plaintiff's original claim against the original
defendant.
The Tort Claims Act waives sovereign immunity. By the
addition of Rule 14(c), the General Assembly created an exception
to the general rule that claims against the State under the Tort
Claims Act must be pursued before the Industrial Commission as to
third-party claims. The 1975 amendment to Rule 14 does not place
any limitations on the application of Rule 14(a) to claims against
the State. Rule 14 must be construed as a whole and not in
separate parts. By adding subsection (c) to Rule 14, the General
Assembly waived the State's immunity to claims brought by a
plaintiff under Rule 14(a), subject to the express limitations
contained therein. It is always presumed that the legislature
acted with care and deliberation and with full knowledge of prior
and existing law. State v. Benton, 276 N.C. 641, 658-59, 174
S.E.2d 793, 804-05 (1970). Since the claims asserted by plaintiff
against NCDOT are identical to those asserted by defendant Batts
against NCDOT, and since these claims arise out of the same
transaction and occurrence that is the subject matter of
plaintiff's original claim, plaintiff is permitted to assert its
claims against NCDOT under the provisions of Rule 14.
Allowing plaintiff to assert claims directly against NCDOT is
also consistent with the general purposes of Rule 14. In Heath v.
Board of Comm'rs, 292 N.C. 369, 376, 233 S.E.2d 889, 893 (1977),
cert. denied, 297 N.C. 453, 256 S.E.2d 807 (1979) (citations
omitted), our Supreme Court stated that:
The purpose of Rule 14 is to promote
judicial efficiency and the convenience ofparties by eliminating circuity of action.
When the rights of all three parties center
upon a common factual setting, economies of
time and expense can be achieved by combining
the suits into one action. Doing so eliminates
duplication in the presentation of evidence
and increases the likelihood that consistent
results will be reached when multiple claims
turn upon identical or similar proof.
Additionally, the third-party practice
procedure is advantageous in that a
potentially damaging time lag between a
judgment against defendant in one action and a
judgment in his favor against the party
ultimately liable in a subsequent action will
be avoided. In short, Rule 14 is intended to
provide a mechanism for disposing of multiple
claims arising from a single set of facts in
one action expeditiously and economically.
In Selective Ins. Co. v. NCNB Nat'l Bank, 324 N.C. 560, 380
S.E.2d 521 (1989), our Supreme Court allowed the assertion of a
crossclaim under Rule 13(g) against the State in an action to which
it was already a party. The court noted that the provisions for
assertion of a crossclaim under Rule 13 and a third-party complaint
were comparable. The court stated that [a]llowing claims against
the State for contribution and indemnification to be asserted as
crossclaims accomplishes the legislative purpose behind Rule 13(g)
and avoids absurd or bizarre consequences, by preventing the
necessity of a second action before the Industrial Commission to
settle claims between the coparties. Id. at 566, 380 S.E.2d at
525.
NCDOT would have this Court hold that while it is permissible
for Batts, a defendant and third-party plaintiff, to assert claims
against it under Rule 14(c), plaintiffs must assert identical
claims in a different forum (the Industrial Commission). This
position is contrary to the express provisions of Rule 14 and therulings of our Supreme Court in Heath and Selective. This
assignment of error is without merit.
[3] In its second assignment of error, NCDOT argues that the
specific provisions of the Tort Claims Act control over the general
terms of Rule 14 and cannot be construed as a waiver of sovereign
immunity. We disagree.
As noted above, Rule 14(c) creates an exception to the general
rule that claims against the State must be litigated before the
Industrial Commission pursuant to the Tort Claims Act.
A specific statute will only control over a general statute
when there is a conflict between those statutes. See Meyer v.
Walls, 122 N.C. App. 507, 513, 471 S.E.2d 422, 427 (1996), aff'd in
part, rev'd and remanded on other grounds in part, 347 N.C. 97, 489
S.E.2d 880 (1997). In the instant case, there is no conflict
between Rules 14(a) and (c). Accordingly, this is not a general
versus specific language issue. The pertinent issue here is the
overall legislative intent. The intent of the General Assembly may
be found first from the plain language of the statute, then from
the legislative history, the spirit of the act and what the act
seeks to accomplish. Coastal Ready-Mix Concrete Co. v. Board of
Comm'rs, 299 N.C. 620, 629, 265 S.E.2d 379, 385, reh'g denied, 300
N.C. 562, 270 S.E.2d 106 (1980)). Further, it is a well-known rule
of construction that provisions in a statute should be construed
together and reconciled with each other whenever possible. State
ex rel. Commissioner of Ins. v. North Carolina Rate Bureau, 300
N.C. 381, 400, 269 S.E.2d 547, 561 (1980). Therefore, all parts of
the same statute dealing with the same subject are to be construedtogether as a whole, and every part thereof must be given effect if
this can be done by any fair and reasonable interpretation. Duke
Power Co. v. Clayton, 274 N.C. 505, 164 S.E.2d 289 (1968).
As discussed above, it was the clear intent of the General
Assembly to allow plaintiffs to assert claims directly against the
State when the State had been previously added to the lawsuit by a
third-party complaint. This assignment of error is without merit.
AFFIRMED.
Chief Judge EAGLES and Judge MCCULLOUGH concur.
*** Converted from WordPerfect ***