An unpublished opinion of the North Carolina Court of Appeals does not constitute controlling legal authority. Citation is disfavored, but may be permitted in accordance with the provisions of Rule 30(e)(3) of the North Carolina Rules of Appellate Proced
ure.
NO. COA01-1578
NORTH CAROLINA COURT OF APPEALS
Filed: 21 January 2003
CHARLES E. BROWN,
Plaintiff,
v
.
Durham County
No. 99 CVS 3072
LIBERTY MUTUAL INSURANCE COMPANY,
Defendant.
Appeal by plaintiff from orders entered 23 July 2001
and 28
August 2001 by Judge Narley L. Cashwell in Durham County Superior
Court. Heard in the Court of Appeals 11 September 2002.
Hayes Hofler & Associates, P.A., by R. Hayes Hofler, for
plaintiff appellant.
Cranfill, Sumner & Hartzog, L.L.P., by Jaye E. Bingham, for
defendant appellee.
McCULLOUGH, Judge.
On 22 July 1996, plaintiff Charles Brown was involved in a
motor vehicle accident in Durham, North Carolina. The car that
collided with plaintiff was later discovered to be stolen, and the
driver fled the scene. On 8 July 1999, plaintiff filed suit
against his uninsured motorist coverage carrier, Liberty Mutual
Insurance Company (Liberty Mutual), and alleged that the uninsured
motorist's negligence proximately caused his head injury.
Plaintiff further alleged he suffered depression and a decrease in
his cognitive abilities due to the accident. On 9 July 1999, the
complaint and summons were served upon the North CarolinaCommissioner of Insurance, who forwarded the documents to Liberty
Mutual's office in Massachusetts. Due to inadvertence, the
complaint and summons were not forwarded to the appropriate
regional office in Charlotte, North Carolina, until 1 November
1999. Meanwhile, on 30 August 1999, plaintiff obtained an entry of
default against Liberty Mutual because Liberty Mutual failed to
respond to the complaint in due time.
On 14 January 2000, plaintiff was served with Liberty Mutual
Insurance Company's First Interrogatories to Plaintiff and
Liberty Mutual Insurance Company's First Request for Production of
Documents to Plaintiff. The first interrogatories asked plaintiff
to name (1) all expert witnesses, (2) all medical practitioners who
examined or treated him for injuries alleged as a result of the
accident, and (3) each medical practitioner who examined or
treated [him] for any mental or physical condition since 1970.
The first request for production of documents requested plaintiff
to provide, among other things,
[t]he office records of each physician or
other health care providers (including but not
limited to psychiatrists, psychologists, and
chiropractors) consulted by plaintiff since
1970. This request includes but is not
limited to records of all such health care
providers who have treated plaintiff for any
injury alleged to have been the result of this
accident.
On 31 January 2000, plaintiff's attorney, Mr. Hayes Hofler,
informed Liberty Mutual that plaintiff's head injury had worsened,
that he suspected plaintiff had a brain injury, and that plaintiff
was being referred to Dr. Thomas Gualtieri in Chapel Hill, NorthCarolina, for an evaluation to determine whether plaintiff suffered
a closed head injury in the 22 July 1996 accident. Plaintiff asked
Liberty Mutual to help pay the costs of the evaluation.
Thereafter, on 16 February 2000, the parties entered into a
consent order whereby plaintiff agreed to set aside the entry of
default he obtained for Liberty Mutual's failure to answer the
complaint in due time and Liberty Mutual agreed to withdraw its
third and fourth defenses (objecting to improper party defendant,
improper service of process, and statute of limitations).
On 27 March 2000, Liberty Mutual served plaintiff with a
second request for production of documents. Included was a request
for [c]opies of all records and documents relative to any mental
health counseling, psychological counseling or counseling of any
nature received by plaintiff, either before or after the incident
referred to in the Complaint, for any marital issues, emotional
issues or any other reason[,] as well as the 'raw data' from any
psychological, neuropsychological, psychiatrist or any other mental
health testing received by plaintiff either before or after the
incident referred to in the Complaint. On 29 March 2000, the
trial court entered an order requiring plaintiff to respond to
Liberty Mutual's second request for documents by 27 April 2000.
On 21 September 2000, Liberty Mutual's attorney, Ms. Leigh Ann
Smith, wrote to plaintiff's attorney, Mr. Hayes Hofler, confirming
that Mr. Hofler would request plaintiff's medical records from his
treatment with Dr. Thomas Gualtieri at North Carolina
Neuropsychology, P.A. Mr. Hofler stated he promptly providedLiberty Mutual with copies of written evaluations by doctors, but
also informed Ms. Smith that the raw data could only be delivered
from one psychologist to another and was therefore unattainable.
On 29 November 2000, Liberty Mutual sent Dr. Gualtieri an executed
medical release signed by plaintiff and requested plaintiff's
medical records. A copy of the letter was sent to Mr. Hofler,
along with a separate letter asking Mr. Hofler to continue his
efforts to obtain the medical records. On 5 December 2000, Liberty
Mutual's attorney faxed a copy of the 29 November 2000 letter to
Dr. Gualtieri again; the cover sheet stated, We need these records
as soon as possible because this matter is set for trial on January
2, 2001.
On 19 December 2000, Liberty Mutual filed a Motion to Compel
and Motion to Continue Mediation and Trial because it had
previously made several requests for Dr. Gualtieri's records but
had only received the record from plaintiff's first visit with Dr.
Gualtieri. Plaintiff did not respond to Liberty Mutual's second
request for production of documents and provided incomplete
responses to the first set of interrogatories and to the first
request for production of documents. On 19 December, the trial
court entered an order giving plaintiff until 28 February 2001 to
respond to Liberty Mutual's discovery requests. The order also set
a new mediation deadline and a new trial date. Plaintiff's
attorney consented to these actions. Judge Anthony Brannon
considered Liberty Mutual's Motion to Compel. On 2 April 2001,
Judge Brannon entered an Order Compelling Discovery, which stated: A. Plaintiff will write to the
medical providers listed in answers to
Interrogatories and verify whether or not
there are records as to pre-accident medicals
for the last ten (10) years.
B. North Carolina Neuropsychology,
P.A. is hereby ordered to produce any and all
records pertaining to Charles Brown,
including, but not limited to, treatment
records, treatment evaluations and
psychotherapy records.
C. Plaintiff shall respond to
defendant's Second Request for Production of
Documents No. 3 regarding pharmacy records
preceding the accident for ten (10) years and
post-accident records.
D. Plaintiff will respond to
defendant's discovery within twenty (20) days
of the date of the signing of this Order.
Also on 2 April 2001, counsel for both parties deposed Dr.
Lynda Johnson and Dr. Gualtieri. Both doctors brought their
records with them; consequently, Liberty Mutual was able to view
them, but copies were not made at that time. Liberty Mutual's
attorney contacted Mr. Hofler a number of times after 2 April to
request the medical records, but was told Liberty Mutual should
have copied them at the deposition. On 9 May 2001, plaintiff was
served Liberty Mutual Insurance Company's Third Request for
Production of Documents. The third request consisted of one
question and sought production of plaintiff's military file. The
file was requested, because during his deposition, Dr. Gualtieri
testified that plaintiff's symptoms could have been caused by post-
traumatic stress syndrome related to his military service in
Vietnam. Additionally, Dr. Gualtieri noted plaintiff's symptomscould have been caused by white matter disease of the brain, based
upon his family history and a history of hypertension.
On 30 May 2001, Liberty Mutual wrote a letter to Mr. Hofler to
again inform him that Liberty Mutual had not received Dr.
Gualtieri's records. On 10 July 2001, Liberty Mutual filed a
second Motion to Compel and Motion for Relief under Rule 37 which
requested that plaintiff produce the records of North Carolina
Neuropsychology, P.A., and that plaintiff be sanctioned for failing
to produce those documents. The motion was argued on 12 July 2001
before Judge Narley Cashwell; however, plaintiff's attorney did not
appear at the motion hearing. After considering defendant's
argument, the trial court stated:
THE COURT: All right. This is before
the Court upon the defendant's motion to
compel discovery and motion for sanctions
pursuant to Rule 37. Counsel, if you would
prepare me an order, your motion is allowed.
The order to provide military records are to
be provided to you. I'm going to, however,
instead of ten days, I'm going to give them 30
days. There may be a little problem getting
them. I'll give them 30 days from the date of
the order, and as a sanction in this matter
for failure to produce the records I will
prohibit the testimony of Doctor Gualtieri or
any other witness on behalf of -- Judge
Brannon's order was directed to North Carolina
Neuropsychology P.A. -- as to any closed-head
injury.
On 27 July 2001, plaintiff filed a motion for relief pursuant
to N.C. Gen. Stat. § 1A-1, Rule 60(b) (2001) and requested that the
prohibition against testimony from the doctors at North Carolina
Neuropsychology, P.A., be lifted so his treating physicians could
testify at trial. In support of his motion, plaintiff submittedthe affidavit of Dr. Johnson and attached copies of all the medical
records of North Carolina Neuropsychology, P.A. On 17 August 2001,
the trial court denied plaintiff's motion for relief. On 22 August
2001, plaintiff appealed from both the 23 July 2001 order
prohibiting the doctors' testimony and the trial court's order
announced in open court on 20 August 2001 (reduced to writing and
entered 28 August 2001) denying his motion for relief.
On appeal, plaintiff argues the trial court abused its
discretion by (I) sanctioning him by prohibiting his only treating
health care providers from testifying at trial; and (II) denying
his Rule 60(b) motion for relief after he presented evidence that
he had done everything in his power to provide defendant with the
requested discovery. For the reasons set forth herein, we disagree
with plaintiff's arguments and affirm the actions of the trial
court.
Prohibition of Doctors' Testimony
By his first assignment of error, plaintiff argues the trial
court abused its discretion when it sanctioned plaintiff by
prohibiting his only treating health care providers from testifying
at his trial. Defendant, on the other hand, argues that Rule 37(b)
allows the trial court to impose sanctions for noncompliance with
discovery requests and orders, as was the case here. Upon review,
we agree with defendant.
Before turning to the facts at hand, we note that, although
this appeal is interlocutory, we are able to address the merits of
this assignment of error, because when an order is enforced bysanctions pursuant to N.C. Gen. Stat. § 1A-1, Rule 37(b) (2001),
the order is appealable as a final judgment. Walker v. Liberty
Mut. Ins. Co., 84 N.C. App. 552, 554-55, 353 S.E.2d 425, 426
(1987).
N.C. Gen. Stat. § 1A-1, Rule 37(b) (2001) grants the trial
judge discretion to impose sanctions upon a party for failure to
comply with discovery processes. Gardner v. Harriss, 122 N.C.
App. 697, 699, 471 S.E.2d 447, 449 (1996). The choice of
sanctions under Rule 37 is within the trial court's discretion and
will not be overturned on appeal absent a showing of abuse of that
discretion. Brooks v. Giesey, 106 N.C. App. 586, 592, 418 S.E.2d
236, 239 (1992), aff'd, 334 N.C. 303, 432 S.E.2d 339 (1993). See
also Cheek v. Poole, 121 N.C. App. 370, 374, 465 S.E.2d 561, 564
(1996), cert. denied, 343 N.C. 305, 471 S.E.2d 68 (1996).
The sanction provision [of Rule 37] permits the court to make
such orders as are just upon a party's failure to obey an order
to provide or permit discovery, including refusing to permit the
disobedient party to introduce the matters in question into
evidence. Bumgarner v. Reneau, 332 N.C. 624, 631, 422 S.E.2d 686,
690 (1992). Although sanctions can be severe, if they are among
those expressly authorized by Rule 37, this Court cannot hold they
constitute an abuse of discretion unless plaintiff shows specific
evidence of injustice. Roane-Baker v. Southeastern Hospital Supply
Corp., 99 N.C. App. 30, 37, 392 S.E.2d 663, 667 (1990), disc.
review denied, 328 N.C. 93, 402 S.E.2d 418 (1991). See also
Segrest v. Gillette, 96 N.C. App. 435, 442, 386 S.E.2d 88, 92(1989), reversed on other grounds, 331 N.C. 97, 414 S.E.2d 334
(1992), reh'g denied, 331 N.C. 386, 417 S.E.2d 791 (1992) (where
defendants were properly served with plaintiff's interrogatories
about expert testimony, a crucial aspect of the medical malpractice
case, [t]he fact that plaintiff's interrogatories were ultimately
answered, however late, does not prevent the court from imposing
sanctions under Rule 37(d) on plaintiff's motion.).
Plaintiff contends that he went to great expense to employ Dr.
Johnson and Dr. Gualtieri and that they were the only witnesses who
could testify as to whether he suffered a brain injury and as to
how they treated him. Plaintiff points out that Liberty Mutual has
been in possession of all the medical records since 27 July 2001.
Consequently, he maintains there is no need for either an order to
compel plaintiff to produce same or to sanction plaintiff for
failing to produce same because Liberty Mutual's motion for
sanctions under Rule 37 was not filed until 10 July 2001, three
months after Dr. Johnson and Dr. Gualtieri produced their records
at their depositions. Thus, plaintiff argues, even though the
discovery responses were untimely, the trial court's sanctions
constituted an abuse of discretion, because the discovery responses
were served (at the 2 April 2001 depositions of Dr. Gualtieri and
Dr. Johnson) prior to the making or service of the motion
requesting sanctions. See Cheek v. Poole, 121 N.C. App. at 373-74,
465 S.E.2d at 563-64.
Additionally, plaintiff contends his failure to produce the
requested documents was due to inability fostered neither by hisown conduct nor by circumstances within his control, thereby
exempting him from the sanctions of Rule 37(b). See Laing v. Loan
Co., 46 N.C. App. 67, 71, 264 S.E.2d 381, 384, appeal dismissed,
disc. review denied, 300 N.C. 557, 270 S.E.2d 109 (1980).
Plaintiff also contends that the prohibition against having his
doctors testify at trial is an extremely harsh penalty which is
not conducive to a trial on the merits. It would effectively
preclude a trial on the merits. Because plaintiff believes he in
no way caused Liberty Mutual not to obtain the medical records, he
feels the trial court's sanction is unnecessarily punitive and
amounts to an abuse of discretion. We do not agree.
The record indicates that Liberty Mutual repeatedly requested
all of plaintiff's medical records related to the 22 July 1996
accident, as well as plaintiff's medical records from the ten-year
period before the accident. Despite Liberty Mutual's requests,
plaintiff did not produce those records (most notably, Dr.
Gualtieri's records). Judge Brannon's 2 April 2001 order (prompted
by Liberty Mutual's first motion to compel) gave plaintiff twenty
days to respond to Liberty Mutual's discovery requests by
contacting each medical provider listed in the interrogatories and
verifying whether there were medical records for the ten-year
period preceding the accident. Judge Brannon also ordered North
Carolina Neuropsychology, P.A., to produce their records.
Plaintiff's failure to respond resulted in a violation of Judge
Brannon's order. Upon Liberty Mutual's second motion to compel,
Judge Cashwell had authority to prohibit testimony from anyonerelated to North Carolina Neuropsychology, P.A., pursuant to Rule
37(b)(2), and did so. It appears Judge Cashwell's sanctions were
supported by reason -- Liberty Mutual could not properly defend
against the testimony of those doctors because the records were
never provided beforehand. We also note that, despite plaintiff's
previous difficulties in obtaining the medical records, he managed
to attach the medical records to his motion for relief only four
days after Judge Cashwell's 12 July 2001 order.
Upon review of the record, we cannot say the trial court
abused its discretion by prohibiting plaintiff from presenting
testimony from doctors at North Carolina Neuropsychology, P.A.
Accordingly, plaintiff's first assignment of error is overruled.
Motion for Relief
By his second assignment of error, plaintiff contends the
trial court abused its discretion when it denied his motion for
relief pursuant to Rule 60(b) after he presented evidence that he
did everything in his power to provide Liberty Mutual with the
requested discovery. Again, we disagree.
As a preliminary matter, plaintiff contends that the order
denying his Rule 60(b) motion was immediately appealable as a final
judgment because the Rule 60(b) motion addressed an order which
itself was based on Rule 37(b) sanctions. When an order is
enforced pursuant to Rule 37(b), it is appealable as a final
judgment.
See Walker, 84 N.C. App. at 554-55, 353 S.E.2d at 426.
Defendant, on the other hand, believes that plaintiff's appeal from
the denial of his Rule 60(b) motion for relief is interlocutorybecause it does not dispose of the case (i.e., it is not a final
judgment) and it does not affect any of plaintiff's substantial
rights.
See Bailey v. Gooding, 301 N.C. 205, 209, 270 S.E.2d 431,
434 (1980). Because the case must still be rescheduled for trial,
defendant believes plaintiff's Rule 60(b) motion for relief is
premature and interlocutory. Alternatively, defendant believes
plaintiff's Rule 60(b) motion for relief fails on the merits.
As
this Rule 60(b) motion turns on the appealability of a sanction
imposed pursuant to Rule 37, it is appealable in the same fashion
as would be an appeal from the imposition of the sanction itself.
See Walker, 84 N.C. App. at 554-55, 353 S.E.2d at 426.
Rule 60(b) provides:
(b)
Mistakes; inadvertence; excusable
neglect; newly discovered evidence; fraud,
etc. -- On motion and upon such terms as are
just, the court may relieve a party or his
legal representative from a final judgment,
order, or proceeding for the following
reasons:
(1) Mistake, inadvertence, surprise, or
excusable neglect;
(2) Newly discovered evidence which by
due diligence could not have been
discovered in time to move for a new
trial under Rule 59(b);
(3) Fraud (whether heretofore
denominated intrinsic or extrinsic),
misrepresentation, or other
misconduct of an adverse party;
(4) The judgment is void;
(5) The judgment has been satisfied,
released or discharged, or a prior
judgment upon which it is based has
been reversed or otherwise vacated,or it is no longer equitable that
the judgment should have prospective
application;
(6) Any other reason justifying relief
from the operation of the judgment.
An order granting or denying relief under North Carolina General
Statutes § 1A-1, Rule 60(b) will not be disturbed on appeal unless
it appears that there was a substantial miscarriage of justice or
that the decision is manifestly unsupported by reason.
Hooper v.
Pizzagalli Construction Co., 112 N.C. App. 400, 407-08, 436 S.E.2d
145, 150 (1993),
disc. review denied, 335 N.C. 770, 442 S.E.2d 516
(1994).
See also Clark v. Penland, 146 N.C. App. 288, 292, 552
S.E.2d 243, 245 (2001).
Plaintiff acknowledges that his attorney, Mr. Hofler, did not
attend the 16 July 2001 hearing on Liberty Mutual's motion to
compel and motion for sanctions under Rule 37(b). In his Rule
60(b) motion, Mr. Hofler acknowledged that he had a mix-up with his
schedule and inadvertently missed the hearing. However, he also
argued that the trial court's sanction did not appear to have been
precipitated by his absence at the hearing. Plaintiff maintains he
always cooperated with Liberty Mutual and tried to produce the
medical records. He further contends the records
were produced --
first at the depositions of Dr. Johnson and Dr. Gualtieri on 2
April 2001, and again as an attachment to plaintiff's motion for
relief on 27 July 2001. Thus, even if the records should have been
produced earlier, plaintiff argues their delivery on 27 July 2001
(approximately one month before the 20 August 2001 trial date) gavedefendant ample time to prepare for trial. Plaintiff also points
to the fact that Liberty Mutual's attorney looked over the records
at the depositions on 2 April 2001 and asked questions based on
those records. Plaintiff further contends that, during the motion
to compel and for sanctions under Rule 37(b), Liberty Mutual's
attorney did not know of and did not inform the trial court of
plaintiff's attorney's efforts at cooperation. In sum, plaintiff
believes the denial of his Rule 60(b) motion constituted a
substantial miscarriage of justice which this Court can and must
reverse.
Plaintiff's Rule 60(b) motion appears to be predicated upon
subsection (b)(1), which allows the court to relieve a party from
a final judgment, order, or proceeding upon a showing of mistake,
inadvertence, surprise, or excusable neglect. In this case,
plaintiff's Rule 60(b) motion focused on his meritorious defenses
to Liberty Mutual's Motion to Compel and Motion for Relief under
Rule 37, which is immediately appealable as previously stated, as
well as the reasons for his attorney's failure to appear at the 16
July 2001 hearing. Plaintiff's attorney stated he was hand-
delivered copies of defendant's motion to compel and notice of
hearing (set for 16 July 2001) while the parties were in Durham
County Superior Court on other matters pertaining to the case.
Plaintiff's attorney acknowledged that he and defendant's counsel
discussed a hearing date of 16 July 2001. However, he had a number
of professional and personal demands upon his time and
inadvertently failed to write the hearing date on his calendar anddid not inform his office staff of the hearing date. Consequently,
he was out of town on 16 July 2001 and did not attend the hearing.
Our Court has previously stated that
an attorney's negligence in handling a case
constitutes inexcusable neglect and should not
be grounds for relief under the excusable
neglect provision of Rule 60(b)(1). . . .
Allowing an attorney's negligence to be a
basis for providing relief from orders would
encourage such negligence and present a
temptation for litigants to use the negligence
as an excuse to avoid court-imposed rules and
deadlines.
Briley v. Farabow, 348 N.C. 537, 546, 501 S.E.2d 649, 655 (1998);
see also Henderson v. Wachovia Bank of N.C., 145 N.C. App. 621,
626, 551 S.E.2d 464, 468,
disc. review denied, 354 N.C. 572, 558
S.E.2d 869 (2001).
In upholding the trial court's denial of defendant's Rule
60(b) motion, we are also guided by
Parris v. Light, 146 N.C. App.
515, 553 S.E.2d 96 (2001),
disc. review denied, 355 N.C. 349, 562
S.E.2d 283 (2002), a factually similar case in which this Court
upheld the dismissal of the plaintiff's case when her attorney
acted similarly to Mr. Hofler in the case before us. In upholding
the dismissal and finding no abuse of discretion on the part of the
trial court, the
Parris Court stated, This Court has recently
reaffirmed the principle that a trial court must consider an
attorney's conduct in determining whether there is inexcusable
neglect under Rule 60(b).
Id. at 520, 553 S.E.2d at 98;
see also
Henderson, 145 N.C. App. 621, 551 S.E.2d 464; and
Clark, 146 N.C.
App. 288, 552 S.E.2d 243. We believe this reasoning applies to thefacts before us. Plaintiff's attorney's actions constituted
inexcusable neglect, and the trial court properly denied relief
under Rule 60(b). Accordingly, plaintiff's final assignment of
error is overruled.
After careful examination of the proceedings below and the
arguments of the parties, we conclude the trial court did not abuse
its discretion in sanctioning plaintiff and prohibiting his doctors
from testifying at trial. We further conclude that the trial court
did not err in denying plaintiff's Rule 60(b) motion for relief.
The trial court's orders are hereby
Affirmed.
Judges TYSON and BRYANT concur.
Report per Rule 30(e).
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