Appeal by defendant from judgment entered 12 September 2005 by
Judge Milton F. Fitch, Jr., in Wilson County Superior Court. Heard
in the Court of Appeals 11 October 2006.
Michaux & Michaux, P.A., by Eric C. Michaux, for plaintiff-
appellee.
The North Carolina State Bar, by David R. Johnson, Deputy
Counsel; and A. Root Edmonson, Deputy Counsel, for defendant-
appellant.
LEVINSON, Judge.
The North Carolina State Bar (defendant), appeals an order
granting in part the summary judgment motion by plaintiff, Willie
D. Gilbert, II. We dismiss the appeal as interlocutory.
The procedural history of the legal proceedings between these
parties is summarized as follows: In July 1999 defendant served
plaintiff with a grievance alleging that he had engaged in
professional misconduct in his representation of a client. On 26
April 2000 defendant filed an amended complaint with its
Disciplinary Hearing Commission (DHC). The complaint, 00 DHC 03,
alleged that, on a number of occasions between 1997 and 1999,
plaintiff engaged in professional misconduct in his representationof several clients. A hearing was conducted on the complaint in
July 2000. In its order filed 1 November 2000, the DHC found
[plaintiff] guilty of violating the following rules of the North
Carolina Revised Rules of Professional Conduct: 1.5 (collecting an illegal
or excessive fee); 1.7 (engaging in a conflict of interest); 8.4(b)
(engaging in criminal conduct that reflects adversely on his
honesty, trustworthiness, or fitness as a lawyer); 8.4©) (engaging
in conduct involving dishonesty, fraud, deceit, or
misrepresentation); 8.4(d) (engaging in conduct prejudicial to the
administration of justice); 8.4(g) (intentionally prejudicing his
clients); and 1.15-2(h) (failing to disburse funds as directed by
client). N.C. State Bar v. Gilbert, 151 N.C. App. 299, 302, 566
S.E.2d 685, 687 (2002), aff'd, 357 N.C. 502, 586 S.E.2d 89 (2003).
The DHC ordered that plaintiff's law license be suspended for five
years, but allowed the last three years' suspension to be stayed if
plaintiff complied with certain requirements. Plaintiff appealed
the DHC's order of discipline, which was affirmed by this Court in
N.C. State Bar v. Gilbert, id.
On 16 April 2002 the defendant filed a civil suit against
plaintiff seeking recovery of monies paid to one of plaintiff's
clients from the North Carolina State Bar's Client Security Fund.
Judgement was entered against plaintiff on 11 March 2004, from
which plaintiff appealed. This Court, in an unpublished opinion,
vacated the trial court's order and remanded for entry of a new
order. N.C. State Bar v. Gilbert, 2006 N.C. App. LEXIS 483.
On 12 September 2003 defendant filed a new complaint with theDHC, in 03 DHC 16. This complaint, which was based on a grievance
from 17 July 2000, alleged that in 1998 plaintiff engaged in
professional misconduct by mishandling $290 of the money in his
business trust fund. Defendant sought plaintiff's disbarment.
On 9 April 2004 plaintiff filed the complaint in the instant
case. Plaintiff asserted that defendant's prosecution of the
complaint in 03 DHC 16 was unlawful, vindictive, and was brought in
bad faith in retaliation for plaintiff's zealous pursuit of
appellate relief in the earlier actions against him. Plaintiff
alleged violation of his rights under the U.S. and North Carolina
constitutions, and sought declaratory and injunctive relief and
compensatory damages. Plaintiff moved for summary judgment, and a
hearing was conducted on 29 November 2004. On 12 September 2005
the trial court entered an order declaring defendant's prosecution
of 03 DHC 16 to be a bad faith and vindictive prosecution brought
in violation of plaintiff's constitutional rights. The court
denied plaintiff's motion for summary judgment on the issue of
whether the prosecution of 03 DHC 16 violated his double jeopardy
rights, and granted summary judgment for defendant on that issue.
The trial court further ordered that plaintiff was entitled to
attorneys' fees and to such compensatory damages as he was able to
prove at trial. The court also entered a permanent injunction
barring defendant from any further prosecution of 03 DHC 16. From
this order defendant has appealed.
Preliminarily, we must determine if this appeal is properly
before us. A judgment is either interlocutory or the final
determination of the rights of the parties. N.C.G.S. § 1A-1, Rule
54(a) (2005). The distinction between the two was addressed in
Veazey v. Durham, 231 N.C. 357, 57 S.E.2d 377 (1950), wherein the
Court stated:
A final judgment is one which disposes of the
cause as to all the parties, leaving nothing
to be judicially determined between them in
the trial court. . . . 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.
Embler v. Embler, 143 N.C. App. 162, 164, 545 S.E.2d 259, 261
(2001) (quoting
Veazey, 231 N.C. at 361-62, 57 S.E.2d at 381
(citations omitted)). In the instant case, the order for summary
judgment states that the trial court expressly retains
jurisdiction over this matter for purposes of any further
proceedings in this case, including but not limited to proceedings
for the enforcement of this Order, for the determination of the
attorneys' fees to be awarded, and proceedings (i.e., a trial) for
the determination of the compensatory damages to be awarded, if
any. We conclude, and defendant concedes, that this is an
interlocutory appeal.
A final judgment is always appealable. However, an
interlocutory order is immediately appealable only under two
circumstances. 'First, if the order or judgment is final as to
some but not all of the claims or parties, and the trial courtcertifies the case for appeal pursuant to N.C. Gen. Stat. § 1A-1,
Rule 54(b), an immediate appeal will lie.' Under Rule 54(b), the
trial judge must certify that there is no just reason for delay.
Since there was no certification in the instant case, this avenue
of interlocutory appeal is closed to defendant.
Embler, id.
(quoting
N.C. Dept. of Transportation v. Page, 119 N.C. App. 730,
734, 460 S.E.2d 332, 334 (1995)). Moreover, in the present case,
the absence of such a certification represents a deliberate
decision on the part of the trial court. The
defendant asked the
court to certify the case for immediate appellate review, and the
trial court expressly denied this request, stating that:
I think that the Court ought to have the whole
matter. We've gone up interlocutory, or
attempted, on the injunction. I think the
Court sent it back. Let's give them the whole
ball of wax when we give it to them. Denied.
The other situation in which an immediate appeal may be taken
from an interlocutory order is when the challenged order affects a
substantial right of the appellant that would be lost without
immediate review.
Embler at 165, 545 S.E.2d at 261 (citation
omitted).
Defendant contends that immediate review is warranted on the
basis of a substantial right. Defendant states that its purpose is
to promulgate and enforce the disciplinary rules governing the
conduct of attorneys[,] and that the [d]eprivation of its power
to enforce the rules affects a substantial right[.] However,
defendant fails to articulate how delaying its appeal until the
case is resolved will jeopardize its ability to enforce the Rulesof Professional Conduct. Nor does defendant identify any
circumstance making review of the particular claim, which alleges
that plaintiff mishandled $290 in 1998, of such urgency that the
appeal cannot be delayed.
Whether a party may appeal an interlocutory order pursuant to
the substantial right exception is determined by a two-step test.
'[T]he right itself must be substantial and the deprivation of that
substantial right must potentially work injury to plaintiff if not
corrected before appeal from final judgment.'
Wood v. McDonald's
Corp., 166 N.C. App. 48, 55, 603 S.E.2d 539, 544 (2004) (quoting
Goldston v. American Motors Corp., 326 N.C. 723, 726, 392 S.E.2d
735, 736 (1990) (other citation omitted)).
In the instant case, the trial court granted summary judgment
on the issue of liability but explicitly retained jurisdiction to
determine the issue of damages. It is well settled that a
judgment which determines liability but which leaves unresolved the
amount of damages is interlocutory and cannot affect a substantial
right:
. . . [If such a] partial . . . judgment is in
error defendant can preserve its right to
complain of the error on appeal from the final
judgment by a duly entered exception. Even if
defendant is correct on its legal position,
the most it will suffer from being denied an
immediate appeal is a trial on the issue of
damages.
Steadman v. Steadman, 148 N.C. App. 713, 714, 559 S.E.2d 291, 292
(2002) (quoting
Johnston v. Royal Indemnity Co., 107 N.C. App. 624,
625, 421 S.E.2d 170, 171 (1992)) (internal citation omitted). In
the case at bar, the orders of the trial court denying defendant'smotion for summary judgment against [plaintiff] and granting
[plaintiff's] motion for summary judgment against defendant
determined the issue of liability and left only the question of
damages for trial. Such an order does not affect a substantial
right and is therefore not immediately appealable[.]
. . .
[Defendant's] appeal must be dismissed.
Freeman v. Reliance Ins.
Co.
; Chamblee v. Reliance Ins. Co., 68 N.C. App. 620, 622, 315
S.E.2d 798, 800 (1984) (citations omitted).
For the reasons discussed above, we conclude that defendant
appeals from an interlocutory order not affecting a substantial
right, and that its appeal must be
Dismissed.
Judges TYSON and BRYANT concur.
Report per Rule 30(e).
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