BETTY G. MORGAN, Administrator
of the Estate of Jettie Stratton,
Plaintiff,
v
.
Cabarrus County
No. 04 CVS 2040
BIG ELM RETIREMENT CENTER, INC.,
Defendant/Third-Party
Plaintiff,
v.
SYMPHONY DIAGNOSTIC SERVICES
NO. 1, INC., d/b/a SYMPHONY
MOBILEX,
Third-Party Defendant.
Jones, Hewson & Woolard, by Lawrence J. Goldman, for Big Elm
Retirement Center, Inc., third-party plaintiff-appellee.
Carruthers & Bailey, P.A., by Joseph T. Carruthers, for
Symphony Diagnostic Services No. 1, Inc. d/b/a Symphony
Mobilex, third-party defendant-appellant.
JACKSON, Judge.
Jettie Stratton (Stratton) was a patient at Big Elm
Retirement Center (Big Elm) in 2002. On or about 12 August 2002,Stratton was injured when she was lowered unexpectedly to the floor
during a transfer from her wheelchair to her bed. She immediately
experienced great pain, and the incident was reported to her
daughter, Betty Morgan. On 18 August 2002, a physician working for
Big Elm ordered x-rays to be done of Stratton's left elbow and her
bilateral lower extremities. Symphony Diagnostic Services No. 1,
Inc., d/b/a Symphony Mobliex (Symphony) had a contract with Big
Elm to provide portable x-ray and other diagnostic medical tests.
Symphony subsequently performed x-rays on Stratton, however
Symphony performed bilateral x-rays only of Stratton's lower
extremities below her knees. The x-rays found no broken bones.
Stratton continued to suffer from extreme pain, and ultimately she
was admitted into a nearby hospital. Upon receiving treatment at
the hospital, Stratton was diagnosed as suffering from a fractured
femur, which had not been diagnosed by Symphony. As a result of
the missed diagnosis of a fractured femur, Stratton experienced
great pain and mental suffering.
On 21 July 2004, Betty Morgan (plaintiff), as administrator
of the estate of Stratton, filed a complaint against Big Elm
alleging claims for injuries sustained by Stratton while she was in
the care of Big Elm. Big Elm served its Answer and a Motion to
Dismiss upon plaintiff on 27 September 2004 via United States mail,
and the same was filed with the trial court on 28 September 2004.
On 15 November 2004, Big Elm filed a third-party complaint against
Symphony alleging claims for breach of contract and negligence,
arising out of the facts and circumstances alleged in Morgan'scomplaint. Symphony was served with the third-party complaint
through the North Carolina Department of the Secretary of State
(Secretary of State) on 19 January 2005, and the Secretary of
State served the complaint directly on Symphony via certified mail
on 28 January 2005. Symphony failed to file any response to Big
Elm's complaint. Big Elm, as the third-party plaintiff, filed a
Motion for Entry of Default and Default Judgment against third-
party defendant Symphony on 9 August 2005. Default was entered
against Symphony on 9 August 2005, and a default judgment in the
amount of $200,000.00 plus interest was entered on 12 December
2005.
On 3 April 2006, Symphony filed a motion to set aside the
entry of default and default judgment, pursuant to Rule 60(b)(1)
and (6). At a hearing on the motion, held 11 May 2006, Symphony
orally moved to set aside the default judgment under Rule 60(b)(4).
In an order filed 24 May 2006, the trial court found that Big Elm's
third-party complaint was not void and denied Symphony's motions.
Symphony appeals from the order denying its motion to set aside
entry of default and default judgment.
On appeal, Symphony only presents arguments regarding the
trial court's denial of its motion to set aside pursuant to Rule
60(b)(4). Thus, this Court will address the denial of the motion
pursuant to Rule 60(b)(4) only, and will not address the denial of
Symphony's Rule 60(b)(1) and (6) motions. N.C. R. App. P. 28(b)(6)
(2006) (Assignments of error not set out in the appellant's brief,
or in support of which no reason or argument is stated or authoritycited, will be taken as abandoned.). Symphony's arguments on
appeal are that the trial court should have granted its Rule
60(b)(4) motion because: (1) the third-party complaint was void due
to having been filed beyond the statutory required time frame; (2)
the third-party complaint was void and invalid due to Big Elm's
failure to obtain leave of court before filing; and (3) the trial
court lacked personal jurisdiction over Symphony because the third-
party complaint was void.
Rule 60(b)(4) of our Rules of Civil Procedure provides that
[o]n 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 when [t]he judgment is void. N.C. Gen. Stat. §
1A-1, Rule 60(b)(4) (2005). A judgment will not be deemed void
merely for an error in law, fact, or procedure. A judgment is void
only when the issuing court has no jurisdiction over the parties or
subject matter in question or has no authority to render the
judgment entered. Burton v. Blanton, 107 N.C. App. 615, 616, 421
S.E.2d 381, 382 (1992) (citing In re Brown, 23 N.C. App. 109, 110,
208 S.E.2d 282, 283 (1974)). A judgment that is proper on its face
is not void. Id. at 616, 421 S.E.2d at 383 (citing Drummond v.
Cordell, 73 N.C. App. 438, 326 S.E.2d 292 (1985), aff'd, 315 N.C.
385, 337 S.E.2d 850 (1986)). In the instant case, Symphony, as the
third-party defendant, had the burden of showing that the judgment
was void. Belanger v. Warren, __ N.C. App. __, __, 643 S.E.2d 84,
__ (2007) (citation omitted). It is well-settled that the standard of review for the denial
of a Rule 60(b) motion is that of an abuse of discretion. Davis v.
Davis, 360 N.C. 518, 523, 631 S.E.2d 114, 118 (2006) (citing Sink
v. Easter, 288 N.C. 183, 198, 217 S.E.2d 532, 541 (1975)). [A]
trial judge's extensive power to afford relief [under Rule 60(b)]
is accompanied by a corresponding discretion to deny it, and the
only question for our determination . . . is whether the court
abused its discretion in denying defendant's motion. Sawyer v.
Goodman, 63 N.C. App. 191, 193, 303 S.E.2d 632, 633-34 (1983). A
judge is subject to reversal for abuse of discretion only upon a
showing by a litigant that the challenged actions are manifestly
unsupported by reason. Clark v. Clark, 301 N.C. 123, 129, 271
S.E.2d 58, 63 (1980) (citation omitted).
Findings of fact made by the trial court upon a motion to set
aside a judgment by default are binding on appeal if supported by
any competent evidence. Kirby v. Asheville Contracting Co., 11
N.C. App. 128, 132, 180 S.E.2d 407, 410 (1971). Findings of fact
not assigned as error are deemed to be supported by sufficient
evidence, and are binding on appeal. N.C. R. App. P. 28(b)(6)
(2006). We review conclusions of law made by the trial court de
novo on appeal. Starco, Inc. v. AMG Bonding and Ins. Servs., 124
N.C. App. 332, 336, 477 S.E.2d 211, 215 (1996).
We note that Symphony has failed to provide this Court with
either a transcript or narrative of the hearing below. 'It is the
appellant's duty and responsibility to see that the record is in
proper form and complete.' McKyer v. McKyer, __ N.C. App. __, __,642 S.E.2d 527, 532 (2007) (quoting State v. Alston, 307 N.C. 321,
341, 298 S.E.2d 631, 644-45 (1983)). 'An appellate court is not
required to, and should not, assume error by the trial judge when
none appears on the record before the appellate court.' Id.
(quoting State v. Williams, 274 N.C. 328, 333, 163 S.E.2d 353, 357
(1968)). When an appellant fail[s] to include a narration of the
evidence or a transcript with the record, we presume the findings
at bar are supported by competent evidence. Davis v. Durham
Mental Health, 165 N.C. App. 100, 112, 598 S.E.2d 237, 245 (2004).
Symphony's motion to set aside the entry of default and default
judgment contains no argument that the third-party complaint was
void due to its filing which does not comport with the statutory
requirements. Symphony apparently made this argument orally before
the trial court, at the hearing for which we have no transcript or
narrative. Thus, due to Symphony's failure to include in the
record on appeal a transcript of the arguments before the trial
court, all findings of fact are presumed to be supported by
competent evidence. Id.
Symphony contends the trial court erred in denying its motion
to set aside the entry of default and default judgment, pursuant to
Rule 60(b)(4) of our Rules of Civil Procedure. Symphony argues the
orders were void, in that they were based upon Big Elm's third-
party complaint, which Symphony contends was filed outside of the
time period required by Rule 14 of our Rules of Civil Procedure.
Rule 14 of our Rules of Civil Procedure provides the
circumstances upon which a defendant may bring in a third-party: At any time after commencement of the action a
defendant, as a third-party plaintiff, may
cause a summons and complaint to be served
upon a person not a party to the action who is
or may be liable to him for all or part of the
plaintiff's claim against him. Leave to make
the service need not be obtained if the third-
party complaint is filed not later than 45
days after the answer to the complaint is
served. Otherwise, leave must be obtained by
motion upon notice to all parties to the
action.
N.C. Gen. Stat. § 1A-1, Rule 14(a) (2005). As noted in Clark v.
Visiting Health Prof'ls, Inc., 136 N.C. App. 505, 507, 524 S.E.2d
605, 606 (2000),
The purpose of Rule 14 is to promote judicial
efficiency by providing a mechanism for
disposing of multiple claims arising from a
single set of facts in one action
expeditiously and economically. Wright,
Miller & Kane, Federal Practice and Procedure:
Civil 2d § 1442, at 291 (1990). The rationale
for giving the trial court discretion to allow
filing of the third-party claim after
forty-five days is to ensure that the claim
does not lead to delay, confusion of the
issues or complication of the trial with new
issues. 1 G. Gray Wilson, North Carolina
Civil Procedure § 14-4, at 280 (2d ed. 1995)
(citing O'Mara Enter. v. Mellon Bank, 101
F.R.D. 668 (W.D. Pa. 1983)).
In the instant case, Big Elm served its answer on plaintiff on
27 September 2004, which started the 45-day time clock as provided
for by Rule 14(a). Thus, Big Elm had through 12 November 2004 to
file its third-party complaint without seeking leave of court. Big
Elm served its third-party complaint on plaintiff by mail on 12
November 2004, and filed it with the trial court on 15 November
2004. A third-party alias and pluries summons was issued on 4
January 2005, and Symphony was served through the Secretary ofState on 19 January 2005. Symphony contends that because the
third-party complaint was not filed within the required 45 days
pursuant to Rule 14(a), leave of court was required for Big Elm to
file the complaint, and as Big Elm did not obtain leave of court
prior to filing, the complaint is therefore void and invalid.
In its brief, Symphony contends that finding of fact 12, which
states [t]he third party complaint is not void[,] is in error and
should be reversed. Although the trial court labels this as a
finding of fact, it is wholly a conclusion of law. However, as
Symphony has not assigned error to any of the trial court's
findings of fact or conclusions of law, and has not submitted a
transcript or narrative of the hearing to this Court, Symphony's
argument may not prevail. Findings that are not assigned as error
are deemed binding on appeal, and while the findings in the instant
case are binding on us as they have not specifically been assigned
as error, N.C. R. App. P. 28(b)(6), we hold this conclusion of law,
although couched as a finding of fact, is supported by the evidence
and the trial court's other findings.
Rule 14(a) contains no provision stating that a third-party
complaint is void or invalid when filed after 45 days and without
leave of court, and Symphony fails to cite to any authority
applying Rule 14(a) in this manner. Instead, Symphony argues that
cases involving untimely service upon a party are analogous. We do
not find the two issues to be analogous. In this case, Big Elm
filed its third-party complaint three days after the required
forty-five day time frame. Symphony presents no argument that itwas in any way prejudiced by this late filing, nor does it argue
that the complaint is in any other way ineffective. Symphony was
properly served with the complaint, and does not deny that it had
notice of Big Elm's action against it. In fact, Symphony had
almost eight months in which it could have responded to the
complaint and raised these arguments, yet it failed to do so.
Symphony failed to respond to the third-party complaint, and in its
first filing with the trial court, it made no argument that the
complaint was in any way invalid or void.
Based upon the record before us, and the trial court's
findings of facts, which are deemed binding upon us, we hold the
trial court did not err in holding that the third-party complaint
was not void, and in entering default and default judgment against
Symphony. Symphony makes no argument that the third-party
complaint delayed justice, caused confusion, or in any way was
unrelated to the matter already before the trial court. Instead,
the third-party complaint clearly arose out of the same set of
facts alleged in plaintiff's complaint, thus judicial economy was
best served by allowing the multiple claims to be addressed in one
action. See Clark, 136 N.C. App. at 507, 524 S.E.2d at 606.
Therefore, Symphony has failed to show that the trial court abused
its discretion in denying its Rule 60(b)(4) motion.
Finally, Symphony argues that the trial court lacked personal
jurisdiction over it because the third-party complaint was void due
to its late filing. As we already have held that the trial court's
holding that the complaint was valid is correct, we must disagreewith Symphony's argument. Symphony was properly served with a
valid third-party complaint, and by all accounts it had actual
notice of Big Elm's action against it. Symphony's argument that
the trial court lacked personal jurisdiction over it is based
solely upon the alleged void complaint, and it makes no other
arguments regarding a lack of personal jurisdiction. Thus,
Symphony's final assignment is also overruled.
Affirmed.
Judges McGEE and LEVINSON concur.
Report per Rule 30(e).
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