E. Alan Rusher & H & R Towing, Inc. v. Tomlinson

459 S.E.2d 285, 119 N.C. App. 458, 1995 N.C. App. LEXIS 548
CourtCourt of Appeals of North Carolina
DecidedJuly 18, 1995
DocketCOA94-1058
StatusPublished
Cited by7 cases

This text of 459 S.E.2d 285 (E. Alan Rusher & H & R Towing, Inc. v. Tomlinson) is published on Counsel Stack Legal Research, covering Court of Appeals of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
E. Alan Rusher & H & R Towing, Inc. v. Tomlinson, 459 S.E.2d 285, 119 N.C. App. 458, 1995 N.C. App. LEXIS 548 (N.C. Ct. App. 1995).

Opinions

JOHNSON, Judge.

On 16 March 1993, Atlantic Diving & Marine Contractors, Inc. (Atlantic Diving) submitted an application for a Coastal Area [461]*461Management Act (CAMA) major development/dredge and fill permit to construct berthing facilities and engage in associated dredging at a pier facility on the west side of the Cape Fear River immediately downstream of the Cape Fear Memorial Bridge. Atlantic Diving’s application was made pursuant to a proposed plan to moor, on an extended basis, two very large ocean-going vessels (700 feet long and 100 feet wide) side-by-side under a contract with the Maritime Administration (MARAD).

Petitioner H & R Towing, Inc. has a marine towing and docking facility which abuts and is immediately upstream from the location of Atlantic Diving’s proposed berthing facility. Petitioner E. Alan Rusher is the owner of the land where H & R Towing, Inc.’s facility is located. Immediately north of H & R Towing’s facility, the U.S. Corps of Engineers maintains a facility for docking and maintenance. At the time of the permit application, the dredge Markam was docked at the Corps’ facility.

Following receipt of a copy of Atlantic Diving’s permit application, petitioners timely submitted objections to the proposed permit arguing, among other things, that the berthing facility contemplated by Atlantic Diving required an easement from the North Carolina Department of Administration, that the berthing facility would eliminate petitioners’ ability to dock tugs and barges at petitioners’ property, and that the berthing facility would pose a significant safety hazard.

On 4 June 1993, the North Carolina Department of Environment, Health and Natural Resources and Coastal Resources Commission issued a CAMA permit for construction of berthing facilities and associated dredging to Atlantic Diving, notwithstanding petitioners’ objections.

The CAMA permit was modified at Atlantic Diving’s request in October of 1993. The modification deleted certain breasting dolphins and piers and modified the dredge plan allowed by the original permit. The permit was again modified on 8 May 1994 by hand delivery of the letter to the Division of Coastal Management in which Atlantic Diving withdrew any right to construct “structures” on, above or in navigable waters granted by the original permit.

Petitioners allege that they received notice of the modification in January of 1994. No action was taken by them regarding the modification of the permit except for filing a motion to amend their petition [462]*462for judicial review to allege that they had not been given notice of the modification. This motion was filed and served on all parties on 21 January 1994. The petitioners have never filed any written objection to the modified permit or a request for a contested case hearing with the Commission regarding the modified CAMA permit.

In addition to the CAMA permit issued to Atlantic Diving, Atlantic Diving was also issued a separate United States Department of the Army Permit. This permit, issued on 28 May 1993, concerns matters over which the federal government possesses jurisdiction. The Corps permit was modified on 1 July 1993 to include a further condition with regard to matters affecting public safety and the requirement that Atlantic Diving coordinate safety issues with the Captain of the Port, the United States Coast Guard, and the Marine Safety Office.

Atlantic Diving filed its motion to dismiss for lack of subject matter jurisdiction on 25 April 1994, asserting that the court lacked subject matter jurisdiction because petitioners had failed to exhaust their administrative remedies and that the court lacked subject matter jurisdiction with regard to certain federal issues. The State as respondent joined in support of the motion to dismiss.

On 23 June 1993, petitioners timely filed a request for a contested case hearing with respondent Coastal Resources Commission. This request was based on the original permit.

On 1 July 1993, David Heeter of the Attorney General’s office, on behalf of the North Carolina Division of Coastal Management, submitted an analysis of the petition to the Chairman, recommending that the request for a contested case hearing be denied. Attached to this recommendation were various documents.

On 10 July 1993, Eugene B. Tomlinson, Chairman of the North Carolina Coastal Resources Commission, entered a decision denying petitioners’ request for a contested case hearing.

Pursuant to North Carolina General Statutes § 113A-123 (1994), petitioners sought judicial review and a hearing was held before Judge William C. Gore. At the hearing petitioners argued that they had satisfied the burden required to obtain a contested case hearing and that the Commission’s determination was affected by errors of law, arbitrary and capricious, unsupported by substantial evidence in view of the whole record or otherwise flawed. Specifically, petitioners argued that they demonstrated a substantial likelihood that the berthing facility contemplated by Atlantic Diving required an ease[463]*463ment from the North Carolina Department of Administration, would eliminate petitioners’ ability to dock tugs and barges at petitioners’ property, and would pose a significant safety hazard. Petitioners further argued that despite a letter from the agency requiring the applicants merely to summarize the evidence to be presented in support of its position, the agency determination viewed the submissions of petitioners as final and arbitrary and dismissed them.

Subsequently, the superior court affirmed the decision of the Commission finding that petitioners had failed to allege a violation of a statute or rule, and that petitioners had failed to demonstrate a substantial likelihood of prevailing upon the merits at a contested case hearing. From the adverse decision of the superior court, petitioners appeal to this Court.

Intervenor-respondent Atlantic Diving cross-appealed alleging that the trial court erred by failing to grant their motion to dismiss the petition for lack of subject matter jurisdiction.

The issue in the case sub judice is whether the trial court erred in refusing to order a contested case hearing in regard to the requirement of an easement before issuing a permit for construction of the project. Petitioners argue that an easement should have been required prior to issuing a permit.

North Carolina General Statutes § 146-12 (1991) provides:

The Department of Administration may grant, to adjoining riparian owners, easements in lands covered by navigable waters oij by the waters of any lake owned by the State for such purposes and upon such conditions as it may deem proper, with the approval of the Governor and Council of State. . . . Every such easement shall include only the front of the tract owned by the riparian owner to whom the easement is granted, shall extend no further than the deep water, and shall in no respect obstruct or impair navigation. (Emphasis added.)

Thus, this statute does not require an easement prior to the issuance of a CAMA permit. The Department of Administration has promulgated rules which set forth the requirements for issuance of permits. These rules provide:

(a) Riparian owners may construct piers or docks to gain access to navigable waters without an easement. Such structures may [464]

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E. Alan Rusher & H & R Towing, Inc. v. Tomlinson
459 S.E.2d 285 (Court of Appeals of North Carolina, 1995)

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Bluebook (online)
459 S.E.2d 285, 119 N.C. App. 458, 1995 N.C. App. LEXIS 548, Counsel Stack Legal Research, https://law.counselstack.com/opinion/e-alan-rusher-h-r-towing-inc-v-tomlinson-ncctapp-1995.