Etheridge v. Levitsky

Court of Appeals of North Carolina·Decided January 21, 2014·No. 13-350·Unpublished

Opinion

An unpublished opinion of the North Carolina Court of Appeals does not constitute controlling legal authority.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 Procedure.

NO. COA13-350

NORTH CAROLINA COURT OF APPEALS Filed: 21 January 2014 ANN E. ETHERIDGE, Plaintiff

Currituck County

v.

No. 11 CVS 33

FRANK C. LEVITSKY and USAA INS. CO. (unnamed)

Defendants

Appeal by plaintiff from orders entered 27 July 2012 and 10 August 2012 by Judge Henry W. Hight, Jr., and by defendant from order entered 19 March 2013 by Judge Walter H. Godwin, Jr., in Currituck County Superior Court. Heard in the Court of Appeals 27 August 2013.

Aycock & Butler, PLLC, by Charlie Aycock and Matthew J.

Spencer, for Plaintiff.

Fraim & Fiorella, P.C., by Edward A. Fiorella, Jr., for Defendant USAA Ins. Co.

ERVIN, Judge.

Plaintiff Ann E. Etheridge appeals from an order entered by Judge Hight on 27 July 2012 confirming an arbitration award and an order entered by Judge Hight on 10 August 2012 apparently denying Plaintiff’s motion for a new trial and Defendant USAA

Insurance Company appeals from an order entered by Judge Godwin denying its motion to dismiss Plaintiff’s appeal. On appeal, Plaintiff argues that Judge Hight erred by confirming the arbitration award because the arbitration panel based its decision upon an issue not submitted to the panel for arbitration and by failing to grant Plaintiff’s motion for a new trial, in which Plaintiff requested that the trial court’s order be amended to include findings of fact and conclusions of law, and Defendant USAA argues that Judge Godwin erred by failing to dismiss Plaintiff’s appeal on the grounds that she failed to note her appeal in a timely fashion and failed to comply with certain provisions of the North Carolina Rules of Appellate Procedure. After careful consideration of the parties’ challenges to Judge Hight’s and Judge Godwin’s orders in light of the record and the applicable law, we conclude that we should reach the merits of Plaintiff’s challenges to Judge Hight’s orders and that the challenged orders should be affirmed.

I. Factual Background

Plaintiff was a passenger on a motorcycle driven by Defendant Frank C. Levitsky that was involved in an accident on 12 September 2009 in Currituck County. At the time of the accident, Plaintiff had underinsured motorist coverage under a policy issued by Defendant USAA Casualty Insurance Company,

which afforded Plaintiff the right to seek resolution of certain disputes which she might have with Defendant USAA arising from a claim under her underinsured motorist coverage by means of arbitration.

On 20 January 2011, Plaintiff filed a complaint alleging that she had suffered permanent injury as a result of Defendant Levitsky’s negligence. After Defendant Levitsky’s liability carrier, Progressive Insurance Company, tendered its policy limits of $50,000, Plaintiff released Progressive, which was subsequently absolved from any further duty to defend Defendant Levitsky, and entered into a covenant not to seek a personal recovery against Defendant Levitsky.

On 22 August 2011, Plaintiff filed a motion to stay further proceedings in this case and to compel arbitration in reliance upon the underinsured motorist provisions of the USAA policy.1 On 29 August 2011, Defendant USAA filed an answer in which it denied that Plaintiff had been injured as a result of Defendant Levitsky’s negligence and asserted that Plaintiff’s claim was barred by contributory negligence and assumption of the risk.

On 1 September 2011, Defendants filed a response to Plaintiff’s 1 According to the policy in question, the insured might “demand to settle” any “dispute” concerning “[w]hether that insured is legally entitled to recover compensatory damages from the owner or driver of an uninsured motor vehicle or underinsured motor vehicle” or “the amount of such damages” by arbitration.

motion to compel arbitration and stay proceedings in which it requested that Plaintiff’s motion be denied in order to allow the parties to conduct discovery and participate in mediation. On 7 October 2011, Judge Jerry R. Tillett entered an order granting Plaintiff’s motion to compel arbitration.

On 27 March 2012, the parties entered into an Arbitration Agreement and Stipulations, filed on 9 April 2012, which provided that the arbitration panel would determine, “[f]rom the evidence presented, what amount of damages, if any, is recoverable by Plaintiff in excess of the sum ($50,000.00) paid by the primary carrier?” In addition, the parties stipulated, for purposes of the arbitration proceeding, that “Plaintiff alleges that Defendant Levitsky was negligent in the operation of his motor vehicle and that his negligence was a proximate cause of some injury to Plaintiff” and that “Defendant [Levitsky] alleges that he was not negligent, or in the alternative, as a gratuitous passenger, plaintiff assumed the risk of her injury (contributory negligence).”

A panel of three arbitrators conducted an arbitration hearing relating to the claims that Plaintiff had asserted against Defendants on 30 March 2012. On 30 March 2012, the arbitration panel signed an award providing that “[t]he plaintiff has failed to prove by a preponderance of the evidence

that the wreck and any injuries suffered by the plaintiff were caused by the negligence of the defendant Frank C. Levitsky.” On 3 April 2012, Plaintiff sent a letter to the panel members requesting that they correct their decision and make an award in favor of Plaintiff on the grounds that the issue of whether Plaintiff had been injured by Defendant Levitsky’s negligence had not been submitted to the panel for its consideration. On 11 April 2012, Defendant USAA sent a letter to the members of the arbitration panel requesting that they deny Plaintiff’s request and file the arbitration award with the court. On 18 April 2012, the arbitration panel, over the dissent of one member, ordered that “this arbitration hearing resume only for consideration of evidence from both parties on the issue of the defendant Levitsky’s negligence, if any, and the plaintiff’s contributory negligence, if any.”2 On 9 May 2012, Plaintiff filed a motion in which she contended that the arbitration agreement did not provide for a decision with respect to the issue of liability and requested that “the court . . . order the arbitration panel to make an award pursuant to the issue submitted under the agreement.” On 18 June 2012, Plaintiff amended the 9 May 2012 motion to include

a request that the court “vacate the [arbitration] verdict/award 2 The record does not reflect that any further proceeding was ever held before the arbitration panel.

pursuant to [N.C. Gen. Stat. §] 1-569.24(a)(2) and order the arbitration panel to make an award pursuant to the issue submitted under the agreement.” On 8 June 2012, Defendant USAA filed a motion seeking the entry of an order confirming the arbitration award pursuant to N.C. Gen. Stat. § 1-569.22. After a hearing concerning these motions was held on 16 July 2012, Judge Hight entered an order on 27 July 2012 granting Defendant’s motion to confirm the arbitration award and ordering that the award be filed with the office of the Clerk of Superior Court.

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