Gummels v. North Carolina Department of Human Resources

388 S.E.2d 223, 97 N.C. App. 245, 1990 N.C. App. LEXIS 63
CourtCourt of Appeals of North Carolina
DecidedFebruary 6, 1990
DocketNo. 8930SC173
StatusPublished
Cited by2 cases

This text of 388 S.E.2d 223 (Gummels v. North Carolina Department of Human Resources) 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
Gummels v. North Carolina Department of Human Resources, 388 S.E.2d 223, 97 N.C. App. 245, 1990 N.C. App. LEXIS 63 (N.C. Ct. App. 1990).

Opinion

ORR, Judge.

On 19 January 1988, petitioner, a partnership which does business as Huntington Manor of Murphy, filed applications for a Certificate of Need (CON) with the North Carolina Department of Human Resources, Division of Facility Services in the Certificate of Need Section (the Department). The deadline for filing such applications was 15 January 1988. Having missed that deadline, petitioner was informed that its applications would not be considered with those which were timely received for the 1 February 1988 review.

Thereafter, on 20 January 1988, petitioner wrote a letter to the Department requesting a declaratory ruling regarding “procedural inconsistency between the North Carolina Certificate of Need (CON) Program Administrative Rules and the 1988 N. C. State Medical Facilities Plan (‘SMFP’) affecting the 1990 nursing home bed need allocation.” Petitioner urged the Department to issue a ruling admitting its applications into the 1 February 1988 review process.

By letter dated 9 March 1988, the Department informed petitioner of its declaratory ruling affirming its decision not to consider petitioner’s applications. Then, on or about 13 May 1988, petitioners filed a petition with the Superior Court of Cherokee County seeking a temporary restraining order and a preliminary injunction to prevent the Department from announcing its intent to award the certificate of need and to postpone the actual awarding of the same. That petition was granted by order of Superior Court Judge Marlene Hyatt entered 15 June 1988. However, prior to the entry of that judgment, on 3 June 1988, the Department announced its intent [248]*248to issue the certificate of need to respondent Evangeline of Andrews, Inc. (Evangeline).

On 21 September 1988, Evangeline filed a motion for intervention as a respondent. On 17 October 1988, Evangeline served petitioners with a notice of hearing for that motion, and a notice of its motion to dismiss for lack of subject matter jurisdiction. Those motions were heard on 25 October 1988. Over petitioner’s objections, Evangeline was allowed to intervene. The court thereafter granted its motion to dismiss. From that order, petitioner appeals.

I.

The first issue raised by petitioner is whether the court erred in granting respondent Evangeline’s petition to intervene in the action between it and respondent Department. Petitioner contends that its petition before the trial court was for review of the Department’s declaratory judgment decision not to review its certificate of need with those considered in the 1 February 1988 cycle. Since respondent Evangeline was not a party to that dispute and, according to petitioner, has no interest in this matter, it should not have been permitted to intervene. Petitioner claims that just because Evangeline may have an interest in the ultimate resolution of the dispute between itself and the Department — the future allocation of the limited resources —it is not legally entitled to intervene as a matter of right. Furthermore, petitioner argues that Evangeline had no right to intervene as a competing applicant since the scope of review for the declaratory judgment related only to the Department’s refusal to consider petitioner’s application and not to whether petitioner filed a better application than Evangeline.

Respondent Evangeline argues that it was entitled to intervene because its rights were substantially affected by the agency’s decision and by the court’s injunction. Consequently, it claims that it was entitled to intervene as a “person aggrieved” under G.S. 150B-46. It also claims a right to intervene in the allocation of the beds which is the subject of the dispute between petitioners and the Department.

The court heard Evangeline’s motion to intervene at which time it found that “it appearing to the Court that [Evangeline] has an absolute right to intervene pursuant to Rule 24(a)(1) of the North Carolina Rules of Civil Procedure on the grounds that [249]*249N.C.G.S. 150(b)-46 [sic] states that any person agrieved [sic] may petition to become a party to a petition seeking judicial review ....”

G.S. 1A-1, Rule 24 entitled “Intervention^]” allows anyone to intervene as a matter of right when there is either statutory authority for the intervention, or “[w]hen the applicant claims an interest relating to the property or transaction which is the subject of the action . . . .” Furthermore, the applicant must be in jeopardy of having his rights impaired or impeded if the action is decided in his absence, and his rights are not adequately represented. Id.

The record before us demonstrates there was a total of 60 beds which could be allocated to applicants in Cherokee County. Petitioner is presently seeking to have all 60 of them allocated for its use. Evangeline has made application for 30 of the 60 beds. Evangeline’s rights are affected by petitioner’s request for review of the Department’s refusal to consider its application in that the Department was enjoined from issuing a certificate of need to Evangeline allocating the 30 beds to it during the pendency of the review process which petitioner requested. Furthermore, had the trial court reversed the Department’s declaratory judgment and ordered it to consider petitioner’s application, petitioner might have been awarded all or part of the 60 beds which are under the Department’s control. Evangeline was awarded the certificate of need, and it was at risk of having its interests substantially impaired.

Therefore, we find that the court did not err in granting Evangeline’s petition to intervene under G.S. 1A-1, Rule 24. Due to this conclusion, we find it unnecessary to discuss Evangeline’s right to intervene under G.S. 150B-46. This assignment of error is overruled.

II.

The next issue before us is whether the court erred in conducting a hearing and entering an order on Evangeline’s motion to dismiss at the same hearing in which it granted Evangeline’s petition to intervene. Petitioner argues that Evangeline served its motion to dismiss at the same time that it served its notice of hearing on its motion to intervene. Petitioner contends that Evangeline should have waited until after its petition for intervention was granted. Then it could have served notice of its motion to dismiss pursuant to the time limits prescribed by G.S. 1A-1, Rule 6(d).

[250]*250Respondent Evangeline argues that petitioner was not prejudiced by serving its motion to dismiss along with the notice of hearing because G.S. 1A-1, Rule 7 grants courts authority to hear motions made orally at the hearings in the causes to which the motions relate. Therefore, even if it had not served the motion to dismiss on petitioner in advance of the hearing, it could have orally motioned the court at the hearing and the result would have been the same. Respondent Department agrees with that argument and further argues that Evangeline’s filing and serving a written motion to dismiss before the hearing on its motion to intervene does not “trigger” the notice requirements imposed by G.S. 1A-1, Rule 6(d).

Focusing our attention on G.S. 1A-1, Rule 6(d), we find the rule requires that “[a] written motion, . . . and notice of hearing thereof shall be served not later than five days before the time specified for the hearing, unless a different period is fixed . . . .” Part (a) of Rule 6 explains the method of computing time when the period prescribed is less than seven (7) days. In that case, “intermediate Saturdays, Sundays and holidays shall be excluded in the computation.”

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Cite This Page — Counsel Stack

Bluebook (online)
388 S.E.2d 223, 97 N.C. App. 245, 1990 N.C. App. LEXIS 63, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gummels-v-north-carolina-department-of-human-resources-ncctapp-1990.