Hamby v. PROFILE PRODUCTS, LLC

676 S.E.2d 594, 197 N.C. App. 99, 2009 N.C. App. LEXIS 827
CourtCourt of Appeals of North Carolina
DecidedMay 19, 2009
DocketCOA08-942
StatusPublished
Cited by8 cases

This text of 676 S.E.2d 594 (Hamby v. PROFILE PRODUCTS, LLC) 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
Hamby v. PROFILE PRODUCTS, LLC, 676 S.E.2d 594, 197 N.C. App. 99, 2009 N.C. App. LEXIS 827 (N.C. Ct. App. 2009).

Opinion

WYNN, Judge.

This is the second appeal arising from an action brought by Plaintiffs Lennie and Bonnie Hamby against defendants Roy Hoffman; Terra-Mulch, L.L.C. (“Terra-Mulch”); Profile Products, L.L.C. (“Profile”); and Electric Service Group, Inc. (“ESG”), for personal injuries sustained in a workplace accident. Though this matter has been the subject of opinions from this Court and the Supreme Court, to appre *101 ciate the procedural posture of this case, we first describe the roles of each of the parties involved in this litigation.

Plaintiff. Lennie Hamby (“Hamby”) worked as a truck-dump operator for Terra-Mulch at its Conover, North Carolina plant. While descending an elevated platform to clear accumulated wood chips in an auger pit, he slipped and entangled his left leg in the augers, which failed to deactivate because the emergency switch was inoperable. The incident resulted in the amputation of his left leg above the knee. Lennie and Bonnie Hamby (“Plaintiffs”) brought a civil action describing Terra-Mulch as a wholly-owned subsidiary of Profile; Profile as the alter ego of Terra-Mulch; Roy Hoffman as an Assistant Plant Manager for Terra-Mulch; and ESG as a corporation hired to perform electrical work at Terra-Mulch’s Conover plant.

Plaintiffs “allege that Profile and Terra-Mulch collectively failed to provide a safe work site for the inherently dangerous work Hamby performed and that they thus ‘engaged in conduct which was grossly negligent, willful and wanton, and substantially certain to lead to death or serious injury ....’” Hamby v. Profile Prods., L.L.C., 361 N.C. 630, 632, 652 S.E.2d 231, 233 (2007). Though Plaintiffs asserted joint claims against Profile and Terra-Mulch, Plaintiffs argued (and our Supreme Court so interpreted) that they were asserting a claim against Terra-Mulch pursuant to Woodson v. Rowland, 329 N.C. 330, 407 S.E.2d 222 (1991), and an ordinary negligence claim against Profile. Hamby, 361 N.C. at 634, 652 S.E.2d at 234. Plaintiffs also asserted a claim against Terra-Mulch’s Assistant Plant Manager, Roy Hoffman, pursuant to Pleasant v. Johnson, 312 N.C. 710, 325 S.E.2d 244 (1985), alleging that he “engaged in misconduct which was willful and wanton.” Finally, Plaintiffs alleged that. ESG negligently performed electrical work causing an emergency stop button to become inoperable, resulting in serious injury to Hamby.

In May 2005, all Defendants moved for summary judgment. On 1 June 2005, Plaintiffs moved to compel discovery, requesting relief pursuant to Rule 56 (f) of the North Carolina Rules of Civil Procedure 56(f). On 6 June 2005, without ruling on Plaintiffs’ motion to compel discovery, the trial court granted summary judgment to Terra-Mulch and Hoffman, but denied summary judgment to Profile and ESG. Profile immediately appealed the denial of summary judgment to this Court, which in a divided opinion dismissed that appeal as interlocutory. Hamby v. Profile Prods., L.L.C., 179 N.C. App. 151, 158, 632 S.E.2d 804, 809 (2006).

*102 Based on the dissenting opinion, Profile appealed as a matter of right to our Supreme Court, which found the denial of summary judgment to Profile immediately appealable. Hamby, 361 N.C. at 639, 652 S.E.2d at 237. To reach that result, the Supreme Court first agreed that Profile’s appeal from the denial of summary judgment was interlocutory because the trial court’s order “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.” Id. at 633, 652 S.E.2d at 233 (citations and quotation marks omitted). The Court further noted that the trial court did not certify the matter for appeal under Rule 54(b); so, to merit review, the interlocutory order had to affect a substantial right. Id. at 634, 652 S.E.2d at 233-34. The Court next focused on Plaintiffs’ allegations and evidence that “Profile is [Terra-Mulch’s] sole member[-manager],” id. at 636-37, 652 S.E.2d at 235, and that under the pertinent statutes, “when a member-manager is managing the LLC’s business, its liability is inseparable from that of the LLC.” 1 Id. at 638, 652 S.E.2d at 236. Because Plaintiffs’ allegations and forecast of evidence tended to show that Profile was conducting Terra-Mulch’s business when Hamby was injured, the Supreme Court concluded that “Profile’s liability for actions taken while managing Terra-Mulch is inseparable from the liability of Terra-Mulch . ...” Id. at 639, 652 S.E.2d at 237. It followed that the grant of .summary judgment to Terra-Mulch, while denying summary judgment to Profile, created the risk of inconsistent verdicts and made- the denial of summary judgment to Profile immediately appealable. Id. The Court further concluded that,

the trial court erred in denying Profile’s motion for summary judgment because the denial was premised on Plaintiffs’ assertion of a third-party ordinary negligence claim against Profile, a claim that, as a matter of law, plaintiffs could not bring against Profile. Therefore, we remand this case to the Court of Appeals for further remand to the trial court for entry of summary judgment in favor of Profile.

Id.

After the Supreme Court’s decision, on 9 January and 3 March 2009, Plaintiffs filed a Motion for Reconsideration regarding *103 the granting of summary judgment in favor of Terra-Mulch, contending that,

When the summary judgment arguments were heard . . ., the parties’ arguments were premised on Profile’s status as a separate legal entity apart from the employer, Terra-Mulch. As such, the misconduct on the part of Defendant Profile was not attributed to Defendant Terra-Mulch. The Supreme Court Opinion in this matter materially changed the substantive law governing issues involved in this case and compels a different result with respect to the summary judgment ruling in favor of Defendant Terra-Mulch. Under the Supreme Court’s ruling, the actions, misconduct, and knowledge of Profile is properly attributable to Defendant Terra-Mulch.

The trial court denied Plaintiff’s Motion for Reconsideration on 8 May 2008 but certified “the judgment and all rulings in favor of Defendant Terra-Mulch Products, LLC” to this Court for immediate review. Thereafter, Plaintiffs gave “notice of appeal from the following Orders, rulings, and actions of the trial court:”

(1) The Order by the Honorable Nathanial J. Poovey entered on 21 June 2005, granting Defendant Terra-Mulch Products, LLC’s and Defendant Roy D. Hoffman’s Motions for Summary Judgment;
(2) The decision by the Honorable Nathanial J.

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Cite This Page — Counsel Stack

Bluebook (online)
676 S.E.2d 594, 197 N.C. App. 99, 2009 N.C. App. LEXIS 827, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hamby-v-profile-products-llc-ncctapp-2009.