Housecalls Home Health Care, Inc. v. State

682 S.E.2d 741, 200 N.C. App. 66, 2009 N.C. App. LEXIS 1563
CourtCourt of Appeals of North Carolina
DecidedSeptember 15, 2009
DocketCOA08-1322
StatusPublished
Cited by25 cases

This text of 682 S.E.2d 741 (Housecalls Home Health Care, Inc. v. State) 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
Housecalls Home Health Care, Inc. v. State, 682 S.E.2d 741, 200 N.C. App. 66, 2009 N.C. App. LEXIS 1563 (N.C. Ct. App. 2009).

Opinions

BRYANT, Judge.

Plaintiffs Housecalls Home Health Care, Inc. (Housecalls), Housecalls Healthcare Group, Inc., and Terry Ward appeal from an order entered 30 June 2008 which granted defendants’ motion for summary judgment and dismissed with prejudice each of plaintiffs’ causes of action. For the reasons stated herein, we affirm in part, reverse in part and remand the order of the trial court.

Plaintiffs Housecalls and Housecalls Healthcare Group, Inc. are North Carolina corporations with a principal place of business in Greensboro, North Carolina. Both corporations are owned by plaintiff Terry Ward.

Housecalls entered into a participation agreement with defendant North Carolina Department of Health and Human Services (NCD-HHS) in which NCDHHS was to pay Housecalls for medical care rendered to Medicaid patients. In a letter dated 7 April 1997, the Program Integrity Section of the Division of Medical Assistance of NCDHHS notified Housecalls that it was withholding Medicaid payments pursuant to 42 C.F.R. § 455.231, entitled “ [withholding of payments in cases of fraud or willful misrepresentation.”

[68]*68The Medicaid Investigation Unit of the North Carolina Attorney General’s Office (NCAGO) conducted an investigation of Home Health Care, Inc., which was forwarded on to the United States Attorney’s office for review. In addition, the NCDHHS conducted its own investigation. As a result of the investigation, and pursuant to state and federal regulations, payments for Medicaid services provided by Housecalls were withheld. Equipment and records of Housecalls were seized pursuant to search warrants obtained by NCAGO.

Housecalls filed an action in OAH — the Office of Administrative Hearings — to contest the withholding of Medicaid payments. A temporary restraining order was entered in an attempt to enjoin NCDHHS from withholding medicaid payments; however, on 13 July 1998, after Housecalls filed a motion to show cause why NCDHHS should not be held in contempt for failure to obey the restraining order, a Randolph County Superior Court judge determined that the administrative order had expired by its own terms and that, moreover, the respondent State agency was not subject to contempt proceedings. The suit filed by Housecalls in OAH was later dismissed for failure to prosecute and upon request by plaintiff, for having exhausted its administrative remedies.

In a letter dated 13 January 2004, Christopher Brewer, then Director of the Medicaid Investigations Unit of the NCAGO, received an inquiry from Housecalls about the status of the investigation and the funds. Brewer responded by letter dated 3 February 2004 and addressed to plaintiffs’ legal counsel, J. Sam Johnson, Jr., which stated that the investigation had been closed and the withheld funds disbursed to federal, state, and county resources in partial recoupment of the overpayments found during the investigation.

On 17 August 2006, plaintiffs filed a civil action against defendants in the United States District Court for the Middle District of North Carolina. Plaintiffs brought causes of action for breach of contract, violation of the United States Constitution, and violation of the North Carolina Constitution, violation of 42 U.S.C. § 1983; sought declaratory relief to clarify the parties’ legal rights; and sought injunctive relief to obtain the release of withheld payments and other related compensatory damages. Federal Magistrate Judge Russell A. Eliason recommended that plaintiffs’ claims be dismissed with the exception of claims (1) séeking prospective declaratory relief concerning whether 42 C.F.R. § 455.23 requires a continuing active inves[69]*69tigation or the filing of legal proceedings in order to justify the continued withholding of funds and whether there is such an investigation concerning Housecalls, and (2) seeking an injunction ordering the return of seized property. On 23 July 2007, the United States District Court entered an order consistent with the magistrate judge’s recommendation.

On 28 September 2007, plaintiffs filed suit against defendants alleging breach of contract, violation of the United States Constitution, violation of the North Carolina Constitution, entitlement to legal and injunctive relief pursuant to 42 U.S.C. § 1983, conversion, and unjust enrichment. Defendants answered and on 12 June 2008 filed a motion for summary judgment asserting plaintiffs’ claims were barred by the three-year statute of limitations contained in N.C. Gen. Stat. § 1-52 and all other applicable limitations periods and laches. On 5 November 2007, plaintiffs filed an affidavit by former legal counsel, J. Sam Johnson, Jr., in which Johnson avers that he did not receive a letter from Christopher Brewer about the status of the investigation and the funds. On 30 June 2008, a Wake County Superior Court judge determined that plaintiffs’ claims were barred by applicable statutes of limitations and ordered that defendants’ motion for summary judgment be granted and that each of the plaintiffs’ causes of action be dismissed with prejudice. Plaintiffs appeal.

On appeal, plaintiffs raise the following question: Did the trial court commit reversible error in granting defendants’ motion for summary judgment on the basis of a violation of the statute of limitations.

Standard of Review

Summary judgment is appropriate “if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that any party is entitled to a judgment as a matter of law.” N.C. Gen. Stat. § 1A-1, Rule 56 (c) (2007). “Further, the evidence presented by the parties must be viewed in the light most favorable to the non-movant. Where a claim is barred by the running of the applicable statute of limitations, summary judgment is appropriate.” Webb v. Hardy, 182 N.C. App. 324, 326, 641 S.E.2d 754, 756, disc. review denied, 361 N.C. 704, 653 S.E.2d 879 (2007) (internal citations omitted). On appeal, the standard of review for summary judgment is de novo. Forbis v. Neal, 361 N.C. 519, 524, 649 S.E.2d 382, 385 (2007).

[70]*70 Discussion

Plaintiffs argue the trial court committed reversible error in granting defendants’ motion for summary judgment because there exist genuine issues of material fact as to whether their claims are barred by the statute of limitations. Specifically, plaintiffs contend that the statute of limitations to recover wrongly forfeited assets is six years and that in this case the statute of limitations began to run when defendants answered plaintiffs’ complaint and notified plaintiffs that the withheld Medicaid payments had been forfeited. We agree in part.

Although plaintiffs contend that a six-year statute of limitations should apply, they rely solely on United States v. Minor, 228 F.3d 352 (4th Cir. 2000). In Minor,

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Bishop v. Ledwell
Court of Appeals of North Carolina, 2026
Cent. Carolina Surgical Eye Assocs., P.A. v. Matthews
2022 NCBC 14 (North Carolina Business Court, 2022)
Loray Master Tenant, LLC v. Foss N.C. Mill Credit 2014 Fund I, LLC
2022 NCBC 1 (North Carolina Business Court, 2022)
Nfh, Inc. v. Troutman
2019 NCBC 64 (North Carolina Business Court, 2019)
Humana, Inc. v. Ameritox, LLC
267 F. Supp. 3d 669 (M.D. North Carolina, 2017)
Jackson v. Minnesota Life Insurance Co.
275 F. Supp. 3d 712 (E.D. North Carolina, 2017)
Lockerman v. S. River Electric Membership Corp.
794 S.E.2d 346 (Court of Appeals of North Carolina, 2016)
Taidoc Tech. Corp. v. Ok Biotech Co., Ltd.
2016 NCBC 26 (North Carolina Business Court, 2016)
Lockerman v. S. River Elec. Membership Corp.
2015 NCBC 57 (North Carolina Business Court, 2015)
Mountain Land Properties, Inc. v. Lovell
46 F. Supp. 3d 609 (W.D. North Carolina, 2014)
Flexible Foam Products, Inc. v. Vitafoam Inc.
980 F. Supp. 2d 690 (W.D. North Carolina, 2013)
Patriot Performance Materials, Inc. v. Powell
2013 NCBC 10 (North Carolina Business Court, 2013)
Housecalls Home Health Care, Inc. v. State
738 S.E.2d 753 (Court of Appeals of North Carolina, 2013)
Stec v. Fuzion Inv. Capital, LLC
2012 NCBC 24 (North Carolina Business Court, 2012)
Stratton v. Royal Bank of Canada
712 S.E.2d 221 (Court of Appeals of North Carolina, 2011)
Fox v. Sara Lee Corp.
709 S.E.2d 496 (Court of Appeals of North Carolina, 2011)
Amward Homes, Inc. v. Town of Cary
698 S.E.2d 404 (Court of Appeals of North Carolina, 2010)
Stratton v. Royal Bank of Can.
2010 NCBC 2 (North Carolina Business Court, 2010)

Cite This Page — Counsel Stack

Bluebook (online)
682 S.E.2d 741, 200 N.C. App. 66, 2009 N.C. App. LEXIS 1563, Counsel Stack Legal Research, https://law.counselstack.com/opinion/housecalls-home-health-care-inc-v-state-ncctapp-2009.