Powell v. Cartret

CourtCourt of Appeals of North Carolina
DecidedJuly 20, 2021
Docket20-406
StatusPublished

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Powell v. Cartret, (N.C. Ct. App. 2021).

Opinion

IN THE COURT OF APPEALS OF NORTH CAROLINA

2021-NCCOA-347

No. COA20-406

Filed 20 July 2021

New Hanover County, No. 18CVS2952

LARRY POWELL AND ALL AMERICAN BAIL BONDING, LLC, A North Carolina Limited Liability Company, Plaintiffs,

v.

MARK WAYNE CARTRET, Defendant.

Appeal by the North Carolina Department of Insurance from order entered 4

November 2019 by Judge W. Allen Cobb, Jr., in New Hanover County Superior Court.

Heard in the Court of Appeals 11 May 2021.

Attorney General Joshua H. Stein, by Special Deputy Attorney General Daniel Johnson, for Appellant North Carolina Department of Insurance.

Law Offices of G. Grady Richardson, Jr., P.C., by G. Grady Richardson Jr. and Susan Renton, for Plaintiffs-Appellees.

COLLINS, Judge.

¶1 The North Carolina Department of Insurance (“Department”) appeals from an

order denying its motion to quash the subpoena of Larry Powell and All American

Bail Bonding, LLC, (“Plaintiffs”) to produce documents and to testify at a Rule

30(b)(6) deposition. The Department contends that the trial court’s order fails to

comply with the plain language of N.C. Gen. Stat. §§ 58-10-430(c) and 58-30-62(f) and POWELL V. CARTRET

Opinion of the Court

erroneously orders the Department to release confidential documents.

I. Background

¶2 Plaintiffs filed a verified complaint on 20 August 2018 against Mark Wayne

Cartret (“Defendant”) alleging breach of contract. Defendant filed an answer and

counterclaims, alleging damages to himself and/or his company, Agent Associates

Insurance, LLC, (“AAI”). Plaintiffs issued a subpoena to the Department on 22

August 2019 to produce documents relating to Defendant and AAI, and to testify at

a Rule 30(b)(6) deposition. The Department timely served upon Plaintiffs an

Objection and Motion to Quash Plaintiffs’ Subpoena and 30(b)(6) Deposition

(“Motion”). In its Motion, the Department argued that certain documents and

information sought by the subpoena were confidential and could not be released,

pursuant to numerous provisions in Chapter 58 of the North Carolina General

Statutes, including, in relevant part, N.C. Gen. Stat §§ 58-10-430(c) and 58-30-62(f).

¶3 After a hearing on the Motion, the trial court entered an Order wherein it

found, in relevant part:

9. None of the statutory provisions cited by the [Department] in its Quash Motion under Chapter 58 of the North Carolina General Statutes provide that records can never be obtained from the [Department]. Rather, the statutory provisions cited by the [Department] specifically provide that records requested by subpoena that may fall under Chapter 58 of the North Carolina General Statutes shall be provided “upon an order of a court of competent jurisdiction.” POWELL V. CARTRET

The trial court concluded, in relevant part:

3. The records requested in Plaintiffs’ Subpoena may be produced under Chapter 58 of the North Carolina General Statutes “upon an order of a court of competent jurisdiction,” notwithstanding assertions of statutory confidentiality by the [Department] or alleged statutory requirements that the information be kept confidential.

The trial court ordered the Department to “produce full and complete records to

Plaintiffs’ counsel pursuant to Plaintiffs’ Subpoena” within sixty days and to “submit

to [Plaintiffs’] deposition pursuant to N.C. R. Civ. P. 30(b)(6)” within forty-five days

of the date of production of the Department’s records. The Department timely

appealed “from those parts of the Order . . . that ordered the Department to disclose

subpoenaed documents that are confidential under N.C. Gen. Stat. § 58-10-430(c) and

N.C. Gen. Stat. § 58-30-62(f).”

II. Appellate Jurisdiction

¶4 Plaintiffs moved to dismiss the Department’s appeal as the Order is

interlocutory. The Department concedes the Order is interlocutory but argues that

the Order affects a substantial right and is thus immediately appealable.

¶5 Interlocutory orders are those “made during the pendency of an action which

do not dispose of the case, but instead leave it for further action by the trial court to

settle and determine the entire controversy.” Carriker v. Carriker, 350 N.C. 71, 73,

511 S.E.2d 2, 4 (1999) (citation omitted). Generally, there is no right to immediately POWELL V. CARTRET

appeal an interlocutory order compelling discovery, and “an appeal will lie only from

a final judgment.” Steele v. Moore-Flesher Hauling Co., 260 N.C. 486, 491, 133 S.E.2d

197, 201 (1963) (citation omitted).

¶6 However, “immediate appeal is available from an interlocutory order or

judgment which affects a ‘substantial right.’” Sharpe v. Worland, 351 N.C. 159, 162,

522 S.E.2d 577, 579 (1999) (citations omitted); see N.C. Gen. Stat. §§ 1-277(a) and 7A-

27(b)(3)(a) (2019). A two-part test is used to determine whether an interlocutory

order affects a substantial right and is therefore immediately appealable. First, “the

right itself must be substantial[,]” and second, “the deprivation of that substantial

right must potentially work injury . . . if not corrected before appeal from final

judgment.” Sharpe, 351 N.C. at 162, 522 S.E.2d at 579 (quotation marks and citation

omitted).

¶7 The Department contends that the trial court’s order affected a substantial

right because the Department was ordered to disclose documents that are

confidential and not subject to disclosure, pursuant to N.C. Gen. Stat. § 58-10-430(c)

and N.C. Gen. Stat. § 58-30-62(f). Indeed, if the Department is required to disclose

the very documents that it alleges are protected from disclosure by the statutory

confidentiality provisions, then “a right materially affecting those interests which [an

entity] is entitled to have preserved and protected by law -- a substantial right -- is

affected.” Id. at 164-65, 522 S.E.2d at 580-81 (quotation marks and citations omitted). POWELL V. CARTRET

Moreover, the substantial right asserted by the Department will be lost if the trial

court’s order is not reviewed before entry of a final judgment. See Lockwood v.

McCaskill, 261 N.C. 754, 757, 136 S.E.2d 67, 69 (1964) (“If and when Dr. Wright is

required to testify concerning privileged matters at a deposition hearing, eo instante

the statutory privilege is destroyed. This fact precludes dismissal of the appeal as

fragmentary and premature.”) Accordingly, the Order on appeal affects a substantial

right; we deny Plaintiffs’ motion to dismiss and address the merits of the

Department’s arguments.

III. Standard of Review

¶8 Generally, a ruling on a motion to quash a subpoena is left to the sound

discretion of the trial court and an order denying a motion to quash is reviewed only

for an abuse of discretion. State v. Newell, 82 N.C. App. 707, 709, 348 S.E.2d 158,

160 (1986). However, where, as here, an appeal presents a question of statutory

interpretation, this Court conducts a de novo review of the trial court’s conclusions of

law. Morgan v. Steiner, 173 N.C. App. 577, 579, 619 S.E.2d 516, 518 (2005) (citation

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Related

Carriker v. Carriker
511 S.E.2d 2 (Supreme Court of North Carolina, 1999)
Hyler v. GTE Products Co.
425 S.E.2d 698 (Supreme Court of North Carolina, 1993)
Sharpe v. Worland
522 S.E.2d 577 (Supreme Court of North Carolina, 1999)
State v. Watterson
679 S.E.2d 897 (Court of Appeals of North Carolina, 2009)
Morgan v. Steiner
619 S.E.2d 516 (Court of Appeals of North Carolina, 2005)
Lockwood v. McCaskill
136 S.E.2d 67 (Supreme Court of North Carolina, 1964)
Steele v. Moore-Flesher Hauling Company
133 S.E.2d 197 (Supreme Court of North Carolina, 1963)
State v. Newell
348 S.E.2d 158 (Court of Appeals of North Carolina, 1986)
State v. James
813 S.E.2d 195 (Supreme Court of North Carolina, 2018)

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