Precision Fabrics Group, Inc. v. Transformer Sales & Service, Inc.

477 S.E.2d 166, 344 N.C. 713, 1996 N.C. LEXIS 519
CourtSupreme Court of North Carolina
DecidedNovember 8, 1996
Docket568PA95
StatusPublished
Cited by5 cases

This text of 477 S.E.2d 166 (Precision Fabrics Group, Inc. v. Transformer Sales & Service, Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Precision Fabrics Group, Inc. v. Transformer Sales & Service, Inc., 477 S.E.2d 166, 344 N.C. 713, 1996 N.C. LEXIS 519 (N.C. 1996).

Opinions

ORR, Justice.

In this case, we must decide whether the Court of Appeals erred in affirming the trial court’s order granting defendant’s motion for summary judgment. Specifically, this action involves interpretation of the statutory time periods for serving and filing affidavits in opposition to a motion for summary judgment. The trial court’s summary judgment order was based upon its conclusion that plaintiff had presented no evidence in opposition to defendant’s motion. At the hearing, the trial court refused to consider plaintiff’s expert’s affidavit contesting the motion on the grounds that the affidavit had not been served on defendant nor filed with the court in a timely fashion.

In summary, this case arises out of the sale of a purportedly defective transformer by defendant, Transformer Sales and Service, Inc. (TSS), to plaintiff, Precision Fabrics Group, Inc. The initial complaint in the case was filed on 25 June 1992. Subsequently, plaintiff filed an amended complaint on 17 August 1992, alleging breach of implied warranty and negligence after a transformer manufactured by defendant failed to operate properly. Plaintiff’s negligence claim stated that defendant failed to properly design the transformer; failed [716]*716to properly manufacture the winding coils and use uncontaminated oil; failed to properly inspect the transformer; and “otherwise fail[ed] to use that degree of skill, care, caution and prudence reasonably expected of a manufacturer and a distributor in similar circumstances.” Plaintiff further alleged that defendant breached implied warranties of merchantability and fitness. Defendant answered, denying any breach of warranty or negligence and asserting several affirmative defenses, including contributory negligence and assumption of risk.

On 21 June 1994, defendant served plaintiff by mail with a motion for summary judgment along with the supporting affidavits of William F. Outlaw, defendant’s vice-president of transformer sales, and John B. Dagenhart, a registered professional engineer. Defendant also included in the mailing to plaintiff a document entitled “Notice of Hearing.” This document stated that the motion for summary judgment was to be heard in Superior Court, Guilford County, on Tuesday, 5 July 1994, at 10:00 a.m. The motion, supporting affidavits, and notice of hearing were also mailed to the Guilford County Clerk of Superior Court on 21 June 1994 and filed with the court on 23 June 1994.

William Outlaw’s affidavit stated, among other things, that defendant’s design of the transformer “meets and exceeds all the requirements needed for proper performance of this unit” and “ [engineering guidelines utilized in the design . . . are in accordance with ANSI (American National Standard Institute) and NEMA [National Electrical Manufacturers Association] maintenance standards.” Further, the transformer was thoroughly tested before leaving the plant, and tests- did not indicate any defect within the unit. The materials used to construct the transformer were new and “were represented by the suppliers as being of good quality.”

The other affidavit submitted by defendant, that of John B. Dagenhart, stated, among other things, that “[t]he materials used by TSS to construct the transformer were represented to them by the suppliers as being of good quality.” Also, the “tests conducted by TSS during and after construction did not indicate any defect within the transformer.” Dagenhart further stated that “[t]here is no evidence that TSS knowingly shipped a defective transformer or negligently produced a defective transformer.” He concluded by stating that “PRECISION’S continued use of the transformer without notifying TSS of the overheating problem was unreasonable and may have [717]*717directly contributed to the damages which PRECISION seeks to recover from TSS.”

On 1 July 1994, plaintiff mailed to defendant an affidavit in opposition to the summary judgment motion and attached an unverified purchase order. These documents were filed with the court on 5 July 1994, the day the hearing was scheduled. The record is unclear as to whether the filing occurred before, during, or immediately after the hearing. However, counsel for plaintiff and defendant have stipulated that the affidavit in opposition to the summary judgment motion was filed in the clerk’s office at 10:55 a.m. Motion hearings for that day were scheduled to begin at 10:00 a.m., but the record does not reflect at what time this motion was actually heard.

Based upon representations made by counsel at oral argument and findings of fact by the trial court, the summary judgment hearing proceeded as follows: First, counsel for defendant argued in favor of the motion and submitted to the court the affidavits of John Dagenhart and William Outlaw, the deposition of John Dagenhart, and defendant’s answers to plaintiff’s first set of interrogatories. At the conclusion of defendant’s argument, counsel for plaintiff inquired as to why no mention was made of plaintiff’s affidavit in opposition to the motion during defendant’s argument. The trial court then asked counsel for plaintiff what affidavit he was speaking of, as the trial court had no such affidavit in the file. At that point, plaintiff attempted to tender his affidavit in opposition to the summary judgment motion. Defendant objected to the admission of the affidavit on the grounds that he had not been served with a copy of it. Upon further inquiry of defendant’s counsel, the trial court learned that defendant’s counsel had not seen plaintiff’s affidavit in opposition to the motion until plaintiff’s tender of the affidavit at the hearing.

The trial court subsequently declined to accept plaintiff’s affidavit for consideration. This was transcribed into an order granting defendant’s motion for summary judgment, including findings of fact and conclusions of law made by the trial court because of the special circumstances involved in this particular hearing. In its order, the trial court concluded that plaintiff’s affidavit had not been properly served on defendant or filed with the court “at least one day prior to this matter coming on for hearing on July 5, 1994” and “[p]ursuant to Battle v. Nash [Technical College], 103 N.C. App. 120, [404] S.E.2d [703] (1991), the Rules of Civil Procedure, and in its discretion, the [718]*718Court chooses not to receive” plaintiff’s affidavit in opposition to the motion. The trial court further concluded: “Based on the pleadings, discovery, Affidavits of John Dagenhart and William Outlaw,- and the deposition of John Dagenhart, the Court finds that there is no genuine question as to any material fact, and defendant is entitled to [summary] judgment as a matter of law.” The Court of Appeals affirmed the trial court’s order.

Plaintiff contends the trial court erred in excluding the affidavit, thereby resulting in the granting of defendant’s motion for summary judgment. Under Rule 56(c), a motion for summary judgment “shall be rendered ... if the pleadings, depositions, . . . 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.G.S. § 1A-1, Rule 56(c) (1990). In the case before us, the trial court granted summary judgment because there was no evidence admitted in opposition to the summary judgment motion and because defendant’s evidence was sufficient, since uncontested, to grant summary judgment to defendant.

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Precision Fabrics Group, Inc. v. Transformer Sales & Service, Inc.
477 S.E.2d 166 (Supreme Court of North Carolina, 1996)

Cite This Page — Counsel Stack

Bluebook (online)
477 S.E.2d 166, 344 N.C. 713, 1996 N.C. LEXIS 519, Counsel Stack Legal Research, https://law.counselstack.com/opinion/precision-fabrics-group-inc-v-transformer-sales-service-inc-nc-1996.