Rockford-Cohen Group, LLC v. North Carolina Department of Insurance

749 S.E.2d 469, 230 N.C. App. 317, 2013 WL 5911718, 2013 N.C. App. LEXIS 1144
CourtCourt of Appeals of North Carolina
DecidedNovember 5, 2013
DocketNo. COA13-124
StatusPublished
Cited by11 cases

This text of 749 S.E.2d 469 (Rockford-Cohen Group, LLC v. North Carolina Department of Insurance) 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
Rockford-Cohen Group, LLC v. North Carolina Department of Insurance, 749 S.E.2d 469, 230 N.C. App. 317, 2013 WL 5911718, 2013 N.C. App. LEXIS 1144 (N.C. Ct. App. 2013).

Opinion

McGEE, Judge.

Rockford-Cohen Group, LLC and Lynette Thompson (“Plaintiffs”) filed a motion for preliminary injunction against the North Carolina Department of Insurance, Commissioner of Insurance Wayne Goodwin, and North Carolina Bail Agents Association. Plaintiffs sought a declaration that the 2012 N.C. Sess. Law, ch. 183, “An Act to Provide for the PreLicensing and Continuing Education of Bail Bondsmen and Runners [,]” (hereinafter “Act”) violated Article I, Section 34 of the North Carolina Constitution on perpetuities and monopolies. The trial court entered an order on 1 October 2012, granting Plaintiffs’ motion for preliminary injunction. Defendant North Carolina Bail Agents Association (hereinafter “Defendant”) filed notice of appeal. Defendants North Carolina Department of Insurance and Commissioner Wayne Goodwin did not appeal the order.

I. Motion to Dismiss the Anneal

Plaintiffs moved to dismiss Defendant’s appeal as interlocutory. It is well-established that a preliminary injunction is an interlocutory order. Revelle v. Chamblee, 168 N.C. App. 227, 229, 606 S.E.2d 712, 713-14 (2005). [319]*319There is no immediate right of appeal from an interlocutory order unless the order affects a substantial right. N.C. Gen. Stat. §§ 1-277, 7A-27(d)(l) (2011).

To determine whether immediate appeal is warranted, this Court uses a two-part test, “with the first inquiry being whether a substantial right is affected by the challenged order and the second being whether this substantial right might be lost, prejudiced, or inadequately preserved in the absence of an immediate appeal.” Hamilton v. Mortg. Info. Servs., Inc., 212 N.C. App. 73, 78, 711 S.E.2d 185, 189 (2011).

The substantial right test “is more easily stated than applied. It is usually necessary to resolve the question in each case by considering the particular facts of that case and the procedural context in which the order from which appeal is sought was entered.” Action Cmty. Television Broadcasting Network, Inc. v. Livesay, 151 N.C. App. 125, 129, 564 S.E.2d 566, 569 (2002).

Defendant contends that a substantial right was affected because the injunction “seeks to prevent [Defendant] from performing the duty that has been assigned to it by statute.” However, as Plaintiffs note, the injunction does not command Defendant to perform or refrain from performing any action. Rather, the only action the injunction requires is that the North Carolina Department of Insurance “shall not in any way discriminate against any approved provider.”

In its brief, Defendant compares itself to the North Carolina State Bar for its responsibility to protect the public. When an agent of the State that is charged with enforcing statutes chooses to appeal rulings limiting the enforcement of those statutes, the right to enforce the statute is substantial, and the rulings are immediately appealable. See Johnston v. State, _ N.C. App. _, 735 S.E.2d 859, 864 (2012), disc. review allowed, _ N.C. _, 738 S.E.2d 360 (2013); Gilbert v. N. C. State Bar, 363 N.C. 70, 76-77, 678 S.E.2d 602, 606 (2009).

Defendant, however, is not a state agency or an agent of the State that is charged with enforcing the statutes regarding bail bondsmen. Rather, the Commissioner of Insurance has the “full power and authority to administer the provisions” of Article 71, “Bail Bondsmen and Runners.” N.C. Gen. Stat. § 58-71-5 (2011). The Act affected provisions of Article 71 of the General Statutes. As previously noted, the Commissioner of Insurance chose not to appeal the order. This argument is therefore unavailing.

Defendant further contends that the right to do business and collect remuneration as the exclusive provider of creditable bail bondsmen training constitutes a substantial right. We agree.

[320]*320In American Motors Sales Corp. v. Peters, 58 N.C. App. 684, 294 S.E.2d 764 (1982), rev’d inpart on other grounds, 311 N.C. 311, 317 S.E.2d 351 (1984), this Court held that the denial of a stay of the Commissioner of Motor Vehicles’ order revoking a franchise that American Motors had given “421 Motor Sales” was interlocutory. This Court held that the order denying a stay “required [the appellants] to give up a right pending a hearing.” American Motors, 58 N.C. App. at 686, 294 S.E.2d at 766. Although this Court does not state so explicitly, the context of the opinion in American Motors indicates the right at issue was the right to do business pursuant to the franchise granted by American Motors. This Court held that the right was substantial, and the appeal was heard.

In the present case, the trial court’s grant of Plaintiffs’ motion for a preliminary injunction required Defendant to “give up” the right to do business as the exclusive provider of creditable bail bondsmen training and to receive remuneration for providing such education. Pursuant to American Motors, we review the merits of Defendant’s appeal.

II. Merits of the Appeal

The issue Defendant asks this Court to review is “whether the General Assembly’s policy decision to assign creditable bail bondsmen training to [Defendant] ... constitutes an impermissible monopoly in violation of the North Carolina Constitution.” The precise question of whether the decision to assign creditable bail bondsmen training to one particular group, where previously anyone could apply to the Commissioner of Insurance to provide such training, appears to be one of first impression.

The Courts of this State recognize “a presumption in favor of the constitutionality of a statute.” Gardner v. Reidsville, 269 N.C. 581, 594, 153 S.E.2d 139, 150 (1967). “It is well settled in this State that the Courts have the power, and it is their duty in proper cases, to declare an act of the General Assembly unconstitutional-but it must be plainly and clearly the case.” Id. “If there is any reasonable doubt, it will be resolved in favor of the lawful exercise of their powers by the representatives of the people.” Id.

. The Act at issue in this case states:

(a) In order to be eligible to take the examination required to be licensed as a runner or bail bondsman under G.S. 58-71-70, each person shall complete at least 12 hours of education as provided by the North Carolina Bail [321]*321Agents Association in subjects pertinent to the duties and responsibilities of a runner or bail bondsman, including all laws and regulations related to being a runner or bail bondsman.

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Bluebook (online)
749 S.E.2d 469, 230 N.C. App. 317, 2013 WL 5911718, 2013 N.C. App. LEXIS 1144, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rockford-cohen-group-llc-v-north-carolina-department-of-insurance-ncctapp-2013.