Whiteco Industries, Inc. v. Harrington

434 S.E.2d 234, 111 N.C. App. 839, 1993 N.C. App. LEXIS 943
CourtCourt of Appeals of North Carolina
DecidedSeptember 7, 1993
DocketNo. 9210SC484
StatusPublished
Cited by3 cases

This text of 434 S.E.2d 234 (Whiteco Industries, Inc. v. Harrington) 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
Whiteco Industries, Inc. v. Harrington, 434 S.E.2d 234, 111 N.C. App. 839, 1993 N.C. App. LEXIS 943 (N.C. Ct. App. 1993).

Opinion

McCRODDEN, Judge.

This is an appeal from the trial court’s order granting attorney’s fees to petitioner pursuant to N.C. Gen. Stat. § 6-19.1 (1986). The North Carolina Department of Transportation (DOT) presents for review four arguments representing ten assignments of error. As in the companion case, Whiteco v. Harrelson, 111 N.C. App. 815, 434 S.E.2d 229 (1993) (Harrelson), we address the jurisdictional question, but we do so only briefly since the analysis used in that case applies to this one as well. Also as in Harrelson, we reverse the trial court on the issue of substantial justification, and we do not reach DOT’s other issues.

The facts of the case are as follows. Prior to 26 January 1989, DOT issued an outdoor advertising permit to petitioner Whiteco Industries, Inc. t/a Whiteco Metrocom for its outdoor advertising [841]*841billboard. On 26 January 1989, two DOT officials, District Engineer R. J. Nelson (Nelson) and Transportation Technical L. D. Cook, observed a pickup truck within the controlled access area of Interstate 95. When DOT officials stopped along the interstate, a man who identified himself as Eddie Edwards (Edwards), stated that he was working for J. W. Wellons (Wellons) of J. W. Management Company. Wellons was the secretary of Hornes Motor Lodge, and Hornes Motor Lodge was the subject of the advertisement on petitioner’s billboard on 26 January 1989. After talking to DOT officials, Edwards crossed the control of access fence for the interstate to move his vehicle.

On 27 January 1989, Nelson revoked petitioner’s outdoor advertising permit for unlawful violation of control of access, in violation of the Outdoor Advertising Control Act, N.C. Admin. Code tit. 19A, r. 2E.0210(9) (December 1990). DOT upheld the revocation on 3 March 1989.

On 3 April 1989, petitioner filed a petition for judicial review of DOT’s final decision. On 6 May 1991, petitioner served DOT with affidavits of Wellons and Robert Sykes, petitioner’s Vice President and General Manager, and a motion for summary judgment. The affidavits stated: that Edwards was employed by Wellons; that Wellons had instructed Edwards to paint a sign owned by Wellons; Edwards, instead of going to the sign owned by Wellons, mistakenly went to petitioner’s billboard; and Edwards committed the violation while at petitioner’s billboard. On 7 June 1991, respondent reinstated the permit and requested that petitioner cancel the hearing on the motion for summary judgment scheduled for 10 June 1991, since the permit had been reinstated. At the hearing on 10 June 1991, the trial judge directed petitioner to prepare an order denying summary judgment because it was moot. The order was filed 25 June 1991.

On 10 June 1991, petitioner filed a motion for attorney’s fees pursuant to N.C.G.S. § 6-19.1 and N.C. Gen. Stat. § 1A-1, Rule 11 (1990). At the 2 July 1991 hearing, the trial judge made no ruling in open court, but suggested that the parties schedule a hearing in January 1992, so that if the fee request were granted, a hearing could be held on the reasonableness of the attorney’s fees. On 30 October 1991, the judge made a notation to the courtroom clerk to place an entry in the court file finding that, pursuant to N.C.G.S. § 6-19.1, petitioner was entitled to costs and attorney’s fees in the amount $9,834.21.

[842]*842On 10 January 1992, the trial judge heard arguments on the substantial justification of DOT’s position in the underlying litigation and the reasonableness of attorney’s fees requested by petitioner. On 21 January 1992, the trial judge entered an order granting petitioner’s motion for attorney’s fees and awarding fees in the amount of $9,834.21 and costs in the amount of $1,022.40.

The first argument we consider is DOT’s contention that the trial court did not have jurisdiction to rule on petitioner’s motion for attorney’s fees pursuant to N.C.G.S. § 6-19.1. DOT contends, inter alia, that petitioner filed its motion for attorney’s fees prematurely because there was no final disposition of the case at the time the motion was filed and, therefore, the trial court did not have jurisdiction to award attorney’s fees. We addressed the same issue in Harrelson, and we rejected as too narrow DOT’s argument that the 30-day period establishes a starting point as well as a deadline. We found that petitioner’s motion for attorney’s fees, filed well before final judgment, was timely, and accordingly, we ruled that the trial court had jurisdiction in the matter. We adopt the reasoning from that opinion and determine that the trial court had jurisdiction in this case as well.

DOT’s second contention is that the trial court erred in awarding attorney’s fees because DOT was substantially justified in revoking petitioner’s outdoor advertising permit. N.C.G.S. § 6-19.1 grants a trial court the power to require the State to pay attorney’s fees under certain conditions:

In any civil action, other than an adjudication for the purpose of establishing or fixing a rate, or a disciplinary action by a licensing board, brought by the State or brought by a party who is contesting State action pursuant to G.S. 150A-43 or any other appropriate provisions of law, unless the prevailing party is the State, the court may, in its discretion, allow the prevailing party to recover reasonable attorney’s fees to be taxed as court costs against the appropriate agency if:
(1) The Court finds that the agency acted without substantial justification in pressing its claim against the party; and
(2) The Court finds that there are no special circumstances that would make the award of attorney’s fees unjust.

[843]*843In order to award attorney’s fees under this statute, the trial judge had to determine first that the petitioner was the prevailing party. Since petitioner’s petition demanded reinstatement of its outdoor advertising permit and DOT ultimately reinstated it, DOT does not contest the trial court’s finding that petitioner was a prevailing party.

In addition to finding that petitioner was the prevailing party, the trial court had to determine that DOT acted without substantial justification in pressing its claim against petitioner and revoking petitioner’s outdoor advertising permit. In reviewing DOT’s argument on this issue, our first task is to determine the standard of review of the trial court’s decision that DOT lacked substantial justification. In Harrelson, we followed Tay v. Flaherty, 100 N.C. App. 51, 55, 394 S.E.2d 217, 219, disc. review denied, 327 N.C. 643, 399 S.E.2d 132 (1990), in treating substantial justification as a conclusion of law, and hence reviewable by this Court on appeal.

This Court has relied on the case of Pierce v. Underwood, 487 U.S. 552, 101 L.Ed.2d 490 (1988), to define substantial justification as justification “to a degree that could satisfy a reasonable person . . . .” Tay, 100 N.C. App. at 56, 394 S.E.2d at 219. To be “substantially justified” means “more than merely undeserving of sanctions for frivolousness; that is assuredly not the standard for Government litigation of which a reasonable person would approve.” Pierce, 487 U.S. at 566, 101 L.Ed.2d at 505.

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Bluebook (online)
434 S.E.2d 234, 111 N.C. App. 839, 1993 N.C. App. LEXIS 943, Counsel Stack Legal Research, https://law.counselstack.com/opinion/whiteco-industries-inc-v-harrington-ncctapp-1993.