Wilmington Shipyard, Inc. v. North Carolina State Highway Commission

171 S.E.2d 222, 6 N.C. App. 649, 1970 A.M.C. 737, 1969 N.C. App. LEXIS 1254
CourtCourt of Appeals of North Carolina
DecidedDecember 17, 1969
Docket695SC557
StatusPublished
Cited by11 cases

This text of 171 S.E.2d 222 (Wilmington Shipyard, Inc. v. North Carolina State Highway Commission) 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
Wilmington Shipyard, Inc. v. North Carolina State Highway Commission, 171 S.E.2d 222, 6 N.C. App. 649, 1970 A.M.C. 737, 1969 N.C. App. LEXIS 1254 (N.C. Ct. App. 1969).

Opinion

BRITT, J.

Defendant assigns as error the order overruling defendant’s demurrer to the complaint. The demurrer challenged the jurisdiction of the superior court to adjudicate the matters alleged in the complaint.

In Construction Co. v. Dept. of Administration, 3 N.C. App. 551, 165 S.E. 2d 338, this Court set out some of the basic principles which govern this case: “It is settled as a general rule that the State may not be sued unless by statute it has consented to be sued or has otherwise waived its immunity from suit. Teer Co. v. Highway Commission, 265 N.C. 1, 143 S.E. 2d 247; Ferrell v. Highway Commission, 252 N.C. 830, 115 S.E. 2d 34. The defendant in this case is an agency of the State. It is not subject to suit on contract or for breach thereof unless and except in the manner expressly authorized by statute. * *”

Plaintiff contends that it is authorized to maintain this suit by G.S. 136-29, which permits the filing of an action in the superior court in certain cases and subject to conditions precedent as specified in the statute. This appeal, therefore, presents the question: “Does G.S. 136-29 authorize plaintiff’s action against the State Highway Commission on a contract for the maintenance and reconditioning of ferryboats used in the North Carolina Highway System?” Our answer is yes.

The pertinent provisions of G.S. 136-29 are as follows:

“§ 136-29. Adjustment of claims — (a) Upon the completion of any contract for the construction of any State highway awarded by the State Highway Commission to any contractor, if the contractor fails to receive such settlement as he claims to be entitled to under his contract, he may, within sixty (60) *651 days from the time of receiving his final estimate, submit to the State Highway Administrator a written and verified claim for such amount as he deems himself entitled to under the said contract setting forth the facts upon which said claim is based. -* * #
(b) As to such portion of the claim as is denied by the State Highway Administrator, the contractor may within six (6) months from receipt of said decision, institute a civil action for such sum as he claims to be entitled to under said contract by the filing of a verified complaint and issuance of summons in the Superior Court of Wake County or in the superior court of any county wherein the work under said contract was performed. * * *
«
(e) The provisions of this section shall be deemed to enter into and form a part of every contract entered into between the State Highway Commission and any contractor, and no provision in said contracts shall be valid that is in conflict herewith.”

The impact of this statute is well summarized in 17 N.C.L. Hev. 340 as follows: “Prior to this statute [c. 318 at that time] one who had any claim growing out of a contract with the commission could not bring suit against the commission for it is a state agency and no consent to suit has been given. The claimant might present his claim to the general assembly or he might invoke the original jurisdiction of the supreme court under Article IV, Section 9 of the state constitution. [After 1965 Amendment, Section 10.] The latter course was not very satisfactory for the court has said that in such a proceeding it will consider only questions of law. The decision of the court, if in favor of the claimant, was simply recommendatory and was reported to the next General Assembly for its action. * * *”

In determining whether G.S. 136-29 authorizes plaintiff’s suit, this Court notes the principle that statutes in derogation of the common law are generally construed strictly. On the other hand, as a remedial statute, it “ought to receive from the courts such a construction as will remedy the existing evil,” Morris v. Staton, 44 N.C. 464, so as “to advance the remedy and permit the courts to bring the parties to an issue.” Land Co. v. Lange, 150 N.C. 26, 63 S.E. 164. The Workmen’s Compensation Act, for example, was an “* * * innovating substitution of statute law in a field theretofore left entirely to the common law, — in the retreat from the outmoded methods of the common law to a more modern concept *652 * * The court held that because of the radical and systematic changes in the common law, a statute “so markedly remedial in nature” must be liberally construed with a view to effectuating its purposes. Essick v. Lexington, 232 N.C. 200, 60 S.E. 2d 106.

The General Assembly has undertaken a comparably radical and systematic substitution of statutory provisions for the monarchistic doctrine of sovereign immunity: by G.S. 97-2(3) and 97-7, the State is an “employer” subject to workmen’s compensation; by G.S, 143-291, et seq., tort claims against State agencies and institutions may be asserted; by G.S. 143-135.3, the State may be sued on certain contracts for the construction of public buildings, and by G.S. 136-29, the State may be sued on a contract for highway construction.

The separate opinions of three distinguished justices in the case of Alliance Co. v. State Hospital, 241 N.C. 329, 85 S.E. 2d 386, reflect a disagreement at that time as to which rule of construction should be applied to statutes waiving immunity. The majority opinion concluded that “* * * [h]owever, it is not here necessary to pass upon the question as to rule of construction in a statute waiving; immunity,” holding that even a liberal construction of the Tort Claims Act, which the appellee urged, did not require the particular result urged by the plaintiff. Parker, J. (later C.J.), dissenting, was of the view that “[t]he current trend of legislative policy and of judicial thought is toward the abandonment of the monarchistic doctrine of governmental immunity, as exemplified by Tort Claims Acts enacted by the Congress and the Legislatures of various states. The purpose of such acts is to relieve the legislative branch of the government from the judicial function of passing upon tort claims against the State.”

In Floyd v. Highway Commission, 241 N.C. 461, 85 S.E. 2d 703, filed three weeks after Alliance, the decisions reflected the same disagreement. After setting out the controversy, the majority opinion said by way of dicta, “* * * [W]e think the sounder view is that they should be strictly construed,” to which Parker, J., dissenting, replied, “I do not agree with the expression in the majority opinion that we think the sounder view is that the Tort Claims Act of this State should be strictly construed.” (Emphasis added.) The majority opinion continued, “At any rate, the statute giving the right to maintain the suit must be followed as written,” and simply held that the plaintiff failed to show any facts sufficient for a finding of negligence. It is thus highly questionable that Floyd is a clear mandate from our Supreme Court that statutes in derogation of governmental immunity must be construed strictly. Floyd was cited in *653 passing as authority for such a proposition in R. R. v. Highway Commission, 268 N.C. 92, 150 S.E.

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Bluebook (online)
171 S.E.2d 222, 6 N.C. App. 649, 1970 A.M.C. 737, 1969 N.C. App. LEXIS 1254, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wilmington-shipyard-inc-v-north-carolina-state-highway-commission-ncctapp-1969.