Winkler v. N.C. State Bd. of Plumbing, Heating & Fire Sprinkler Contractors

CourtSupreme Court of North Carolina
DecidedJune 5, 2020
Docket319PA18
StatusPublished

This text of Winkler v. N.C. State Bd. of Plumbing, Heating & Fire Sprinkler Contractors (Winkler v. N.C. State Bd. of Plumbing, Heating & Fire Sprinkler Contractors) 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
Winkler v. N.C. State Bd. of Plumbing, Heating & Fire Sprinkler Contractors, (N.C. 2020).

Opinion

IN THE SUPREME COURT OF NORTH CAROLINA

No. 319PA18

Filed 5 June 2020

DALE THOMAS WINKLER, and DJ’S HEATING SERVICE

v. NORTH CAROLINA STATE BOARD OF PLUMBING, HEATING & FIRE SPRINKLER CONTRACTORS

On discretionary review pursuant to N.C.G.S. § 7A-31 of a unanimous decision

of the Court of Appeals, 261 N.C. App, 106, 819 S.E.2d 105 (2018), reversing an order

entered on 15 May 2017 by Judge Edwin G. Wilson in Superior Court, Watauga

County. On 14 August 2019, the Supreme Court allowed defendant’s conditional

petition for discretionary review as to additional issues. Heard in the Supreme Court

on 6 January 2020.

Bailey & Dixon, LLP, by Jeffrey P. Gray, for petitioner-appellants.

Young Moore and Henderson P.A., by Angela Farag Craddock, John N. Fountain, and Reed N. Fountain, for respondent-appellee.

Nichols, Choi & Lee, PLLC, by M. Jackson Nichols, Anna Baird Choi, and Christina D. Cress; and North Carolina Real Estate Commission, by Janet B. Thoren, for the North Carolina Board of Architecture, North Carolina Board of Barber Examiners, North Carolina Real Estate Commission, North Carolina State Board of Chiropractic Examiners, and State Licensing Board for General Contractors, amici curiae.

BEASLEY, Chief Justice. WINKLER V. N.C. STATE BD. OF PLUMBING, HEATING & FIRE SPRINKLER CONTRACTORS

Opinion of the Court

In this case, the Court is asked to consider whether a trial court may award

attorney’s fees to a prevailing party in a disciplinary action by a licensing board.

Because we conclude that N.C.G.S. § 6-19.1 does not preclude a trial court from

awarding attorney’s fees in disciplinary actions by a licensing board, we modify and

affirm the holding below.

I. Factual and Procedural Background

In April 2013, maintenance staff from the Best Western Hotel in Boone, North

Carolina, contacted Dale Thomas Winkler f/k/a DJ’s Heating Service (Winkler) to

examine the hotel’s pool heater. Winkler held a Heating Group 3 Class II (H-3-II)

residential license that qualified him to work on detached residential HVAC units

and, as such, he was not licensed to perform the work requested. Upon examining the

heater, despite the fact that he was not equipped with the appropriate licensure,

Winkler determined that the gas supply had been turned off. He located the fuel

supply in the pool equipment room and turned on the gas.

On 16 April 2013, several days after Winkler examined the pool heater, two

guests died in Room 225 of the hotel, located above the pool equipment room. The

hotel closed the room until it could be checked for gas leaks. At the time, the cause of

death for both guests was undetermined.

The hotel contacted Winkler, asking him to examine the ventilation system for

the pool heater and the fireplace in Room 225. During his visit, Winkler performed a

soap test to check for gas leaks and determined there were no leaks. Without checking

-2- WINKLER V. N.C. STATE BD. OF PLUMBING, HEATING & FIRE SPRINKLER CONTRACTORS

for carbon monoxide, Winkler informed the hotel that the ventilation system

appeared to be working.

Following Winkler’s inspection, the hotel reopened Room 225 in late May 2013.

On 8 June 2013, one guest died and another guest was injured while staying in Room

225. Shortly after the third death, toxicology reports from the first two guests were

performed and indicated that both individuals had a lethal concentration of carbon

monoxide in their blood. Toxicology reports later performed on the third and fourth

guests also indicated excessive levels of carbon monoxide in their blood.

Following the issuance of the toxicology reports, the North Carolina State

Board of Plumbing, Heating, & Fire Sprinkler Contractors (the Board) performed its

own investigation and determined that carbon monoxide from the ventilation system

for the pool heater had entered Room 225 through openings near the room’s fireplace

and HVAC unit. After he admitted to the Board that he had performed work beyond

his license qualification, the Board suspended Winkler’s license for one year and

ordered him to complete multiple courses.

Winkler appealed the Board’s decision to the Superior Court, Watauga County.

The trial court entered an order on 22 June 2015 affirming the Board’s decision. On

appeal to the North Carolina Court of Appeals, Winkler challenged the Board’s

jurisdiction to discipline him for working on the pool heater without proper licensure.

On 20 September 2016, the Court of Appeals held that N.C.G.S. § 87-21 did not grant

the Board jurisdiction to discipline Winkler for conducting the pool heater inspection.

-3- WINKLER V. N.C. STATE BD. OF PLUMBING, HEATING & FIRE SPRINKLER CONTRACTORS

Winkler v. State Bd. of Exam’rs of Plumbing, Heating & Fire Sprinklers Contractors

(Winkler I), 249 N.C. App. 578, 599, 790 S.E.2d 727, 739 (2016). The Court of Appeals

vacated the portion of the Board’s order relating to Winkler’s inspection of the pool

heater and remanded the case to the Board for entry of a new order based on other

misconduct.

On 24 October 2016, Winkler filed a motion for attorney’s fees and costs in

Superior Court, Watauga County, pursuant to N.C.G.S. §§ 6-19.1 and 6-20, arguing

that the Board knew or should have known that it lacked authority to discipline him

for the pool heater inspection. The trial court entered an order awarding Winkler

$29,347.47 in attorney’s fees and costs. The Board appealed the order and moved to

stay the order awarding attorney’s fees and costs pending appeal.

The Court of Appeals ultimately held that the trial court erred in awarding

Winkler attorney’s fees pursuant to N.C.G.S. § 6-19.1 because, when read as a whole,

the statute excludes cases arising out of the defense of a disciplinary action by a

licensing board. Winkler v. N.C. State Bd. of Plumbing, Heating & Fire Sprinkler

Contractors (Winkler II), 261 N.C. App. 106, 114, 819 S.E.2d 105, 110–11 (2018). We

disagree.

II. Discussion

In North Carolina, a trial court may award attorney’s fees only as authorized

by statute. City of Charlotte v. McNeely, 281 N.C. 684, 691, 190 S.E.2d 179, 185

(1972). Section 6-19.1 of the North Carolina General Statutes governs a trial court’s

-4- WINKLER V. N.C. STATE BD. OF PLUMBING, HEATING & FIRE SPRINKLER CONTRACTORS

ability to award attorney’s fees. The relevant portion of the statute provides the

following:

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. 150B-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, including attorney’s fees applicable to the administrative review portion of the case, in contested cases arising under Article 3 of Chapter 150B, to be taxed as court costs against the appropriate agency if:

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