C.W. MATTHEWS CONTRACTING
COMPANY, INC. v. STATE OF NORTH CAROLINA AND NORTH CAROLINA DEPARTMENT OF
TRANSPORTATION, DIVISION OF HIGHWAYS
No. 8412SC813
COURT OF APPEALS OF NORTH
CAROLINA
75 N.C. App. 317;
330 S.E.2d 630; 1985 N.C.
App. LEXIS 3617
April 3, 1985, Heard in the
Court of Appeals
June 18, 1985, Filed
PRIOR HISTORY: [***1]
Appeal by plaintiff from Preston,
Judge. Order entered 18 April 1984 in Superior Court, Cumberland
County.
DISPOSITION:
Reversed.
OVERVIEW: A
contractor filed a claim for work done on a highway construction project.
Pursuant to N.C. Gen. Stat. § 136-29 the contractor exhausted his
administrative remedies and when he was unable to obtain satisfaction he
filed an action in the trial court within six months of the last
administrative decision. Before the complaint was answered, the contractor
voluntarily dismissed it. The contractor refiled its complaint within the
one year requirement of N.C. Gen. Stat. 1A-1, Rule 41(a)(1). The
department of transportation filed a motion to dismiss, arguing that the
contractor, by taking a voluntary dismissal, had not satisfied the filing
requirements of N.C. Gen. Stat. 136-29, the trial court granted the
motion and the contractor appealed. The court determined that by
satisfying the statute the first time, the contractor had conferred
jurisdiction on the trial court and the matter could proceed as a normal
civil action. The trial court did not lose jurisdiction where the matter
was refiled within one year. The order of the trial court was reversed.
OUTCOME: The
order of the trial court which dismissed the complaint of the contractor
was reversed.
COUNSEL:
Anderson, Broadfoot, Anderson,
Johnson & Anderson, by John H. Anderson, II, for plaintiff.
Attorney General Rufus L.
Edmisten, by Assistant Attorney General Thomas H. Davis, Jr., for
defendant.
JUDGES:
Clifton E. Johnson, Judge,
wrote the opinion. [***3] Judges Willis P. Whichard and Sidney S. Eagles,
Jr., concur.
OPINIONBY:
JOHNSON
OPINION:
[*318] [**631] The question
presented for review is whether the trial court erred in granting
defendant's motion to dismiss. The resolution of this issue involves the
interpretation of the procedural effect of G.S. 136-29.
[HN1] G.S. 136-29
provides, inter alia,
(a) Upon the completion of
any contract for the construction of any State highway awarded by the
Department of Transportation to any contractor, if the contractor fails
to receive such settlement as he claims to be entitled to under his
contract, he may, within 60 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 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 [***4] county wherein the work under said contract
was performed. The procedure shall be the same as in all civil actions
except as herein and as hereinafter set out.
[*319] G.S. 136-29
permits the plaintiff to maintain an action against the State of North
Carolina for settlement of money allegedly due pursuant to the highway
contract on project number 8.2326309. Plaintiff, as set forth in the
statute, must pursue its claim through administrative channels receiving a
decision from the State Highway Administrator before it can institute a
civil action in Superior Court. If plaintiff is not satisfied with the
decision of the State Highway Administrator, the statute permits plaintiff
to institute a civil action in Superior Court. Plaintiff must bring the
civil action within six months after receiving the decision of the State
Highway Administrator. Clearly, the requirement of proceeding first
through administrative channels for a resolution of the claim and the
requirement that if plaintiff receives an adverse ruling that the suit
must be instituted within six months are conditions precedent. G.S.
136-29. These conditions must be satisfied to vest the trial court
with jurisdiction [***5] to hear the action.
Plaintiff first pursued his
claim through the proper administrative channels. It received an adverse
ruling on its claim from the State Highway Administrator on 22 January
1981. On 21 July 1981, within six months of receipt of the adverse ruling,
plaintiff instituted this civil action by filing a complaint and serving
summons. Plaintiff satisfied all the conditions precedent set forth in G.S.
136-29 and as of 21 July 1981, the trial court had jurisdiction to
hear plaintiff's claim.
Both parties agree that at
this stage of the proceedings the action is properly filed and the trial
court has jurisdiction. However, on 12 August 1981, before DOT filed any
motions or its answer, plaintiff took a voluntary dismissal pursuant to
Rule 41 of the Rules of Civil Procedure. [HN2] G.S. 1A-1, Rule 41(a)(1)
provides that:
Subject to the provisions .
. . of any statute of this State, an action or any claim therein may be
dismissed by the plaintiff without order of court (i) by filing a notice
of dismissal at any time before the [**632] plaintiff rests his case . .
. Unless otherwise stated in the notice of dismissal or stipulation, the
dismissal is without prejudice [***6] . . . If an action commenced
within the time prescribed therefor, or any claim therein, is dismissed
without prejudice under this subsection, a new action based on the same
claim may be commenced within one year after such dismissal. . . .
[*320] Plaintiff refiled its
claim on 11 August 1982, within the one year prescribed by Rule 41(a)(1).
DOT contended that plaintiff, by taking a voluntary dismissal and refiling
the action on 11 August 1982, has not satisfied the filing requirement of G.S.
136-29. The trial court concluded that G.S. 136-29 preempted
Rule 41 and that plaintiff's action filed on 11 August 1982 failed to meet
the conditions precedent of G.S. 136-29. We disagree.
We believe that once the
conditions of G.S. 136-29 are satisfied, the trial court is vested
with jurisdiction and the action proceeds as any other civil action. Our
Courts have previously considered the procedural effect of similar
conditions precedent contained in our statutes. G.S. 97-58 sets
forth conditions precedent to the filing of a worker's compensation claim.
Poythress v. J. P. Stevens, 54 N.C. App. 376, 283 S.E. 2d 573 (1981),
disc. rev. denied, 305 N.C. 153, 289 S.E. [***7] 2d 380
(1982). In Poythress, the Court held that the two year time
limitation for filing claims with the Industrial Commission is a condition
precedent with which a claimant must comply in order to confer
jurisdiction upon the Industrial Commission to hear the claim. Id. at
382, 283 S.E. 2d at 577. The Court has also held that the conditions
precedent contained in G.S. 97-24 are conditions which must be met
to confer jurisdiction upon the Industrial Commission. Therefore,
following previous case law, we hold that the conditions precedent
contained in G.S. 136-29 are conditions that bestow jurisdiction
upon the Superior Court and do not preempt the Rules of Civil Procedure.
"The state, once it has consented to suit, occupies the same position
as any other litigant." Barrus Construction Co. v. N.C. Dept. of
Transportation, 71 N.C. App. 700, S.E. 2d (1984). This Court in Barrus
held that G.S. 1A-1, Rule 4 applies to civil actions filed pursuant
to G.S. 136-29. "No special attention to this rule [Rule 4]
appears for suit against the state, nor does this civil action appear to
be any different from other civil actions." Id. The same holds
true in the [***8] case sub judice.
The conditions of G.S.
136-29 satisfied, the trial court had jurisdiction of plaintiff's
claim and the action was to proceed as any other civil action. In a civil
action, plaintiff, before resting his case, may as a matter of right take
a voluntary dismissal and refile its action within one year. Cutts v.
Casey, 278 N.C. 390, 180 S.E. 2d 279 (1971). Plaintiff, in the present
case, exercised that option and was properly before the trial court.
[*321] The judgment of the
trial court granting defendant's motion to dismiss was error and must be
reversed.
Reversed.