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Smart Summary

Factual and Procedural Background

On August 10, 1999, plaintiff Jamie Reep pled guilty to felony assault with a dangerous weapon and received a sentence with specified minimum and maximum terms, including earned and meritorious time credits applied against his maximum term. Fourteen days of sentence reduction credit were intentionally left unapplied to comply with statutory minimum service requirements. Plaintiff was released on March 27, 2002, into post-release supervision, which was revoked on July 20, 2002, resulting in his return to custody to serve nine months. Plaintiff requested that the fourteen unapplied days be credited to this nine-month term, but the Department of Correction (DOC) refused, treating the reimprisonment as a separate sentence eligible only for credits earned during that period.

On December 20, 2002, plaintiff filed a class action complaint on behalf of himself and similarly situated individuals, alleging defendants violated statutory and constitutional rights by refusing to credit all earned sentence reductions upon reincarceration after post-release supervision revocation. Plaintiff simultaneously moved for class certification. While these motions were pending, plaintiff pled guilty to a separate larceny charge with a sentence running concurrently with the nine-month term, effectively subsuming it.

Defendants filed an answer and a motion for judgment on the pleadings, arguing mootness due to the concurrent sentence. The trial court dismissed the complaint as moot without addressing the class certification motion. Plaintiff appealed, and the Court of Appeals reversed and remanded, holding that the trial court erred by considering the dispositive motion before ruling on class certification. The Supreme Court of North Carolina granted discretionary review.

Legal Issues Presented

  1. Whether the trial court erred as a matter of law by considering defendants' motion for judgment on the pleadings prior to ruling on plaintiff's motion for class certification.
  2. Whether the Court of Appeals had jurisdiction to consider an issue not preserved at trial regarding the sequence of motions.
  3. The propriety of establishing a rigid rule requiring class certification motions to be decided before dispositive motions in class action cases.

Arguments of the Parties

The opinion does not contain a detailed account of the parties' legal arguments.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
State v. Gregory, 342 N.C. 580, 467 S.E.2d 28 (1996) Limitation of plain error review to evidentiary and instructional errors in criminal cases. Supported the principle that issues must be preserved at trial to be reviewed on appeal except under plain error.
State v. Canady, 330 N.C. 398, 410 S.E.2d 875 (1991) Requirement that trial court must be given opportunity to rule to preserve issues for appeal. Emphasized the necessity of timely requests or objections to preserve appellate review.
Harris v. Harris, 307 N.C. 684, 300 S.E.2d 369 (1983) Scope of appellate review limited to preserved assignments of error; appellate courts generally do not raise issues for parties. Supported dismissal of unpreserved issues on appeal.
State v. Golphin, 352 N.C. 364, 533 S.E.2d 168 (2000) Requirement of preservation of issues for appellate review. Noted insufficiency of attempts to preserve issues post-trial.
State v. Hoffman, 349 N.C. 167, 505 S.E.2d 80 (1998) Failure to preserve assignments of error for appellate review when trial court lacked opportunity to consider issue. Confirmed waiver of unpreserved issues.
Revels v. Robeson Cty. Bd. of Elections, 167 N.C. App. 358, 605 S.E.2d 219 (2004) Dismissing assignments of error based on issues not presented at trial. Reinforced the principle of preservation for appellate review.
State v. Fennell, 307 N.C. 258, 297 S.E.2d 393 (1982) Appellate rules are mandatory, not directory. Supported strict adherence to preservation requirements.
Blumenthal v. Lynch, 315 N.C. 571, 340 S.E.2d 358 (1986) Rule 2 of appellate procedure allows addressing unpreserved issues only on rare occasions. Indicated limited circumstances for appellate courts to consider unpreserved issues.
Steingress v. Steingress, 350 N.C. 64, 511 S.E.2d 298 (1999) Rule 2 should be used only in exceptional circumstances. Supported the limited and cautious use of appellate discretion to address unpreserved issues.
Pitts v. Am. Sec. Ins. Co., 144 N.C. App. 1, 550 S.E.2d 179 (2001), aff'd per curiam by an equally divided court, 356 N.C. 292, 569 S.E.2d 647 (2002) Dispositive motions should not be considered before ruling on class certification motions. Referenced by Court of Appeals to support sequencing of motions; Supreme Court noted the decision was affirmed by an equally divided court and left without precedential value.
Gaynoe v. First Union Corp., 153 N.C. App. 750, 571 S.E.2d 24 (2002), disc. rev. denied, 356 N.C. 671, 577 S.E.2d 118 (2003) Distinguished Pitts, allowing dispositive motions before class certification when motions are filed at different times and parties stipulate. Supported the proposition that trial courts have discretion in sequencing motions.
Simeon v. Hardin, 339 N.C. 358, 451 S.E.2d 858 (1994) Exceptions to mootness rule and class action considerations. Illustrated that a class representative's mootness does not necessarily moot the claims of unnamed class members.
County of Riverside v. McLaughlin, 500 U.S. 44, 114 L. Ed. 2d 49 (1991) Recognition of inherently transitory claims and class certification timing issues. Supported judicial discretion regarding timing of class certification motions.

Court's Reasoning and Analysis

The Court of Appeals ruled that the trial court erred by considering defendants' motion for judgment on the pleadings before ruling on plaintiff's motion for class certification. However, the Supreme Court found that this issue was not preserved at trial because plaintiff never argued to the trial court that class certification must be decided before the dispositive motion. Consequently, the trial court was never given the opportunity to rule on the sequencing issue, resulting in waiver of appellate review under North Carolina Rule of Appellate Procedure 10(b)(1).

The Supreme Court emphasized that appellate courts generally cannot consider issues not preserved at trial unless exceptional circumstances justify invoking Rule 2, which was not properly addressed by the Court of Appeals. The Court criticized the Court of Appeals for effectively creating a rigid, bright-line rule requiring class certification motions to be resolved before dispositive motions, noting that such a rule could hinder judicial economy and invite abuse, especially in cases involving frivolous class actions by pro se litigants.

The Court reviewed relevant precedents, including Pitts and Gaynoe, and concluded that the sequencing of motions should remain within the discretion of trial courts, mindful of exceptions to mootness and principles of justice and fair play. The Supreme Court expressed no opinion on the merits of plaintiff's underlying claims but held that the trial court did not err as a matter of law in considering the dispositive motion before the class certification motion. Therefore, the Court overruled the Court of Appeals' bright-line rule and reversed its decision.

Holding and Implications

REVERSED AND REMANDED.

The Supreme Court reversed the Court of Appeals' unpublished decision and remanded the case for further consideration of plaintiff's assignments of error. The Court held that the trial court did not err as a matter of law in addressing defendants' motion for judgment on the pleadings prior to ruling on plaintiff's motion for class certification, as the sequencing issue was not preserved for appellate review. This decision rejects the establishment of a rigid procedural rule mandating that class certification motions be decided before dispositive motions, thereby preserving judicial discretion and promoting judicial economy. No new substantive precedent was set beyond the procedural ruling on issue preservation and sequencing of motions.

JAMIE REEP, ON BEHALF OF HIMSELF AND ALL OTHERS SIMILARLY SITUATED v. THEODIS BECK, SECRETARY OF THE NORTH CAROLINA DEPARTMENT OF CORRECTION, AND JUDY SILLS, MANAGER, COMBINED RECORDS SECTION OF THE DEPARTMENT OF CORRECTION, IN THEIR OFFICIAL CAPACITIES.

Pleadings — sequence of considering motions — class certification — judgment on pleadings

The Court of Appeals erred by holding in an unpublished opinion that the trial court erred when it did not consider plaintiff's motion for class certification prior to ruling on defendants' dispositive motion for judgment on the pleadings, because: (1) the Court of Appeals considered an issue not preserved at trial to reach an erroneous result; (2) the Court of Appeals' rigid formulation could thwart judicial economy and invite abuse; (3) in determining the sequence in which motions will be considered, North Carolina judges will continue to be mindful of longstanding exceptions to the mootness rule and other factors affecting traditional notions of justice and fair play; and (4) while our Supreme Court expressed no opinion on the merits of plaintiff's appeal, it concluded that the trial court did not err as a matter of law in considering defendants' motion for judgment on the pleadings prior to ruling on plaintiff's motion for class certification.

EDMUNDS, Justice.

In this case, the Court of Appeals considered an issue not preserved at trial to reach a result that we find to be erroneous. Accordingly, we reverse.

On 10 August 1999, plaintiff Jamie Reep entered a plea of guilty to one count of felony assault with a dangerous weapon inflicting serious injury. Plaintiff was sentenced to a minimum term of forty months and a maximum term of fifty-seven months with credit for 255 days of pretrial confinement. While serving his minimum sentence, plaintiff received 148 days of earned time sentence reduction credit and was awarded 111 days of meritorious time reduction credit, all applied against his maximum term. Of the 259 days, 245 were applied in calculating plaintiff's minimum release date of 27 March 2002. The Department of Correction (DOC) intentionally left fourteen days uncredited in order to comply with the statutory requirement that an offender serve at least his minimum term. N.C.G.S. § 15A-1340.13(d) (2003).

Plaintiff was released from incarceration into post-release supervision on 27 March 2002. However, this post-release supervision was revoked on 20 July 2002, and plaintiff was returned to DOC to serve nine months of his original sentence. Plaintiff requested that DOC apply the previously unapplied fourteen days of sentence reduction credit to his nine month term. DOC refused, explaining later that for administrative purposes, it treats the time a defendant must serve when returned to custody under similar circumstances "as an additional, stand-alone sentence." Pursuant to this interpretation, plaintiff would be entitled only to credits earned during his reimprisonment.

On 20 December 2002, plaintiff filed in Wake County Superior Court a class action complaint on behalf of himself and all others similarly situated. Plaintiff's complaint, which named officials of the North Carolina Department of Correction as defendants, alleged that his statutory and constitutional rights were being violated as a result of defendants' refusal "to credit all earned and/or awarded sentence reduction credits to [an] inmate[']s maximum term of imprisonment" when the inmate was reincarcerated after revocation of post-release supervision. Plaintiff further alleged that defendants' practice ensures that he would be held beyond the time he was lawfully required to serve. The same day, plaintiff moved for class certification pursuant to Rule 23 of the North Carolina Rules of Civil Procedure.

On 9 January 2003, while the class action complaint and certification motion were pending, plaintiff entered a plea of guilty in Gaston County Superior Court to larceny, a Class H felony. The trial court imposed an active sentence of sixteen to twenty months, to be served concurrently with the nine month incarceration imposed on plaintiff when his post-release supervision was revoked. As a result, the larceny sentence entirely subsumed the nine month sentence for which plaintiff was claiming fourteen days of credit.

Defendants filed their answer to plaintiff's complaint on 29 January 2003. In light of plaintiff's concurrent larceny sentence, defendants the next day also filed a motion for judgment on the pleadings, arguing that plaintiff's claims were moot. The trial court conducted a hearing on 18 February 2003 at which plaintiff advised the court that defendants had stipulated during discovery that thirty-four reincarcerated individuals were in similar situations. Following the hearing, the trial court entered an order of dismissal on 27 February 2003, concluding that plaintiff's claim was "moot as a matter of fact and a matter of law" and that there was "no recognized exception to the [m]ootness [r]ule in this case." The trial court's order did not address plaintiff's motion for class certification.

Plaintiff entered notice of appeal to the North Carolina Court of Appeals. In an unpublished opinion, that court reversed and remanded, concluding that "[t]he trial court erred in considering [the] dispositive motion before ruling on plaintiff's motion for class certification." Reep v. Beck, 164 N.C. App. 779, 596 S.E.2d 906, 2004 N.C. App. LEXIS 1115, at *8 (June 15, 2004) (No. COA03-961). Accordingly, the Court of Appeals ordered that "[o]n remand, the trial court shall rule upon plaintiff's motion for class certification before addressing any motions respecting mootness." 2004 N.C. App. LEXIS 1115, at *8. On 14 July 2004, this Court granted defendants' motion for temporary stay, and on 2 December 2004 we allowed defendants' petitions for writ of supersedeas and for discretionary review of the Court of Appeals decision.

We begin by considering defendants' contention that the Court of Appeals erroneously asserted appellate jurisdiction when it ruled on an issue not properly before it. Defendants claim that questions pertaining to the sequence in which the motions should be addressed by the trial court were not preserved for appellate review.

Generally, except for matters set out in North Carolina Rule of Appellate Procedure 10(a), issues occurring during trial must be preserved if they are to be reviewed on grounds other than plain error. Rule 10(b)(1) provides, in part, that to preserve a question for appellate review, "a party must have presented to the trial court a timely request, objection or motion, stating the specific grounds for the ruling the party desired the court to make." N.C. R. App. P. 10(b)(1). We have observed that:

Plain error review is limited to alleged evidentiary and instructional errors in criminal cases State v. Gregory, 342 N.C. 580, 584, 467 S.E.2d 28, 31 (1996).

This subsection of [Rule 10]. . . . is directed to matters which occur at trial and upon which the trial court must be given an opportunity to rule in order to preserve the question for appeal. The purpose of the rule is to require a party to call the court's attention to a matter upon which he or she wants a ruling before he or she can assign error to the matter on appeal.
State v. Canady, 330 N.C. 398, 401, 410 S.E.2d 875, 878 (1991). A trial issue that is preserved may be made the basis of an assignment of error pursuant to Rule 10, and

[t]he scope of review by an appellate court is usually limited to a consideration of the assignments of error in the record on appeal and . . . if the appealing party has no right to appeal the appellate court should dismiss the appeal ex mero motu. When a party fails to raise an appealable issue, the appellate court will generally not raise it for that party.
Harris v. Harris, 307 N.C. 684, 690, 300 S.E.2d 369, 373-74 (1983) (citation omitted); see also State v. Golphin, 352 N.C. 364, 460-61, 533 S.E.2d 168, 231 (2000) (noting that the trial court was not afforded an opportunity to rule on the pertinent issue and that the defendant's subsequent efforts to preserve the issue for review were insufficient to satisfy Rule 10), cert. denied, 532 U.S. 931, 149 L. Ed. 2d 305 (2001); State v. Hoffman, 349 N.C. 167, 177, 505 S.E.2d 80, 86 (1998) (holding that the defendant failed properly to preserve assignment of error for appellate review because the trial court had no opportunity to consider the defendant's contention as presented on appeal), cert. denied, 526 U.S. 1053, 143 L. Ed. 2d 522 (1999); Revels v. Robeson Cty. Bd. of Elections, 167 N.C. App. 358, 361, 605 S.E.2d 219, 221 (2004) (dismissing the plaintiff's assignment of error because the theories argued on appellate review had not been presented before the trial court).

In addition, we have held that the "`rules of this Court, governing appeals, are mandatory and not directory.'" State v. Fennell, 307 N.C. 258, 263, 297 S.E.2d 393, 396 (1982) (quoting Pruitt v. Wood, 199 N.C. 788, 789, 156 S.E. 126, 127 (1930)). Although Rule 2 allows an appellate court to address a trial issue not properly preserved and raised on appeal, this power is to be invoked by either court of the appellate division only on "rare occasions" for such purposes as to prevent manifest injustice or to expedite a decision affecting the public interest. Blumenthal v. Lynch, 315 N.C. 571, 578, 340 S.E.2d 358, 362 (1986); see also Steingress v. Steingress, 350 N.C. 64, 66, 511 S.E.2d 298, 299-300 (1999) (noting that Rule 2 should only be used in "exceptional circumstances").

Here, our review of the record reveals that the issue of the sequence in which the motions should be resolved was never raised before the trial court. When the trial court entered its order dismissing plaintiff's class action complaint on 27 February 2003, two motions were pending: (1) plaintiff's motion for class certification, and (2) defendants' motion for judgment on the pleadings. Related documents supporting and opposing the two motions had also been filed. An examination of these documents indicates that while plaintiff contended that he met the requirements for class certification and that his claim was not moot or, in the alternative, met one of the mootness doctrine exceptions, nowhere did he argue that the trial court was required to rule on his motion for class certification prior to addressing defendants' motion for judgment on the pleadings. Similarly, the transcript of the 18 February 2003 hearing indicates that while plaintiff's counsel advised the trial court that class certification was a matter within the court's discretion, counsel never argued that the court must exercise that discretion before dealing with defendants' dispositive motion. Accordingly, the trial court was not afforded an opportunity to consider and rule on questions regarding the sequence in which it should take up the pending motions. Plaintiff's failure to preserve this issue for appellate review resulted in waiver of the purported error. N.C. R. App. P. 10(b)(1); State v. Jaynes, 342 N.C. 249, 263, 464 S.E.2d 448, 457 (1995), cert. denied, 518 U.S. 1024, 135 L. Ed. 2d 1080 (1996); see also Hoffman, 349 N.C. at 177, 505 S.E.2d at 86.

Because the issue was not preserved, only Rule 2 of the North Carolina Rules of Appellate Procedure would permit the Court of Appeals to raise the issue sua sponte. However, that court's opinion addresses neither plaintiff's waiver of the issue nor that court's election nevertheless to suspend the rules. It is apparent, then, that the Court of Appeals used Rule 2 sub silentio in an unpublished opinion to reach a potentially sweeping result that we determine to be incorrect.

The Court of Appeals relied on two cases in arriving at its conclusion. See Reep, 2004 N.C. App. LEXIS 1115, at *5-8 (discussing Pitts v. Am. Sec. Ins. Co., 144 N.C. App. 1, 550 S.E.2d 179 (2001), aff'd per curiam by an equally divided court, 356 N.C. 292, 569 S.E.2d 647 (2002), and Gaynoe v. First Union Corp., 153 N.C. App. 750, 571 S.E.2d 24 (2002), disc. rev. denied, 356 N.C. 671, 577 S.E.2d 118 (2003)). In Pitts, the Court of Appeals stated that "[d]ispositive motions . . . are not properly considered by the trial court until after ruling on a motion for class certification." 144 N.C. App. at 19, 550 S.E.2d at 193. We allowed discretionary review, and the Pitts decision was affirmed per curiam by an equally divided Court. As a result, the Court of Appeals decision was "left undisturbed and stands without precedential value." Pitts, 356 N.C. at 293, 569 S.E.2d at 647-48. Later, in Gaynoe, another Court of Appeals panel distinguished Pitts on the grounds that the plaintiff in Pitts had filed her complaint and her motion for class certification at the same time, while in Gaynoe the plaintiff's motion for class certification was filed nineteen months after the complaint. Gaynoe, 153 N.C. App. at 756, 571 S.E.2d at 27. In addition, the parties in Gaynoe stipulated that the trial court could consider both motions simultaneously. Id. at 756, 571 S.E.2d at 28. Based on these distinctions, the Gaynoe court held that the trial court did not err in allowing the defendant's motion for summary judgment before ruling on the plaintiff's pending motion for class certification. Id. at 756, 571 S.E.2d at 27-28.

After reviewing these cases, the Court of Appeals concluded that, absent the particular circumstances seen in Gaynoe, the "rule" in Pitts should be applied. Reep, 2004 N.C. App. LEXIS 1115, at *7-8. Accordingly, the Court of Appeals held that the trial court erred when it did not consider plaintiff's motion for class certification prior to ruling on defendants' dispositive motion for judgment on the pleadings. Id. at *8. Thus, the Court of Appeals effectively established in an unpublished opinion a rule of law applicable to trial courts in which class certification motions are pending.

We believe that the Court of Appeals' rigid formulation could thwart judicial economy and invite abuse. For instance, an incarcerated pro se litigant might simultaneously file a frivolous claim fashioned as a class action along with a class certification motion. In such circumstances, we see no justification for requiring the trial court to address class certification before ruling on a dispositive motion to dismiss the frivolous claim. This Court is confident that, in determining the sequence in which motions will be considered, North Carolina judges will continue to be mindful of longstanding exceptions to the mootness rule and other factors affecting traditional notions of justice and fair play. See, e.g., Simeon v. Hardin, 339 N.C. 358, 371, 451 S.E.2d 858, 867 (1994) (concluding that even assuming the named plaintiff's claims were moot, termination of the class representative's claim did not moot the claims of the unnamed members of the class because the claim was "`capable of repetition, yet evading review'"; therefore, the plaintiff could continue to represent the interests of the class if the action were certified) (citation omitted); see also Cty. of Riverside v. McLaughlin, 500 U.S. 44, 52, 114 L. Ed. 2d 49, 60 (1991) (recognizing that "`[s]ome claims are so inherently transitory that the trial court will not have even enough time to rule on a motion for class certification before the proposed representative's individual interest expires'") (alteration in original) (citation omitted). See generally 5 James Wm. Moore et al., Moore's Federal Practice § 23.64[1][b] (3d ed. 2005) (discussing mootness, class certification, and relation-back exception).

Here, the trial court heard arguments presented by both parties concerning class certification and the mootness doctrine and its exceptions. Based on this information, the trial court concluded that "[p]laintiff has failed to show any injury" and therefore no meaningful relief was available, that plaintiff's claim in the class action complaint was "moot as a matter of fact and a matter of law," and that there was "no recognized exception to the [m]ootness [r]ule in this case." While we express no opinion on the merits of plaintiff's appeal, the trial court did not err as a matter of law in considering defendants' motion for judgment on the pleadings prior to ruling on plaintiff's motion for class certification. To the extent the Court of Appeals promulgated a bright-line rule regarding this issue, it is overruled.

Based on the foregoing, we reverse the decision of the Court of Appeals. The case is remanded to the Court of Appeals for consideration of plaintiff's assignments of error.

REVERSED AND REMANDED.

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REEP v. BECK
(Oct 7, 2005)