v.
Nat'l Council of Young Men's Christian Ass'n of the United States of Am.
2021-NCCOA-612
No. COA20-696
Filed 16 November 2021
Forsyth County, No. 20 CVS 951
JOSEPH CRYAN, SAMUEL CRYAN, KERRY HELTON, THOMAS HOLE, RICKEY HUFFMAN, JOSEPH PEREZ, JOSHUA SIZEMORE, DUSTIN SPRINKLE, and MICHAEL TAYLOR, Plaintiffs, v.
NATIONAL COUNCIL OF YOUNG MEN’S CHRISTIAN ASSOCIATIONS OF THE UNITED STATES OF AMERICA; YOUNG MEN’S CHRISTIAN ASSOCIATION OF NORTHWEST NORTH CAROLINA d/b/a KERNERSVILLE FAMILY YMCA and MICHAEL TODD PEGRAM, Respondent.
Appeal by respondent from order entered 22 July 2020 by the Honorable
Richard S. Gottlieb in Forsyth County Superior Court. Heard in the Court of Appeals
26 May 2021.
Lanier Law Group, P.A., by Donald S. Higley, II, for Petitioner-Appellee.
Nelson Mullins Riley & Scarborough LLP, by Lorin J. Lapidus, for Respondent- Appellant.
GORE, Judge.
¶1 The claims in the present matter arise from acts of sexual abuse by Defendant
Pegram, while he was employed by the YMCA, on Plaintiffs, who were minors at the CRYAN V. NAT’L COUNCIL OF YOUNG MEN’S CHRISTIAN ASS’N OF THE U.S.
[*1]2021-NCCOA-612
Opinion of the Court
time of the abuse. The last act of sexual abuse by Pegram occurred approximately twenty years ago. ¶2 Based on Plaintiffs’ allegations, all claims became time-barred in 2015 under the then-applicable statute of limitations. The youngest Plaintiff turned 18 years of age in 2005. The longest limitations period for any of the claims was ten years. Accordingly, all claims in this action became time-barred by 2015. ¶3 Four years later, though, in 2019, our General Assembly enacted Section 1- 17(e), which allows a person who was a victim of sexual abuse when (s)he was a minor to bring an action for claims “related to [the] sexual abuse” “within two years of the date of a criminal conviction” of the perpetrator of the sexual abuse. N.C. Gen. Stat. § 1-17(e) (2020). Here, the Complaint alleges that the perpetrator, Defendant Pegram, was convicted of various sex offenses. Defendant challenges the constitutionality of Section 1-17(e) which was enacted in 2019. And Plaintiffs commenced their previous time-barred claims in 2020, within two years of Pegram’s conviction pursuant to Section 1-17(e). I. Factual & Procedural Background ¶4 This is a case in which multiple victims allege they were sexually assaulted by Michael Todd Pegram (“Pegram”) while he worked as an employee of Defendant- Appellant Young Men’s Christian Association of Northwest North Carolina d/b/a Kernersville Family YMCA (“YMCA” or “Defendant”). In 2019, Pegram was convicted CRYAN V. NAT’L COUNCIL OF YOUNG MEN’S CHRISTIAN ASS’N OF THE U.S. 2021-NCCOA-612 Opinion of the Court for those crimes. On 14 February 2020, Plaintiffs-Appellees Joseph Cryan, Samuel Cryan, Kerry Helton, Thomas Hole, Rickey Huffman, Joseph Perez, and Michael Taylor (collectively, “Plaintiffs”) filed a complaint seeking compensatory and punitive damages from Defendant for assault, battery, negligent hiring retention and supervision of Pegram, negligent infliction of emotional distress, and intentional infliction of emotional distress. ¶5 On 1 June 2020, Defendant filed a motion to dismiss pursuant to Rule 12(b)(6) of the North Carolina Rules of Civil Procedure on the basis that Plaintiffs’ claims are time barred because the North Carolina General Assembly’s amendments to N.C. Gen. Stat. § 1-17(e) (2019) and N.C. Gen. Stat. § 1-52(5), (16) and (19) (2019) (collectively “2019 amendments”) were in violation of the North Carolina Constitution. See SAFE Child Act, N.C. Session Law 2019-245, S.B. 199 (2019). N.C. Gen. Stat. § 1-17(e) states: (e) Notwithstanding the provisions of subsections (a), (b), (c), and (d) of this section, a plaintiff may file a civil action within two years of the date of a criminal conviction for a related felony sexual offense against a defendant for claims related to sexual abuse suffered while the plaintiff was under 18 years of age. N.C. Gen. Stat. § 1-17(e). ¶6 On 18 June 2020, Plaintiffs filed a motion pursuant to N.C. R. Civ. P. 42(b)(4) and N.C. Gen. Stat. § 1-267.1(a1) to transfer Defendant’s motion to dismiss to the CRYAN V. NAT’L COUNCIL OF YOUNG MEN’S CHRISTIAN ASS’N OF THE U.S. 2021-NCCOA-612 Opinion of the Court Wake County Superior Court for the appointment of a three-judge panel to determine the constitutionality of the amendments. N.C. Gen. Stat. § 1-267.1(a1) states: (a1) Except as otherwise provided in subsection (a) of this section, any facial challenge to the validity of an act of the General Assembly shall be transferred pursuant to G.S. 1A-1, Rule 42(b)(4), to the Superior Court of Wake County and shall be heard and determined by a three-judge panel of the Superior Court of Wake County, organized as provided by subsection (b2) of this section. ¶7 N.C. Gen. Stat. § 1-267.1(a1) (2019). N.C. R. Civ. P. 42(b)(4) further provides: (b) Separate trials ... (4) Pursuant to G.S. 1-267.1, any facial challenge to the validity of an act of the General Assembly, other than a challenge to plans apportioning or redistricting State legislative or congressional districts, shall be heard by a three-judge panel in the Superior Court of Wake County if a claimant raises such a challenge in the claimant’s complaint or amended complaint in any court in this State, or if such a challenge is raised by the defendant in the defendant’s answer, responsive pleading, or within 30 days of filing the defendant’s answer or responsive pleading. In that event, the court shall, on its own motion, transfer that portion of the action challenging the validity of the act of the General Assembly to the Superior Court of Wake County for resolution by a three-judge panel if, after all other matters in the action have been resolved, a determination as to the facial validity of an act of the General Assembly must be made in order to completely resolve any matters in the case. The court in which the action originated shall maintain jurisdiction over all matters other than the challenge to the act’s facial validity. For a motion filed under Rule 11 or Rule 12(b)(1) through (7), the original court shall rule on the motion, however, it may decline to rule on a motion that is based solely upon CRYAN V. NAT’L COUNCIL OF YOUNG MEN’S CHRISTIAN ASS’N OF THE U.S. 2021-NCCOA-612 Opinion of the Court Rule 12(b)(6). If the original court declines to rule on a Rule 12(b)(6) motion, the motion shall be decided by the three- judge panel. The original court shall stay all matters that are contingent upon the outcome of the challenge to the act’s facial validity pending a ruling on that challenge and until all appeal rights are exhausted. Once the three-judge panel has ruled and all appeal rights have been exhausted, the matter shall be transferred or remanded to the three- judge panel or the trial court in which the action originated for resolution of any outstanding matters, as appropriate. N.C. R. Civ. P. 42(b)(4) (2019) (emphasis added). ¶8 Defendant’s motion to dismiss, as well as Plaintiffs’ motion to transfer Defendant’s motion to dismiss to the three-judge panel in Wake County came on for hearing and oral argument on 17 July 2020 in Forsyth County Superior Court before the Honorable Richard S. Gottlieb. Because Defendant’s motion to dismiss was based solely upon Rule 12(b)(6), the trial court, declined to rule on the Rule 12(b)(6) motion, and granted Plaintiffs’ motion to transfer Defendant’s motion to dismiss to Wake County pursuant to N.C. R. Civ. P. 42(b)(4). The trial court entered an order transferring “the action” to the three-judge panel of the Wake County Superior Court on 21 July 2020, and issued an amended order entered 22 July 2020, correcting a typographical error. ¶9 On 17 August 2020, Defendant filed a notice of appeal. On 16 December 2020, Plaintiffs filed a motion to dismiss Defendant’s appeal, contending Defendant’s appeal is interlocutory and does not affect a substantial right. On 4 January 2021, CRYAN V. NAT’L COUNCIL OF YOUNG MEN’S CHRISTIAN ASS’N OF THE U.S. 2021-NCCOA-612 Opinion of the Court Plaintiffs’ motion to dismiss Defendant’s appeal was referred to this Panel. Also on CRYAN V. NAT’L COUNCIL OF YOUNG MEN’S CHRISTIAN ASS’N OF THE U.S.
2021-NCCOA-612
CARPENTER, J., dissenting
¶ 27 The issues Defendant raises on appeal present the central question of whether the constitutional challenge to N.C. Gen. Stat. § 1-17(e) should be heard by a three- judge panel or an individual judge in Forsyth County. Defendant is not asking this Court to decide the constitutionality of the statute—nor is this Court the proper place to do so. Consequently, while Defendant’s raised issue is “significant” and “important” to the parties, it does not introduce a matter so pressing that the denial of Defendant’s petition would negatively affect the “efficient administration of justice” or work against our judicial economy. See Stetser, 165 N.C. App. at 12, 598 S.E.2d at 578-79; see also Stubhub, 219 N.C. App. at 232, 727 S.E.2d at 554. ¶ 28 Rather, Defendant’s sub-issue—whether Defendant’s constitutional challenge is an as-applied or facial constitutional challenge—is a determination best made by the trial court and filtered through the statutory scheme prescribed by the legislature. See N.C. Gen. Stat. § 1-267.1 (2019). The trial court had the benefit of hearing arguments of counsel and receiving memoranda on the issues. Further, when the constitutional challenge is ultimately decided by the three-judge panel in Wake County Superior Court, the matter may be remanded back to the trial court upon any initial determination by the three-judge panel that it lacks jurisdiction to rule on the challenge because it is not a facial challenge. The legislature has contemplated and incorporated a de facto review of the initial determination of the trial judge by the appointed three judge panel. This Court’s grant of a petition for writ of certiorari to CRYAN V. NAT’L COUNCIL OF YOUNG MEN’S CHRISTIAN ASS’N OF THE U.S. 2021-NCCOA-612 CARPENTER, J., dissenting consider whether jurisdiction is proper with a three-judge panel in Wake County Superior Court based solely on Defendant’s assertion its constitutional challenge is “as-applied” shortcuts the statutory scheme prescribed by the legislature, would be an inappropriate circumvention of the process, and therefore would not “promote judicial economy,” but would interfere with the “efficient administration of justice.” See Stetser, 165 N.C. App. at 12, 598 S.E.2d at 578-79; see also Stubhub, 219 N.C. App. at 232, 727 S.E.2d at 554. ¶ 29 The legislature set forth a statutory scheme to address constitutional challenges to statutes. See N.C. Gen. Stat. § 1-267.1. In brief, a trial court determines, either by statutory mandate or in its discretion, to transfer subject matter jurisdiction of a constitutional challenge to a three-judge panel in Wake County; upon transfer, the issue is within the jurisdiction of the three-judge panel. In granting Defendant’s petition for writ of certiorari, this Court will create precedent for a new procedure whereby a party that disagrees with a trial judge’s referral of a constitutional challenge to a three-judge panel can petition this Court for a writ of certiorari. In such an instance, this Court will be tasked with explaining why the raised constitutional challenge in the case currently before it is distinguishable from any future constitutional challenge. The precedent that flows from the majority’s opinion will create a dilemma in which any disagreement between the parties as to whether a constitutional challenge is “facial” or “as applied” will be decided by this CRYAN V. NAT’L COUNCIL OF YOUNG MEN’S CHRISTIAN ASS’N OF THE U.S. 2021-NCCOA-612 CARPENTER, J., dissenting Court, rather than by the three-judge panel prescribed by statute. The precedent established here therefore has the potential to eliminate the role of the statutory three-judge panel in future constitutional challenges. ¶ 30 This Court, by granting Defendant’s petition for writ of certiorari, will also unwittingly decide that multiple classes in fact exist for purposes of the constitutionality of N.C. Gen. Stat. § 1-17(e). To do so is to take a critical step in determining the ultimate outcome of the central issue of the case before the trial court. It would be prudent for this Court to refrain from exercising its jurisdiction to grant Defendant’s petition for writ of certiorari in favor of and in deference to the statutory scheme prescribed by the legislature in N.C. Gen. Stat. § 1-267.1. ¶ 31 Lastly, granting Defendant’s petition for writ of certiorari creates an avenue for a party to draw out litigation, contrary to our goal of promoting judicial economy. The majority’s grant incentivizes parties who wish to delay a trial on the merits of a case to petition this Court for a decision as to whether the referral of an issue to the three-judge panel was proper in every instance. The risk of the emergence of such unnecessary appeals is exaggerated by the majority’s declination to identify reasons for this case’s unique importance or necessity to the protection of the interests of justice. In the future, this Court should expect petitions for writ of certiorari arising from similar referrals to three-judge panels. When the petitions arrive, this Court will have no precedence on which we may rely to deny granting certiorari to hear a CRYAN V. NAT’L COUNCIL OF YOUNG MEN’S CHRISTIAN ASS’N OF THE U.S. 2021-NCCOA-612 CARPENTER, J., dissenting challenge to a superior court judge’s order transferring a constitutional challenge of a statute to a three-judge panel. ¶ 32 Because I would determine jurisdiction to decide the constitutional issue is proper before the three-judge panel in Wake County, I would deny Defendant’s petition for writ of certiorari. I therefore respectfully dissent.