v.
Wake Stone Corp.
No. COA24-914
Filed 18 June 2025
Wake County, No. 23CV024626-910
NORTH CAROLINA DEPARTMENT OF ENVIRONMENTAL QUALITY, DIVISION
OF ENERGY, MINERAL, AND LAND RESOURCES, Petitioner,
v.
WAKE STONE CORPORATION, Respondent.
Appeal by third-party petitioners from order entered 19 February 2024 by
Judge Gale M. Adams in Wake County Superior Court. Heard in the Court of Appeals
18 March 2025.
Calhoun, Bhella & Sechrest, LLP, by James L. Conner, II and Shannon M. Arata, for petitioners-appellants The Umstead Coalition, Randal Dunn, and Tamara Dunn.
Ward & Smith, P.A., by A. Charles Ellis and Hayley R. Wells, for respondent- appellee Wake Stone Corporation.
Attorney General Jeff Jackson, by Assistant Attorney General Carolyn McLain and Assistant Attorney General Kyle Peterson, for petitioner-appellee North Carolina Department of Environmental Quality.
DILLON, Chief Judge.
Appellants The Umstead Coalition and Randal and Tamara Dunn wish to challenge the issuance of a mining permit to Wake Stone Corporation (“Wake Stone”). To accomplish this, they moved to intervene in a contested case hearing between Wake Stone and the North Carolina Department of Environmental Quality, Division
N.C. DEP’T OF ENVTL. QUALITY V. WAKE STONE CORP.
Opinion of the Court
of Energy, Mineral, and Land Resources (the “Division”). Appellants’ motions were denied in the administrative proceeding, and their appeal of that denial was affirmed by the Wake County Superior Court. Appellants appeal the superior court’s order in its entirety, arguing that they should have been allowed to intervene, that the case is not moot, and that the Administrative Law Judge (“ALJ”) erred in reversing the Division’s denial of the permit. For the reasoning below, we affirm the order of the superior court. I. Background Wake Stone operates Triangle Quarry, a mining operation located adjacent to William B. Umstead State Park and the Raleigh-Durham Airport in Wake County. In April 2020, Wake Stone applied to the Division to modify its mining permit under The Mining Act of 1971, N.C.G.S. § 74-46 et seq., to expand its operations onto a parcel of land called the Odd Fellows Tract. In February 2022, the Division issued its decision denying Wake Stone’s application. In March 2022, Wake Stone timely petitioned for a contested case hearing before an ALJ pursuant to N.C.G.S. § 150B-23(a) (2023). At this stage, The Umstead Coalition (a nonprofit organization dedicated to preserving Umstead Park) and the Dunns (Coalition members who own a home adjacent to the Odd Fellows Tract) (collectively, “Appellants”) filed motions to intervene as parties pursuant to Rule 24 of our Rules of Civil Procedure. The ALJ denied each motion, but did allow The N.C. DEP’T OF ENVTL. QUALITY V. WAKE STONE CORP.
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Umstead Coalition to file an amicus curiae brief before the hearing. In August 2023, the ALJ issued his decision, reversing the Division’s denial of the permit on four independent grounds. The next month, in September 2023, the Division filed a petition for judicial review of the ALJ’s decision but subsequently settled with Wake Stone and withdrew its petition with prejudice in November 2023. In the meantime, on 11 September 2023, Appellants filed petitions for judicial review contesting both the ALJ’s denial of their motions to intervene and the ALJ’s reversal of the Division’s denial of the permit application. In February 2024, in a forty-six-page order, the trial court determined Appellants’ petitions were mooted in their entirety by the settlement of the underlying controversy between Wake Stone and the Division and the issuance of Wake Stone’s permit. The trial court further reasoned in its order that, even if Appellants’ petitions were not moot, the ALJ did not err either in denying the motions to intervene or in reversing the Division’s denial of the permit. Appellants appealed. II. Analysis On appeal, Appellants argue they should have been allowed to intervene as parties, that their petitions for judicial review were not moot, and that the ALJ’s reversal of the Division’s denial of Wake Stone’s permit application was erroneous. We address each argument in turn. A. Intervention of Right and Permissive Intervention N.C. DEP’T OF ENVTL. QUALITY V. WAKE STONE CORP.
[*3]Opinion of the Court
Rule 24 of our Rules of Civil Procedure governs intervention of parties. N.C.G.S. § 1A-1, Rule 24 (2023). Rule 24(a)(2) provides that an applicant shall be permitted to intervene if he claims an interest relating to the property or transaction which is the subject of the action and he is so situated that the disposition of the action may as a practical matter impair or impede his ability to protect that interest, unless the applicant’s interest is adequately represented by existing parties. Id. § 1A-1, Rule 24(a)(2). Our Supreme Court interprets Rule 24 to require a putative intervenor to “show that (1) it has a direct and immediate interest relating to the property or transaction, (2) denying intervention would result in a practical impairment of the protection of that interest, and (3) there is inadequate representation of that interest by existing parties.” Virmani v. Presbyterian Health, 350 N.C. 449, 459 (1999). To show a “direct and immediate interest,” the putative intervenor must prove “he will either gain or lose by the direct operation and effect of the judgment[.]” Strickland v. Hughes, 273 N.C. 481, 485 (1968). “[A]n indirect, inconsequential, or a contingent” interest is not sufficient. Id. Rule 24(b)(2) provides for permissive intervention “[w]hen an applicant’s claim or defense and the main action have a question of law or fact in common.” N.C.G.S. § 1A-1, Rule 24(b)(2). Permissive intervention is a matter of the court’s discretion, considering “whether the intervention will unduly delay or prejudice the adjudication N.C. DEP’T OF ENVTL. QUALITY V. WAKE STONE CORP.
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of the rights of the original parties.” Id. A discretionary ruling under Rule 24(b)(2) “is to be accorded great deference and will be upset only upon a showing that it was so arbitrary that it could not have been the result of a reasoned decision.” White v. White, 312 N.C. 770, 777 (1985).
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[*6]Opinion of the Court N.C. DEP’T OF ENVTL. QUALITY V. WAKE STONE CORP.
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[*9]Opinion of the Court