Diggs v. North Carolina Department of Health & Human Services
Diggs v. North Carolina Department of Health & Human Services
Opinion of the Court
This appeal arises from an order issued by the trial court reversing a declaratory ruling of the North Carolina Department of Health and Human Services (“DHHS”) requested by Patricia Diggs (“petitioner”). Petitioner, a custodial parent of three children and the former adult caretaker of her niece, Shae Little, petitioned DHHS on 1 June 2001 for a declaratory ruling pursuant to N.C. Gen. Stat. § 150B-4 alleging the practice of calculating the debt owed to the State when an adult caretaker accepts payment of benefits under the Work First Families Assistance (“WFFA”) and Temporary Assistance to Needy Families (“TANF”) programs or its predecessor, Aid to Families with Dependent Children (“AFDC”), was invalid. By doing so, petitioner represented she was aggrieved as defined by the North Carolina Administrative Procedure Act (“NCAPA”) by the challenged practice. DHHS issued a declaratory ruling on 30 July 2001 upholding the validity of the challenged practice. Petitioner sought judicial review of the declaratory ruling in the Superior Court of Mecklenburg County, and in an amended order entered 17 December 2001, the Honorable Claude S. Sitton reversed the ruling of DHHS, finding the challenged practice violated . North Carolina law and was, therefore, void and of no effect. The trial court limited its order to petitioner’s case only. Petitioner appeals as to the scope
DHHS, through the Office of Child Support Enforcement of the Division of Social Services, is responsible for the operation of North Carolina’s child support enforcement program. North Carolina provides assistance to families with dependent children who are deprived of financial support through the WFFA program, operated pursuant to a federal block grant under the TANF program.
Petitioner asserts she is a “person aggrieved” within the meaning of N.C. Gen. Stat. §§ 150B-2(6) and 150B-4 and is entitled to request a declaratory ruling to determine her rights, duties, and obligations because DHHS combines the debts to the State for all monthly cash assistance grants ever paid to the same adult caretaker into a single URPA account.
Petitioner asserts she is a person aggrieved. As a former public assistance recipient under both the TANF program and the preceding AFDC program, petitioner argues DHHS’ practice of debt repayment may directly affect her. Specifically, petitioner contends future child support payments for the care of her children may be usurped to repay the public assistance previously paid solely for Shae Little.
Petitioner illustrates this contention with two hypothetical situations involving whether child support paid by the biological father of petitioner’s children, James Stitt (“Stitt”), pursuant to a court order for the support of their biological children may be taken by the State for reimbursement of earlier and separate public assistance grants made solely for the use and benefit of petitioner’s niece, Shae Little. Shae Little no longer lives with petitioner’s family, nor does petitioner receive public assistance. While petitioner cared for Shae Little, public assistance in the form of “child-only” grants was paid solely for the needs of Shae Little.
In her first hypothetical, petitioner argues if she becomes unemployed and if Stitt ceases to pay child support, petitioner may need TANF assistance for her children. Petitioner further hypothesizes if she has no other income at that time and if all other facts remain as they are presently, she would be eligible for a TANF grant. Thereafter, if Stitt pays child support in the same month petitioner receives
In her second hypothetical, petitioner argues if she and her children receive TANF assistance and if Stitt pays no child support during that time, petitioner’s URPA balance and Stitt’s unpaid child support arrearages will increase. If Stitt’s federal tax refunds are intercepted for purposes of paying child support arrearages, then petitioner correctly asserts that, under the current practice, DHHS would retain all of that interception until the URPA balance is reduced to zero, meaning part of Stitt’s intercepted tax refund would be used to pay the debt created by the previous State support payments for petitioner’s niece, to whom Stitt owes no obligation of support.
The flaw in these arguments is manifest: petitioner is not presently aggrieved. At most, petitioner may be aggrieved at some unspecified point in the future if certain events occur. Nothing in the record indicates these events are certain to come to pass, are imminently threatened, or are even likely to occur. At most, if a number of variables happen in the manner laid out by petitioner’s hypotheticals, then at that point, petitioner will become aggrieved; however, it is quite clear that petitioner has not “demonstrate[d] that her . . . legal rights have been in some way impaired.” In re Denial of Request for Full Admin. Hearing, 146 N.C. App. at 261, 552 S.E.2d at 232. Therefore, petitioner is not presently a “person aggrieved” and was not entitled to request a declaratory ruling under N.C. Gen. Stat. § 150B-4. ■
Petitioner asserts, in the alternative, that an issued declaratory ruling is binding on both the requesting party and the issuing agency unless it is altered or set aside by the courts; therefore, petitioner would be bound in the future by DHHS’ practice absent judicial review of the ruling. N.C. Gen. Stat. § 150B-4 (2001). In short, petitioner argues because DHHS chose to issue a declaratory ruling and because a validly issued declaratory ruling is binding on the requesting party, petitioner became a “person aggrieved” within the meaning of the NCAPA when DHHS issued the ruling.
In sum, we find it is not necessary to reach the merits or scope of the declaratory ruling. Petitioner was not aggrieved, as required by N.C. Gen. Stat. § 150B-4, by the URPA accounting method at the time the request for a declaratory ruling was made; therefore, no valid declaratory ruling issued. Accordingly, petitioner’s claim of aggrieved status due to the issuance of a valid and binding declaratory ruling is without merit. The order of the trial court is set aside. We remand to the trial court with instructions to remand to and order that the agency vacate the declaratory ruling.
Vacated and remanded with instructions.
. Prior to January 1, 1997, assistance was provided under the AFDC program. With the passage of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, Congress repealed the AFDC program and replaced it with the TANF program.
. North Carolina General Statute § 150B-4 states in relevant part:
On request of a person aggrieved, an agency shall issue a declaratory ruling as to the validity of a rule or as to the applicability to a given state of facts of a statute administered by the agency or of a rule or order of the agency, except when the agency for good cause finds issuance of a ruling undesirable.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.