Boone Ford, Inc. v. IME Scheduler, Inc.
Boone Ford, Inc. v. IME Scheduler, Inc.
Opinion
This appeal concerns two cases that were consolidated before trial by one superior court judge and then tried by another superior court judge. We hold that the first judge erred in consolidating these cases because he was not scheduled to preside over the consolidated trial, but that the judge who presided at trial effectively corrected that error, leaving the trial and judgment untainted. We therefore reverse the decision of the Court of Appeals and remand this case to the Court of Appeals for additional proceedings.
In February 2014, appellant Boone Ford, Inc. filed a complaint against appellee IME Scheduler, Inc. In its complaint, Boone Ford set forth five claims for relief relating to IME Scheduler's contemplated purchase of a Ford Raptor truck from Boone Ford. That purchase never occurred. In its answer, IME Scheduler asserted five counterclaims against Boone Ford arising out of the same failed transaction. That September, co-appellee Cash for Crash, LLC filed its own complaint against Boone Ford, alleging conversion and other torts based on an accidental wire transfer of $206,569 that, according to Cash for Crash's complaint, Boone Ford refused to return for three months. It is undisputed that *366 IME Scheduler and Cash for Crash were both owned by the same man, Mikhail Heifitz, when the events at issue in both lawsuits took place. In its answer to Cash for Crash's complaint, Boone Ford moved to consolidate the two cases.
The superior court held a hearing on Boone Ford's motion to consolidate in April 2015, with Judge Jeff Hunt presiding. During the hearing, Judge Hunt said that he did not know who would preside at trial. There is no evidence in the record that Judge Hunt expected to be, or was scheduled to be, the presiding judge at trial. Judge Hunt granted the motion the day after the hearing.
Judge William H. Coward was ultimately assigned to preside at trial. In January 2016, he approved a pretrial order setting out various stipulations of the parties. He presided over the consolidated trial in February 2016. The record contains no indication that any party moved to sever the consolidated cases or asked Judge Coward to reconsider whether the cases should have been consolidated. The jury returned a verdict in Boone Ford's favor, and Judge Coward issued a judgment that awarded Boone Ford $70,000 in damages plus interest and costs.
IME Scheduler and Cash for Crash appealed that judgment to the Court of Appeals, arguing, among other things, that the cases had been improperly consolidated. In a split decision, the Court of Appeals agreed with that argument, vacated Judge Hunt's consolidation order, and remanded the newly unconsolidated cases to superior court.
Boone Ford, Inc. v. IME Scheduler, Inc.
, --- N.C. App. ----, ----,
In
Oxendine
, Judge Forrest A. Ferrell-the judge who was presiding over pretrial matters in the superior court action in that case-granted a motion to consolidate two actions even though "[t]here was no indication that he was scheduled to preside" at the trial of the consolidated cases.
Here, Judge Hunt stood in the same position that Judge Ferrell did in Oxendine . There was no indication in this case, either at the consolidation hearing or at any other time, that Judge Hunt was scheduled to preside over the consolidated trial. As we have already said, Judge Hunt noted at the consolidation hearing that he did not know who would preside at trial. Like Judge Ferrell in Oxendine , then, Judge Hunt made a procedural error in issuing the consolidation order in question.
This does not end our analysis, however, because Judge Coward had the authority to make his own determination on consolidation. Under
Oxendine
, Judge Hunt's consolidation order could not bind Judge Coward.
*367
Because we presume that judges know the law,
see
Sanders v. Ellington
,
It is worth emphasizing the dramatically different postures in which this case and
Oxendine
came before our Court. The plaintiffs in
Oxendine
filed an interlocutory appeal less than a week after the entry of the consolidation order.
See
The
Oxendine
rule-that is, the rule that "the discretionary ruling of one superior court judge to consolidate claims for trial may not be forced upon another superior court judge who is to preside at that trial,"
id. at 704,
The
holding
of
Oxendine
, however, is on somewhat shakier ground.
Oxendine
could have held that Judge Ferrell's consolidation order could not bind any later-in-time judge but that the order was still valid until a later-in-time judge made a different determination. Instead,
Oxendine
held that it was improper for Judge Ferrell even to issue the consolidation order in the first place.
See
*368 In fact, Oxendine 's holding-that the judge who is assigned to hear preliminary matters but not scheduled to preside at trial cannot even issue an order consolidating related cases-cannot be easily harmonized with modern-day best practices for litigation. Because of the rotation process used to assign superior court judges, the judge hearing preliminary motions is often not the judge scheduled to preside at trial. Under Oxendine , it is therefore difficult to consolidate cases early in the litigation process absent a stipulation by the parties, even if consolidation is clearly justified on the merits. And waiting to consolidate until the eve of trial results in additional last-minute work for both judges and lawyers. Lawyers usually prefer to prepare cases as they will be tried, and Boone Ford correctly suggests in its brief that even work as prosaic as the preparation of trial notebooks and exhibits might be disrupted if cases are consolidated right before trial. In the meantime, lawyers and litigants may also waste time and effort on duplicative discovery matters. With all of that in mind, Judge Hunt's early consolidation order, although procedurally improper, made good practical sense.
The concurring opinion tries to resolve this tension by arguing that Judge Hunt did not commit error in this case at all. But
Oxendine
's holding simply cannot be squared with a conclusion that no error occurred here. Both here and in
Oxendine
, a judge not scheduled to preside at trial consolidated two cases for trial, and
Oxendine
declared that the consolidation in that case was "procedurally in error,"
And Oxendine has been good law for nearly four decades. We should not casually disturb our longstanding precedent, and we do not need to disturb it today to decide this case. It is enough to say that the judge who presides at a consolidated trial can effectively correct the procedural error that an earlier judge makes under Oxendine . We hold that Judge Coward's implicit determination that the cases in question should be consolidated for trial replaced Judge Hunt's determination on consolidation and corrected the procedural error that Judge Hunt had made. We therefore reverse the decision of the Court of Appeals and remand this case to the Court of Appeals to consider other issues that its decision did not reach.
REVERSED AND REMANDED.
Justice NEWBY concurring in the result only.
Parties need to know the structure of the trial as early as possible to plan for the presentation of witnesses and evidence, to organize exhibits, and to conduct trial preparation generally. Rule 42 of the North Carolina Rules of Civil Procedure contemplates a pretrial procedure to consolidate matters for trial. This case illuminates the tension arising under our Rules of Civil Procedure as we adapt them to a system of rotating superior court judges. It appears this early notification of consolidation happened here. I agree with the majority that Judge Hunt's consolidation order had no binding effect on Judge Coward because Judge Hunt was not scheduled to preside over the trial. Any party objecting to the consolidation could have presented the matter afresh to the judge presiding at trial. Judge Coward, having the authority to make the final decision on consolidation, could have divided the cases for trial, but he did not. By ultimately trying the cases together, the presiding judge implicitly ratified the consolidation decision, leaving the trial and judgment untainted. Thus, Judge Hunt's initial decision to consolidate was a proper pretrial order, acquiesced to by *369 the parties and ultimately ratified by the presiding judge at trial. Accordingly, I do not believe Judge Hunt committed "error." My concern is that, by labeling a preliminary pretrial consolidation order "error," the majority opinion will squelch the entry of these useful orders contemplated by Rule 42. Therefore, I concur in the result only.
Rule 42(a) of the North Carolina Rules of Civil Procedure governs the consolidation of claims in state court and authorizes the trial court to consolidate pending actions involving a common question of law or fact:
[T]he judge may order a joint hearing or trial of any or all the matters in issue in the actions; he may order all the actions consolidated; and he may make such orders concerning proceedings therein as may tend to avoid unnecessary costs or delay.
N.C.G.S. § 1A-1, Rule 42(a) (2017). In allocating this authority, the plain text of Rule 42 makes no distinction as to the judge who presides over the pretrial matters or trial.
We have often said that "one superior court judge ordinarily may not overrule a prior judgment of another superior court judge in the same case on the same issue."
State v. Duvall
,
This case illustrates the challenge arising under our Rules of Civil Procedure as we apply them to a system of rotating superior court judges.
See
N.C. Const. art. IV, § 11 ("The principle of rotating Superior Court Judges among the various districts of a division is a salutary one and shall be observed."). Relevant here, we have held that a pretrial ruling made by a superior court judge who is not scheduled to preside over the trial that consolidates claims for trial does not bind the superior court judge who actually tries the case. "[T]he discretionary ruling of one superior court judge to consolidate claims for trial may not be forced upon another superior court judge who is to preside at that trial."
Oxendine v. Catawba Cty. Dep't of Soc. Servs.
,
Here, since Judge Hunt was not scheduled to preside over the consolidated trial, his procedural consolidation order had no binding effect on Judge Coward. As the majority notes, trial court judges are presumed to
*370
know the law.
Sanders v. Ellington
,
The rule in Oxendine , that the authority to consolidate cases for trial ultimately remains in the hands of the judge who will preside at the trial, does not preclude a trial judge from making a non-binding, preliminary determination that consolidation is warranted in the pretrial stages. This interpretation harmonizes the rule in Oxendine with our North Carolina Rules of Civil Procedure, which expressly contemplate these pretrial matters and allocate the authority to the presiding judge to consolidate without reservation. Nonetheless, parties need as much notice as possible if matters are to be consolidated for trial. Thus, a preliminary ruling on consolidation in the pretrial stages benefits the trial process and thereby serves the ends of justice. Accordingly, I believe no error was committed by the process used here.
Notably, the Superior Court Judges' Benchbook cites Oxendine for the proposition that "[i]t is within the discretion of the judge presiding at trial whether to consolidate for trial actions that involve common questions of law and fact," but does not explicitly state that a judge not scheduled to preside at trial may not issue a consolidation order. Michael Crowell, North Carolina Superior Court Judges' Benchbook , General: One Trial Judge Overruling Another 5 (School of Gov't, Univ. of N.C. at Chapel Hill, Jan. 2015), https://benchbook.sog.unc.edu/judicial-administration-and-general-matters/one-trial-judge-overruling-another. The Benchbook thus summarizes Oxendine 's rule but not its holding.
Clearly, the judge presiding over pretrial matters can consolidate those matters for discovery and other pretrial purposes as needed.
While this Court decided
Oxendine
after our adoption of the Rules of Civil Procedure, it relied on a pre-Rules case.
See
Oxendine
,
Reference
- Full Case Name
- BOONE FORD, INC. D/B/A Boone Ford Lincoln Mercury, Inc., a Delaware Corporation v. IME SCHEDULER, INC., a New York Corporation and Cash for Crash, LLC, a New Jersey Limited Liability Company v. Boone Ford, Inc. D/B/A Boone Ford Lincoln Mercury, Inc., a Delaware Corporation
- Cited By
- 1 case
- Status
- Published
- Syllabus
- Appeal from order consolidating cases whether the judge who entered the order lacked authority to do so because a different judge presided over the matter at trial and whether, if so, the resulting procedural error requires vacatur of the judgment below.