Title: In re Redmond

State: north-carolina

Issuer: North Carolina Supreme Court

Document:

IN THE SUPREME COURT OF NORTH CAROLINA 
No. 86A16   
Filed 17 March 2017 
IN THE MATTER OF KAY FRANCES REDMOND, by and through LINDA 
NICHOLS, Administratrix of the Estate of Kay Frances Redmond, Claim for  
Compensation Under the North Carolina Eugenics Asexualization and Sterilization 
Compensation Program 
 
Appeal pursuant to N.C.G.S. § 7A-30(2) from the decision of a divided panel of 
the Court of Appeals, ___ N.C. App. ___, 785 S.E.2d 111 (2016), dismissing an appeal 
from a decision and order filed on 27 April 2015 by the North Carolina Industrial 
Commission and remanding the matter to the Commission for transfer to the 
Superior Court, Wake County, pursuant to N.C.G.S. § 1-267.1(a1).  On 9 June 2016, 
the Supreme Court allowed the State’s petition for discretionary review of additional 
issues.  Heard in the Supreme Court on 13 February 2017. 
UNC Center for Civil Rights, by Elizabeth Haddix and Mark Dorosin; and 
Pressly, Thomas & Conley, PA, by Edwin A. Pressly, for claimant-
appellant/appellee. 
Joshua H. Stein, Attorney General, by Elizabeth A. Fisher, Assistant Solicitor 
General, and Amar Majmundar, Special Deputy Attorney General, for 
defendant-appellant/appellee State of North Carolina. 
 
JACKSON, Justice.  
 
In this case we consider whether the North Carolina Court of Appeals has 
jurisdiction to consider claimant’s constitutional challenge to an act of the General 
Assembly on appeal from a final decision and order of the North Carolina Industrial 
IN RE REDMOND 
 
Opinion of the Court 
 
 
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Commission.  Because we conclude that the Court of Appeals has jurisdiction to reach 
the merits of claimant’s constitutional challenge, we reverse the Court of Appeals’ 
dismissal of claimant’s appeal and remand this case to that court to consider the 
merits of claimant’s constitutional challenge.   
In 1956 claimant Kay Frances Redmond was sterilized involuntarily at the age 
of fourteen by order of the now-dismantled Eugenics Board of North Carolina 
pursuant to Chapter 224 of the Public Laws of North Carolina of 1933.  See N.C.G.S. 
§ 35-39 (1950) (repealed 2003).  Claimant passed away in 2010.  In 2013 the General 
Assembly established the Eugenics Asexualization and Sterilization Compensation 
Program (Compensation Program) to provide “lump-sum compensation” to any 
“claimant determined to be a qualified recipient.”  Id. § 143B-426.51 (2013).  A 
qualified recipient was “[a]n individual who was asexualized involuntarily or 
sterilized involuntarily under the authority of the Eugenics Board of North Carolina 
in accordance with Chapter 224 of the Public Laws of 1933 or Chapter 221 of the 
Public Laws of 1937.”  Id. § 143B-426.50(5) (2013).  More relevant to this case, a 
claimant was defined as “[a]n individual on whose behalf a claim is made for 
compensation as a qualified recipient” who was “alive on June 30, 2013.”1  Id. § 143B-
426.50(1) (2013). 
                                            
1  The Compensation Program expired as provided in the 2013 enabling act, as 
amended in 2014.  See [The] Current Operations and Capital Improvements Appropriations 
Act of 2013, ch. 360, secs. 6.18(a)-(g), 2013 N.C. Sess. Laws 995, 1019-23 (making pertinent 
provisions of the statutes creating the Program effective July 1, 2013, and setting an 
IN RE REDMOND 
 
Opinion of the Court 
 
 
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Claimant’s estate filed a claim pursuant to the Compensation Program to the 
North Carolina Industrial Commission (the Commission); however, the claim initially 
was determined to be ineligible because claimant was not alive on 30 June 2013, as 
required by subsection 143B-426.50(1).  That conclusion was upheld following an 
evidentiary hearing before a deputy commissioner.  On appeal to the full Commission, 
claimant raised a constitutional challenge to subsection 143B-426.50(1), arguing that 
the requirement that a claimant be alive on 30 June 2013 violates the guarantees of 
equal protection and due process in Article I, Section 19 of the North Carolina 
Constitution and the Fourteenth Amendment to the United States Constitution.  The 
full Commission denied the claim for not meeting the subsection 143B-426.50(1) 
criteria, but certified the constitutional question to the Court of Appeals.  In certifying 
the question, the Commission noted the lack of an explicit statutory framework for 
doing so.  In contrast to N.C.G.S. § 97-86, which gives the Commission statutory 
authority to certify questions of law to the Court of Appeals in workers’ compensation 
cases, the Commission observed that the statutes providing adjudicatory authority to 
the Commission here pursuant to the Compensation Program contain no such 
provision.  Claimant appealed the final decision of the full Commission to the Court 
of Appeals. 
                                            
expiration date of June 30, 2015, except for final adjudication of any claims still pending on 
that date), as amended by The Current Operations and Capital Improvements 
Appropriations Act of 2014, ch. 100, secs. 6.13(a)-(f), 2013 N.C. Sess. Laws (Reg. Sess. 2014) 
328, 346-48 (adding, inter alia, a provision stating that the Office of Justice for Sterilization 
Victims also expired on June 30, 2015). 
IN RE REDMOND 
 
Opinion of the Court 
 
 
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The Court of Appeals did not reach the constitutional question raised in 
claimant’s appeal.  In re Hughes, ___ N.C. App. ___, ___, 785 S.E.2d 111, 116 (2016).2  
Instead, the Court of Appeals held that it did not have jurisdiction to consider 
claimant’s appeal from the full Commission because any challenge to the 
constitutionality of an act of the General Assembly first must be submitted to a three-
judge panel of the Superior Court of Wake County pursuant to N.C.G.S. § 1-267.1(a1).  
Id. at ___, 785 S.E.2d at 116.  Consequently, the Court of Appeals dismissed 
claimant’s appeal and remanded the case to the Commission to transfer “those 
portions of the action[ ] challenging the constitutional validity of N.C. Gen.[ ]Stat. 
§ 143B-426.50(1)” to Wake County for resolution by a three-judge panel.  Id. at ___, 
785 S.E.2d at 116.  Both claimant and the State have appealed the Court of Appeals’ 
dismissal of the appeal to this Court and argue that the Court of Appeals has 
jurisdiction to consider claimant’s constitutional challenge to subsection 143B-
426.50(1).  We agree. 
Eligibility for compensation pursuant to the Compensation Program is 
determined by the North Carolina Industrial Commission.  N.C.G.S. § 143B-426.52(c) 
(2013).  “[I]nitial determinations of eligibility for compensation” are made by a deputy 
commissioner upon review of “the claim and supporting documentation submitted on 
                                            
2  On appeal to the Court of Appeals, claimant’s case was combined with those of two 
other claimants—one being Mary Lucille Hughes—who were also deemed ineligible for the 
Compensation Program by the Commission pursuant to subsection 143B-426.50(1).  See In 
re Hughes, ___ N.C. App. at ___, 785 S.E.2d at 112.    
IN RE REDMOND 
 
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behalf of a claimant.”  Id. § 143B-426.53(b) (2013).  In determining eligibility, the 
Commission has “all powers and authority granted under Article 31 of Chapter 143 
of the General Statutes.”  Id. § 143B-426.53(a) (2013).  Article 31, Chapter 143, 
commonly referred to as the Tort Claims Act, states that the Commission is 
“constituted a court for the purpose of hearing and passing upon tort claims against 
the State Board of Education, the Board of Transportation, and all other 
departments.”  Id. § 143-291(a) (2015).  Section 143B-426.53 of the Compensation 
Program statutes provides for multiple stages of review within the Commission and 
an ultimate appeal as of right from a decision of the full Commission to the Court of 
Appeals “in accordance with the procedures set forth in G.S. 143-293 and G.S. 143-
294.”  Id. § 143B-426.53(d)-(f) (2013). 
Although the Commission acts as a court for purposes of the Tort Claims Act 
and for determining eligibility of claimants pursuant to the Compensation Program, 
see id. § 143B-426.53(a), the Commission’s judicial power is limited, or quasi-judicial.  
We have determined that the Commission “is not a court with general implied 
jurisdiction” but “primarily is an administrative agency of the state” granted judicial 
power “as is necessary to perform the duties required of it by the law which it 
administers.”  Hogan v. Cone Mills Corp., 315 N.C. 127, 137, 337 S.E.2d 477, 483 
(1985) (citation omitted).   That judicial power clearly does not extend to consideration 
of constitutional questions, as it is a “well-settled rule that a statute’s 
constitutionality shall be determined by the judiciary, not an administrative board.”  
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Meads v. N.C. Dep’t of Agric., 349 N.C. 656, 670, 509 S.E.2d 165, 174 (1998); see also 
State ex rel. Utils. Comm’n v. Carolina Util. Customers Ass’n, 336 N.C. 657, 673-74, 
446 S.E.2d 332, 341-42 (1994); Gulf Oil Corp. v. Clayton, 267 N.C. 15, 20, 147 S.E.2d 
522, 526 (1966); Great Am. Ins. Co. v. Gold, 254 N.C. 168, 173, 118 S.E.2d 792, 796 
(1961), overruled on other grounds by Smith v. State, 289 N.C. 303, 222 S.E.2d 412 
(1976). 
Similar to the limited judicial power of the Industrial Commission, the North 
Carolina Utilities Commission is “deemed to exercise functions judicial in nature and 
[to] have all the powers and jurisdiction of a court of general jurisdiction as to all 
subjects over which the Commission has or may hereafter be given jurisdiction by 
law.”  Carolina Util. Customers Ass'n, 336 N.C. at 673, 446 S.E.2d at 342 (quoting 
N.C.G.S. § 62-60 (1989)).  Such power is properly exercised “[f]or the purpose of 
conducting hearings, making decisions and issuing orders, and in formal 
investigations where a record is made of testimony under oath.”  Id. at 673, 446 
S.E.2d at 342 (quoting N.C.G.S. § 62-60).  When an interested party argued that this 
judicial power authorized the Utilities Commission to determine the constitutionality 
of a statute falling within the Utilities Commission’s administrative purview, we 
concluded that “[a]s an administrative agency created by the legislature, the 
Commission has not been given jurisdiction to determine the constitutionality of 
legislative enactments.”  Id. at 674, 446 S.E.2d at 342. 
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Although not controlling on this Court, we note with approval the Court of 
Appeals’ reasoning in a similar case.  When the Industrial Commission determined 
in its opinion and award that certain changes to the Workers’ Compensation Act 
violated the Due Process Clause of the United States Constitution, the Court of 
Appeals vacated the opinion and award, citing the “well-settled rule that a statute’s 
constitutionality shall be determined by the judiciary, not an administrative board.”  
Carolinas Med. Ctr. v. Emp’rs & Carriers, 172 N.C. App. 549, 553, 616 S.E.2d 588, 
591 (2005) (quoting Meads, 349 N.C. at 670, 509 S.E.2d at 174).  In reaching this 
holding, the court reasoned that a party has at least two avenues to challenge the 
constitutionality of a statute.  Id. at 553, 616 S.E.2d at 591.  First, the party asserting 
the constitutional challenge may bring “an action under the Uniform Declaratory 
Judgment Act, N.C. Gen. Stat. § 1-253 et seq. (2004).”  Id. at 553, 616 S.E.2d at 591 
(“A petition for a declaratory judgment is particularly appropriate to determine the 
constitutionality of a statute when the parties desire and the public need requires a 
speedy determination of important public interests involved therein.” (quoting 
Woodard v. Carteret County, 270 N.C. 55, 60, 153 S.E.2d 809, 813 (1967))).  
“Alternatively, pursuant to N.C. Gen. Stat. § 97-86 the Industrial Commission of its 
own motion could have certified the question of the constitutionality of the statute to 
this Court before making its final decision.”  Id. at 553, 616 S.E.2d at 591. 
Section 97-86 states:  “The Industrial Commission of its own motion may 
certify questions of law to the Court of Appeals for decision and determination by said 
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Opinion of the Court 
 
 
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Court.”  N.C.G.S. § 97-86 (2015).  Although this provision is part of the Workers’ 
Compensation Act, and is not implicated in the statutes creating the Compensation 
Program, it is instructive as to the limitations of the Commission’s judicial authority.  
Correctly recognizing that it did not have authority to rule on claimant’s 
constitutional challenge in this case, but acting in accord with its status as an 
administrative agency with a process of appeal to the Court of Appeals encompassing 
a broad spectrum of subject matters, see id. § 97-86 (providing for appeals to the Court 
of Appeals from final awards of the full Commission pursuant to the Workers’ 
Compensation Act); id. § 143-293 (2015) (providing for appeals to the Court of Appeals 
from decisions and orders of the full Commission pursuant to the Tort Claims Act); 
id. § 143B-426.53(f) (providing for appeals to the Court of Appeals from decisions of 
the full Commission pursuant to the Compensation Program), the Industrial 
Commission certified the question to the Court of Appeals for judicial determination. 
 
In addition, the North Carolina Constitution states that “[t]he Court of Appeals 
shall have such appellate jurisdiction as the General Assembly may prescribe.”  N.C. 
Const. art. IV, § 12(2).  The General Assembly has conferred upon the Court of 
Appeals “jurisdiction to review upon appeal decisions . . . of administrative agencies, 
upon matters of law or legal inference.”  N.C.G.S. § 7A-26 (2015).  There is no doubt 
that a question as to the constitutionality of an act of the General Assembly is a 
“matter[ ] of law or legal inference.”  This Court also has recognized that “[i]n ‘double 
appeal’ states, including North Carolina . . . , cases involving a substantial 
IN RE REDMOND 
 
Opinion of the Court 
 
 
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constitutional question are appealable in the first instance to the intermediate 
appellate court.”  State v. Colson, 274 N.C. 295, 302-03, 163 S.E.2d 376, 381 (1968), 
cert. denied, 393 U.S. 1087 (1969).  The General Assembly has provided specifically 
that “appeal as of right lies directly to the Court of Appeals” from “any final order or 
decision of . . . the North Carolina Industrial Commission.”  N.C.G.S. § 7A-29 (2015).  
The appeal in this case arises from a “decision and order” of the full Commission 
denying claimant’s claim based on the application of subsection 143B-426.50(1)—the 
statutory provision that is the subject of claimant’s constitutional question. 
In its opinion below, the Court of Appeals relied on N.C.G.S. § 1-267.1(a1) to 
conclude that its appellate jurisdiction has been limited by the General Assembly in 
the context of this case.  See In re Hughes, ___ N.C. App. at ___, 785 S.E.2d at 116.  
Subsection 1-267.1(a1) provides in part that “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.”  N.C.G.S. § 1-267.1(a1) (2015).  According to North Carolina Rule of 
Civil Procedure 42(b)(4), when “a claimant raises such a challenge in the claimant’s 
complaint or amended complaint in any court in this State . . . . 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.”  Id. § 1A-1, Rule 42(b)(4) (2015). 
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Opinion of the Court 
 
 
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“Where the language of a statute is clear and unambiguous, there is no room 
for judicial construction[,] and the courts must give [the statute] its plain and definite 
meaning, and are without power to interpolate, or superimpose, provisions and 
limitations not contained therein.”  Liberty Mut. Ins. Co. v. Pennington, 356 N.C. 571, 
575, 573 S.E.2d 118, 121 (2002) (alterations in original) (quoting State v. Camp, 286 
N.C. 148, 152, 209 S.E.2d 754, 756 (1974)).  By the plain language of subsection 1-
267.1(a1), the General Assembly confined the scope of the statute to the requirements 
of Rule 42(b)(4).  In this case claimant filed a claim with the Commission pursuant to 
section 143B-426.52 of the Compensation Program, and not a “complaint or amended 
complaint in any court in this State.”   See N.C.G.S. § 1A-1, Rule 42(b)(4).  Moreover, 
the Commission “is not a court” as contemplated in Rule 42(b)(4), but “primarily is an 
administrative agency of the state.”  Hogan, 315 N.C. at 137, 337 S.E.2d at 483.  
Consequently, subsection 1-267.1(a1), read in conjunction with Rule 42(b)(4), does not 
require that claimant’s constitutional challenge be heard by a three-judge panel of 
the Superior Court of Wake County.  Therefore, subsection 1-267.1(a1) does not limit 
the appellate jurisdiction of the Court of Appeals with respect to this matter. 
That the Commission is not a court, but an administrative agency of the State 
with statutorily limited judicial authority, also makes distinguishable our prior 
reasoning in cases like City of Durham v. Manson, 285 N.C. 741, 743, 208 S.E.2d 662, 
664 (1974) (“[I]n conformity with the well established rule of appellate courts, we will 
not pass upon a constitutional question unless it affirmatively appears that such 
IN RE REDMOND 
 
Opinion of the Court 
 
 
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question was raised and passed upon in the court below.” (italics omitted) (quoting 
State v. Jones, 242 N.C. 563, 564, 89 S.E.2d 129, 130 (1955))), and State v. Cumber, 
280 N.C. 127, 132, 185 S.E.2d 141, 144 (1971) (“Having failed to show involvement of 
a substantial constitutional question which was raised and passed upon in the trial 
court and properly brought forward for consideration by the Court of Appeals, no legal 
basis exists for this appeal to the Supreme Court, and it must therefore be 
dismissed.”).  As we have established already, the Commission has no authority to 
decide constitutional questions, making the rule announced in these cases 
inapplicable to whether the Court of Appeals may consider the constitutional 
question raised in this case. 
Inasmuch as our prior decision in State ex rel. Commissioner of Insurance v. 
North Carolina Rate Bureau applied cases like Manson, Cumber, and Jones in the 
context of an appeal from an administrative agency, see 300 N.C. 381, 428, 269 S.E.2d 
547, 577 (1980), that case is distinguishable from the present case because it involved 
an appeal from the Commissioner of Insurance’s denial of a rate increase that was 
subject to judicial review pursuant to the Administrative Procedure Act (APA), see id. 
at 394-96, 269 S.E.2d at 559.  Although petitions for judicial review of final agency 
decisions governed by the APA ordinarily are “filed in the superior court of the county 
where the person aggrieved by the administrative decision resides,” N.C.G.S. § 150B-
45(a) (2015), in Rate Bureau, appeal was taken directly from the Commissioner of 
Insurance to the Court of Appeals.  300 N.C. at 392, 269 S.E.2d at 557.  In that case, 
IN RE REDMOND 
 
Opinion of the Court 
 
 
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no constitutional challenge regarding rate-making was considered by the Court of 
Appeals.  See generally State ex rel. Comm’r of Ins. v. N.C. Rate Bureau, 41 N.C. App. 
310, 255 S.E.2d 557 (1979).  Moreover, in Rate Bureau, this Court reasoned: 
[T]he 
Commissioner's 
original 
order 
denying 
the 
Reinsurance Facility rate increase stated only that such 
rates are “unfairly discriminatory” presumably in the 
statutory sense.  He never held that any of the statutes or 
actions were unconstitutional.  In his brief, however, he 
does 
make 
vague 
assertions 
that 
it 
would 
be 
“constitutionally suspect” to interpret the statutes contrary 
to his findings and conclusions.  He states, “The governing 
statutes should be construed so as to avoid serious doubts 
as to constitutionality.” 
 
300 N.C. at 429, 269 S.E.2d at 577. 
Citing a holding by the Supreme Court of Michigan in Shavers v. Attorney 
General Kelley, 402 Mich. 554, 267 N.W.2d 72, cert. denied, 442 U.S. 934, 99 S. Ct. 
2869 (1978), the Commissioner argued that “certain ratemaking mechanisms were 
constitutionally deficient in failing to provide due process.”  Rate Bureau, 300 N.C. at 
429, 269 S.E.2d at 578.  This Court noted: 
However, the Michigan court unquestionably based its 
holding on constitutional due process considerations.  
Indeed, the Michigan action was a declaratory judgment 
action 
specifically 
brought 
to 
determine 
the 
constitutionality of the Michigan No-Fault Insurance Act.  
The constitutional question was the basis for the action 
from trial court to final appellate adjudication.  This is 
completely unlike the case before us where the record 
discloses no constitutional question presented or passed in 
the Commissioner’s original order. 
 
 Id. at 429, 269 S.E.2d at 578. 
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Opinion of the Court 
 
 
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We believe that the decision regarding the issue of a constitutional challenge 
before this Court in Rate Bureau was incorrect.  When an appeal lies directly to the 
Appellate Division from an administrative tribunal, in the absence of any statutory 
provision to the contrary, see, e.g., N.C.G.S. § 150B-45(a), a constitutional challenge 
may be raised for the first time in the Appellate Division as it is the first destination 
for the dispute in the General Court of Justice.  As in this case, a claim made pursuant 
to the Compensation Program is appealed from a final decision of the Commission 
directly to the Court of Appeals without judicial review by a trial court.  See id. 
§ 143B-426.53(f).  
Here, the Commission necessarily deemed claimant ineligible for the 
Compensation Program pursuant to subsection 143B-426.50(1), as required by the 
General Assembly.  Claimant ultimately appealed the Commission’s decision to the 
Court of Appeals on the basis that denial of her claim pursuant to 143B-426.50(1) 
was unconstitutional—a question of law outside the scope of the Commission’s limited 
judicial authority but within the purview of the General Court of Justice.  
Furthermore, subsection 1-267.1(a1) does not modify the Court of Appeals’ 
jurisdiction to review decisions of the Commission on “matters of law or legal 
inference” pursuant to section 7A-26, final decisions of the Commission pursuant to 
section 7A-29, or final decisions of the full Commission regarding eligibility for the 
Compensation Program pursuant to subsection 143B-426.53(f).  Consequently, we 
hold that claimant’s appeal based on a constitutional challenge was properly before 
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Opinion of the Court 
 
 
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the Court of Appeals and that the Court of Appeals has appellate jurisdiction over 
claimant’s appeal.  Accordingly, we reverse the decision of the Court of Appeals and 
remand this case to that court to consider the merits of claimant’s constitutional 
challenge to subsection 143B-426.50(1). 
REVERSED AND REMANDED.