Court Opinion

ID: 9562291
Source: CourtListenerOpinion
Date Created: 2023-08-21 18:25:43.437797+00
Date Added: 2024-06-11T09:17:17.144903
License: Public Domain

Judge Greene
dissenting.
I disagree that an easement was not required before issuance of a permit to Atlantic Diving and that petitioner is not entitled to a contested case hearing.
This Court has previously determined that a proposed project which “includes a 148-slip marina covering 5.9 acres of public trust waters, requiring the hydraulic excavation of 9 acres of public trust lands” is “an undertaking of [such] magnitude” so as to require an easement from the Department of Administration before receiving a CAMA permit. Walker, 111 N.C. App. at 855, 433 S.E.2d at 769. In this case, Atlantic Diving, in its CAMA permit application, proposed to construct dolphins and piers and repair a bulkhead for the “extended berthing, repairing, [and] unloading” and mooring of two vessels up to 700 feet long and 100 feet wide on the west side of the Cape Fear River downstream of the Cape Fear Memorial Bridge. The proposed project also called for extensive dredging of a boat basin, 1200 feet in length and 200 to 250 feet in width. The proposed development in this case, like the proposed development at issue in Walker, was an undertaking of such magnitude, it required an easement from the Department of Administration pursuant to N.C. Gen. Stat. § 146-12 before a CAMA permit could be granted. Because an easement was not granted, the case should be remanded to the Department of Administration. If the Department of Administration does not grant Atlantic Diving an easement, the proposed project cannot go forward. If, however, the Department of Administration grants Atlantic Diving an easement, petitioner is entitled to a contested case hearing with regard to the issuance of a CAMA permit.
In order to receive a contested case hearing on a decision to grant a development permit, a person must show that he “[h]as alleged that the decision is contrary to a statute or rule”; that he “[i]s directly affected by the decision”; and that he “[h]as a substantial likelihood of prevailing in a contested case.” N.C.G.S. § 113A-121.1(b) (1994). Because petitioner has met the second requirement, which is not in dispute, the question is whether petitioner has met its burden with *468regard to the first and third requirements. In this case, the Commission’s form to request a contested case hearing directed petitioner to “[s]ummarize the evidence you will present at a hearing in support of your appeal.” In the letter accompanying its contested case hearing request, petitioner alleged the following:
The proposed development will not only have a significant adverse effect on the value and enjoyment of [petitioner’s] property but will prohibit his current use of the property for docking tugs and barges because it will be unsafe for these vessels to navigate into his property and docks due to the risk of collision with the now permitted “permanently” moored ships of Atlantic Diving
1. . . . properly diagram[m]ed it will become evident that risk of collision with Applicant’s ships is ever present for any vessel trying to dock at Petitioner’s site and as a result Petitioner’s property becomes unusable. Our evidence at the hearing will consist of photographs and diagrams which will show the project as permitted and constructed and will accurately show its affects on the adjoining riparian users. These visual aids will be accompanied by the testimony of licensed vessel operators, captains and other experts as to the dangers that this project poses and its significant adverse effect on the value and use of Petitioner’s property. . . .
2. . . . Our evidence will show that the project as permitted is unsafe and poses a hazard to the port, the bridge, our property and vessels, the property of those across the river. This evidence will consist of expert testimony, diagrams, photographs, weather information and other pertinent material. . . . Evidence from docking pilots as to the safety problems created by this project will be produced along with appropriate expert testimony. . . .
4. Affect on Adjoining Riparian Property. Our evidence will show that the project as permitted will effectively deny the Petitioner the use of his property. . . .
Petitioner also refuted in this letter the conclusions of the Corps of Engineers, the United States Coast Guard, and Gary Greene, consulting engineer for Atlantic Diving, concerning the safety and effects of the proposed project, and summarized the evidence to refute their conclusions.
*469Pursuant to N.C. Gen. Stat. § 113A-120(a)(2), the Department of Environment, Health, and Natural Resources and Coastal Resources Commission “shall deny an application for a permit upon finding . . . [i]n the case of estuarine waters, that a permit for the development would be denied pursuant to G.S. 113~229(e).” N.C.G.S. § 113A-120(a)(2) (1994). Section 113-229(e) provides that the Department “may deny an application for a dredge or fill permit upon finding”:
(1) that there will be significant adverse effect of the proposed dredging and filling on the use of the water by the public; or (2) that there will be significant adverse effect on the value and enjoyment of the property of any riparian owners; or (3) that there will be significant adverse effect on public health, safety, and welfare ....
N.C.G.S. § 113-229(e) (1994). Furthermore, the Department “shall deny an application for a permit” if the proposed development would interfere with public rights of access to navigable waters. N.C.G.S. § 113A-120(a)(5); N.C.G.S. § 113A-113(b)(5). Regulations promulgated pursuant to CAMA provide that “[development shall not impede navigation or create undue interference with access to, or use of, public trust areas or estuarine waters.” N.C. Admin. Code tit. 15A, r. 7H.0208(a)(2)(H) (April 1993).
Although petitioner did not allege in its request for a contested case hearing the specific numbers of statutes, rules or regulations which it contends were violated in granting Atlantic Diving a CAMA permit, petitioner’s allegations were specific enough to identify violations of the statutes and rules set out above and to satisfy the requirement of alleging “that the decision is contrary to a statute or rule.” N.C.G.S. § 113A-121.1(b)(l) (1994); cf. Save Our Rivers v. Town of Highlands, 113 N.C. App. 716, 724, 440 S.E.2d 334, 339 (liberally construing requirement under G.S. § 150B-46 that third parties seeking judicial review of final agency decision specifically set out exceptions to agency decision in party’s petition for judicial review), disc. rev. allowed, 336 N.C. 609, 447 S.E.2d 402 (1994).
Finally, petitioner, in order to be entitled to a contested case hearing, has the burden of showing that it has “a substantial likelihood of prevailing in a contested case.” N.C.G.S. § 113A-121.1(b)(3); Pamlico Tar, 103 N.C. App. at 27, 404 S.E.2d at 169. This burden is analogous to the process used in summary judgment proceedings because the Commission, in evaluating a petition for a contested case hearing, has *470before it evidence or summaries of evidence from both sides and must determine whether or not a hearing is necessary. It therefore is appropriate that the Commission, in determining whether petitioner shows a substantial likelihood of prevailing in a contested case, look at the evidence in the light most favorable to petitioner and draw all inferences of fact in favor of petitioner. Cf. Roumillat v. Simplistic Enters., Inc., 331 N.C. 57, 63, 414 S.E.2d 339, 342 (1992) (in summary judgment proceeding, all inferences of fact must be drawn against movant and in favor of nonmovant). Viewed in the light most favorable to petitioner, the evidence reveals a substantial likelihood that petitioner would prevail in a contested case hearing. Therefore, there is not substantial evidence in the “whole record” to support the Commission’s conclusion that “petitioner has failed to allege violations of state statutes or rules or to demonstrate a substantial likelihood of prevailing in a contested case.” For these reasons, I would reverse the trial court and order resubmission to the Department of Administration and, in the event an easement and permit are granted to Atlantic Diving, a remand to the Commission for a contested case hearing, as requested by petitioner.
I have reviewed Atlantic Diving’s cross-appeal and determined the trial court did have subject matter jurisdiction.