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State v. Stockton

5/19/1998

the questioned loans, and thus contained no allegation purporting to extend defendants' negligence beyond the loan closing date of 3 January 1991. See id. Further, plaintiff proffered no allegation that defendants could have remedied damages caused by their representation of ILA in the Googe loans. See id.


According to plaintiff's complaint, the loans closed 3 January 1991, and thereafter, in March and December of 1991, defendants assisted management of ILA in preparing false and misleading responses to questions posed by the Department regarding the Googe loans. Of the 115 paragraphs set out in plaintiff's complaint, however, only the following three otherwise related to defendants' representation of ILA subsequent to 1991:


89. Throughout 1992, Petree Stockton continued to assist Peterson in running ILA contrary to the interests of ILA and its policyholders, which allowed the liabilities of ILA to increase, and which deepened its insolvency.


90. Throughout the latter part of 1992 and the early part of 1993, the Defendant Taylor and Petree Stockton assisted Peterson in attempting to negotiate sales of ILA to other insurance companies on terms which were injurious to ILA and which were designed to relieve Peterson from his personal liability and to obtain compensation for him personally.


91. Petree Stockton and the Defendant Taylor continued to represent Peterson's interests against the interests of ILA, all the while charging ILA, until at least April 2, 1993.


Indeed, the last paragraph cited was the sole allegation of defendants' representation of ILA beyond the critical date of 1 April 1993. Moreover, the allegations regarding defendants' conduct in 1992 and 1993 contained in paragraphs eighty-nine and ninety-one -- that Petree "continued" to hold the interests of Peterson above those of ILA -- are so broad as to fail to give notice of a claim. See N.C.R. Civ. P. 8(a)(1)(pleading must give "notice of the transactions, occurrences, or series of transactions or occurrences, intended to be proved"). Rather, they appear to have been included only for the purpose of attempting to bring plaintiff's claim within the "continuous representation" doctrine. Finally, paragraph ninety in effect constitutes surplusage in that plaintiff alleged no damages based upon the alleged attempted negotiations.


In short, the last negligent acts of defendants alleged in plaintiff's complaint were those regarding the Googe loans and defendants' representation of ILA in relation to inquiries by the Department regarding those loans in March and December 1991. Plaintiff's cause of action for malpractice was thus alleged to have accrued before 1 April 1993, i.e., more than three years before suit was instituted, and the doctrine of continuous representation does not save plaintiff's claim.


Plaintiff, citing the common law doctrine of nullum tempus occurrit regi ("time does not run against the king"), next maintains the statute of limitations cannot run against plaintiff State on relation of Commissioner Long. Plaintiff is mistaken.


As a general rule, the state and its political subdivisions are indeed exempt from time limitations in pursuing governmental functions "unless the pertinent statute expressly includes the State." Rowan County Bd. of Education v. U.S. Gypsum Co., 332 N.C. 1, 8-9, 418 S.E.2d 648, 653-54 (1992). However, assuming arguendo plaintiff's pursuit of the instant action against defendants on behalf of ILA constitutes a governmental function, see contra, State of N.C. ex rel. Long v. Alexander & Alexander, 711 F. Supp. 257, 262 (E.D.N.C. 1989), G.S. ยง 58- 30-130(b) expressly includes a time limitation on actions brought

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