259 N.C. App. 8
N.C. Ct. App.2018Background
- On Aug. 23, 2011 Christopher Chambers, an uninsured emergency patient, signed Moses Cone’s Patient Consent form which obligated him to pay the hospital’s “regular rates and terms.”
- Moses Cone billed Chambers roughly $14,578 and sued in district court when unpaid; Chambers filed a putative class action in superior court alleging uninsured ER patients were billed chargemaster (gross) rates and seeking, among other theories, a declaratory judgment that the consent form limited recovery to the "reasonable value" of services.
- Chambers’ original complaint alleged multiple claims; his April 1, 2016 amended complaint narrowed to a single claim for declaratory relief about the meaning of "regular rates and terms."
- After the amendment, Moses Cone dismissed with prejudice its counterclaims and the district-court claim against Chambers, effectively writing off Chambers’ bill.
- The trial court dismissed Chambers’ amended class complaint as moot on March 16, 2017; Chambers appealed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether dismissal of Moses Cone’s counterclaims and write-off of Chambers’ bill moots the class action | Chambers argued exceptions to mootness apply and the class action should continue despite dismissal of his individual claim | Moses Cone argued dismissal of its counterclaims removed Chambers’ personal stake, rendering the proposed class action moot because the sole representative no longer has standing | The court held the action was dismissible: Chambers’ individual claim was extinguished and he no longer had a genuine personal interest as sole class representative, so dismissal was affirmed |
| Whether mootness exceptions (termination-of-representative, voluntary cessation, public-interest) preserve the class claim | Chambers relied on (1) termination-of-representative exception, (2) voluntary cessation, (3) public-interest exception | Moses Cone asserted none of those exceptions applied given the facts and that Chambers lacked individual standing post-dismissal | Court rejected the exceptions: the termination-of-representative exception did not apply because Chambers’ alleged harm was not temporary; and because the sole representative lacked a personal stake, the class could not proceed under Rule 23 |
Key Cases Cited
- Faulkenbury v. Teachers' & State Emps' Ret. Sys. of N.C., 345 N.C. 683, 483 S.E.2d 422 (1997) (Rule 23 requires named representatives to have a genuine personal interest and adequately represent the class)
- Crow v. Citicorp Acceptance Co., 319 N.C. 274, 354 S.E.2d 459 (1987) (party bringing class action bears burden to show Rule 23 prerequisites)
- Meadows v. Iredell Cty., 187 N.C. App. 785, 653 S.E.2d 925 (2007) (one who is not a member of the class may not represent it; standing requirements analogous to Rule 23)
- Simeon v. Hardin, 339 N.C. 358, 451 S.E.2d 858 (1994) (narrow class of cases where termination of representative’s claim does not moot unnamed members’ claims)
- Thomas v. N.C. Dep't of Human Res., 124 N.C. App. 698, 478 S.E.2d 816 (1996) (mootness doctrine and exceptions such as voluntary cessation and public-interest considerations)
- City of Mesquite v. Aladdin's Castle, Inc., 455 U.S. 283 (1982) (defendant’s voluntary cessation does not necessarily moot a case)
- N.C. Baptist Hosps. v. Harris, 319 N.C. 347, 354 S.E.2d 471 (1987) (doctrine of necessaries and spousal liability for medical expenses)
