§ 108A-70.14. Civil investigative demand. - North Carolina Statutes

§ 108A‑70.14. Civil investigative demand.

(a)        If the Attorney General has reasonable cause to believe thata person has information or is in possession, custody, or control of anydocument or other tangible object relevant to an investigation or that wouldlead to the discovery of relevant information in an investigation of aviolation of G.S. 108A‑70.12, the Attorney General may serve upon theperson, before bringing an action under G.S. 108A‑70.12 or other falseclaims law, a civil investigative demand to appear and be examined under oath,to answer written interrogatories under oath, and to produce any documents orobjects for their inspection and copying.

(b)        The civil investigative demand shall:

(1)        Be served upon the person in the manner required for serviceof process in civil actions and may be served by the Attorney General orinvestigator assigned to the North Carolina Department of Justice;

(2)        Describe the nature of the conduct constituting theviolation under investigation;

(3)        Describe the class or classes of any documents or objects tobe produced with sufficient definiteness to permit them to be fairlyidentified;

(4)        Contain a copy of any written interrogatories to beanswered;

(5)        Prescribe a reasonable date and time at which the personshall appear to testify, answer any written interrogatories, or produce anydocument or object;

(6)        Advise the person that objections to or reasons for notcomplying with the demand may be filed with the Attorney General on or beforethat date and time;

(7)        Specify a place for the taking of testimony;

(8)        Designate a person to whom answers to writteninterrogatories shall be submitted and to whom any document or object shall beproduced; and

(9)        Contain a copy of subsections (b) and (c) of this section.

(c)        The date within which to answer any written interrogatoriesand within which any document or object must be produced shall be more than 30days after the civil investigative demand has been served upon the person. Thedate within which a person must appear to testify shall be more than 15 daysafter the demand has been served upon a person who resides out‑of‑stateor more than 10 days after the demand has been served upon a person who residesin‑state.

(d)        The person before whom the oral examination is to be takenshall put the person to be examined on oath and shall personally, or by someoneacting under the person's direction and in the person's presence, record thetestimony of the person to be examined. The Attorney General may exclude fromthe place where the examination is held all persons except the person givingthe testimony, the attorney or other representative of the person giving thetestimony, the Attorney General conducting the examination, the investigatorassisting the Attorney General, the stenographer, and any other person agreedupon by the Attorney General and the person giving the testimony. When thetestimony is transcribed, the person shall have a reasonable opportunity toexamine and read the transcript, unless an examination and reading are waivedby the person. Any changes in form or substance which the person desires tomake shall be entered and identified upon the transcript by the person. Thetranscript shall then be signed by the person, unless the person in writingwaives the signing, is ill, cannot be found, or refuses to sign.

(e)        Each interrogatory in a civil investigative demand servedunder this section shall be answered separately and fully in writing under oathand shall be submitted under sworn certificate by the person to whom the demandis directed, or in the case of a person other than a natural person, a personhaving knowledge of the facts and circumstances relating to the production andauthorized to act on behalf of the person. If a person objects to anyinterrogatory, the reasons for the objection shall be stated in the certificateinstead of an answer. The certificate shall state that all information requiredby the demand and in the possession, custody, control, or knowledge of theperson to whom the demand is directed has been submitted. To the extent thatany information is not furnished, the information shall be identified andreasons set forth with particularity regarding the reasons why the informationwas not furnished.

(f)         The production of documents and objects in response to acivil investigative demand served under this section shall be made under asworn certificate by the person to whom the demand is directed, or in the caseof a person other than a natural person, a person having knowledge of the factsand circumstances relating to the production and authorized to act on behalf ofthe person. The certificate shall state that all of the documentary materialrequired by the demand and in the possession, custody, or control of the personto whom the demand is directed has been produced and made available. Uponwritten agreement between the person served with the civil investigative demandand the Attorney General, the person may substitute copies for originals of allor any part of the documents requested.

(g)        No person shall be excused from testifying, answeringinterrogatories, or producing documents or objects in response to a civilinvestigative demand on the ground that the testimony, answers, documents, orobjects required of the person may tend to incriminate the person. However, notestimony, answers, documents, or objects compelled pursuant to G.S. 108A‑70.14may be used against the person in a criminal action, except a prosecution forperjury or for contempt arising from a failure to comply with an order of thecourt.

(h)        Any person appearing for oral testimony under a civilinvestigative demand issued pursuant to this section shall be entitled to thesame fees and allowances paid to witnesses in the General Court of Justice ofthe State of North Carolina.

(i)         If a person objects to or otherwise fails to comply with acivil investigative demand served upon the person under subsection (a) of thissection, the Attorney General may file an action in superior court for an orderto enforce the demand. Venue for the action to enforce the demand shall be ineither Wake County or the county in which the person resides. Notice of ahearing on the action to enforce the demand and a copy of the action shall beserved upon the person in the same manner as prescribed in the Rules for CivilProcedure. If the court finds that the demand is proper, that there isreasonable cause to believe that there may have been a violation of G.S. 108A‑70.12,and that the information sought or document or object demanded is relevant tothe violation, the court shall order the person to comply with the demand,subject to modifications the court may prescribe.

(j)         If the person fails to comply with an order enteredpursuant to subsection (i) of this section, the court may:

(1)        Adjudge the person to be in contempt of court;

(2)        Grant injunctive relief against the person to whom thedemand is issued to restrain the conduct which is the subject of theinvestigation; or

(3)        Grant any other relief as the court may deem proper.

(k)        Any transcript of oral testimony, answers to writteninterrogatories, and documents and objects produced pursuant to this sectionmay be used in connection with any civil action brought under G.S. 108A‑70.12.

(l)         The North Carolina Rules of Civil Procedure shall apply to thissection to the extent that the rules are not inconsistent with the provisionsof this section. (1997‑338, s.1.)