## Facts

- On August 14, 1991, Minnie A. Carrier rode home from work as a passenger in a car driven by Wanda Tuttle.
- It was raining and the roadway was wet.
- As Tuttle approached an intersection, she slowed and began turning right. Her vehicle was stopped or nearly stopped when Clyde Darrick Starnes came around a slight curve and struck Tuttle’s car because he could not stop in time.
- Carrier claimed the collision injured her back, neck, and especially her right arm and hand, and she sued Starnes for personal injuries.
- Starnes’s liability insurer (Nationwide) hired a private investigator, Kenneth Holmes, to surveil Carrier after the accident and make a videotape of her activities.
- At trial, Starnes offered the videotape into evidence, and Holmes testified about recording the video and watching Carrier perform various activities while focusing on body areas she claimed were injured.
- Before trial, Starnes (and Carrier’s underinsured motorist carrier participating under North Carolina law) sought to prevent any disclosure that Holmes was hired by an insurance company.
- The trial judge granted the request only in part, allowing Carrier to ask Holmes who hired him and directing counsel to seek the court’s permission before making broader inquiries about insurance.
- During cross-examination, Carrier questioned Holmes about his financial arrangement and relationship with the insurance company to show potential bias.
- Starnes appealed, arguing the cross-examination improperly injected liability insurance into the case in violation of North Carolina Rule of Evidence 411.

## Issues

1. Whether, under N.C. R. Evid. 411, the trial court erred by allowing Carrier to cross-examine the defense surveillance investigator about being hired and paid by Starnes’s liability insurer to show witness bias.

## Decision

- The North Carolina Court of Appeals affirmed.
- The court held it was not error to permit the cross-examination because it was aimed at witness bias rather than proving negligence through the existence of liability insurance.
- The court found the trial judge properly controlled the scope of questioning and concluded there was no reversible evidentiary error (“No error”).

## Legal Principles

- N.C. R. Evid. 411 generally bars evidence that a person was or was not insured against liability when offered to prove negligence or wrongful conduct.
- Rule 411 permits insurance-related evidence when offered for another purpose, including showing a witness’s bias or prejudice.
- A witness’s financial relationship with, or retention by, an insurance carrier may be explored on cross-examination when it tends to show bias affecting credibility.
- Trial courts may limit how insurance-related facts are presented so the jury hears only what is needed for the allowed purpose; appellate review focuses on whether the challenged ruling was error in context.

## Conclusion

Because Carrier’s questioning of the investigator focused on his financial relationship with the insurer to test credibility for bias—an allowed use under Rule 411—the Court of Appeals held the trial court committed no error in permitting the limited cross-examination and affirmed the judgment.


Carrier v. Starnes, 463 S.E.2d 393 (1995)