Arnold v. State

339 So. 2d 616, 1976 Ala. Crim. App. LEXIS 1598
Court of Criminal Appeals of Alabama·Decided October 26, 1976·No. 4 Div. 404·Published·Cited by 4 cases

Opinion

TYSON, Judge.

The appellant was indicted for the embezzlement of $2,684.62, the personal property of R. D. Easters, by virtue of his employment by Easters. The jury found the appellant guilty as charged and the trial court then entered judgment, setting sentence at three years imprisonment.

R. D. (Doug) Easters testified that he was the owner and operator of Elba Paint and Body Shop during 1973 and 1974 in [617]*617Elba, Alabama. He stated that he entered into a contract of employment with Paul Craig Arnold, the appellant, which contract commenced on January 2, 1973, and was to run for one year. Under the terms of this contract, the appellant was to be paid a salary of $850.00 per month, and if there were profits after a three-month interval, that there would at that time under the contract, the parties were to divide the profits after paying Mr. Easters’ $500.00 as monthly rental on the property. The contract also provided that the appellant was to receive one-half the net profits from the sale of any parts over and above the terms as stated. Mr. Easters testified that during 1973 the company showed gross receipts of $69,231.00; a cost of operations of $21,-964.00; depreciation of $3,713.00; repairs of $35.00; salaries and wages, excluding anything payable to himself, of $39,251.00; insurance, $718.00; utilities, $968.00; advertising, $720.00; service truck expenses, $981.00; interest $5,919.00; and miscellaneous expenses of $2,693.00; supplies, $361.00; laundry, $225.00; showing a net loss for the year of $9,371.00. Mr. Easters also testified that at no time during the year 1973 did the company make sufficient monies to enable him to be paid his monthly rental as set out in the contract. Mr. Easters testified that commencing with January, 1974, the parties did not enter into a new agreement, but that he simply continued to pay Mr. Arnold his monthly salary of $850.00, and that all payrolls were under Mr. Arnold’s supervision, and that Mr. Arnold prepared the checks for the company and made most of the deposits for the company. Mr. Easters then identified a number of records of the company which indicated from the period February, 1974, until the first part of July, 1974, that a number of items were shown wherein on work orders the appellant would indicate that the proceeds had been received on a company work order, and the statement would be marked, “paid,” but then an examination of the company’s bank deposits for the corresponding period failed to reveal the deposit for the item marked “paid” on the work sheets. Also during this same period there were several instances in which the checks were issued on the company, payable to the paint and body shop, such as payments to the power company, in one instance to a veterinarian, in other instances to grocery stores, which indicated that these were checks for personal items of expense of the appellant and were not for the benefit of the company. Mr. Easters further testified that he was a candidate for public office during part of this time, and that during the spring of 1974 had turned over all the company’s books and records to Mr. Arnold for handling. He stated that in June he began to examine the company records and after noticing the discrepancies with reference to work orders and which failed to show deposits and checks issued for payment of bills for the benefit of Mr. Arnold which appeared to be personal expenses for Mr. Arnold, he notified his attorney, Mr. Kenneth Fuller, and his accountant and had them examine these same records. Mr. Arnold was called in and had a conversation in the office with Mr. Fuller, the attorney, and Mr. Easters, wherein these matters were called to his attention. At this time Mr. Fuller indicated to Mr. Arnold that there were some $4500 or $4600 discrepancy, and that Mr. Easters was owed this much by Mr. Arnold, the appellant.

Mr. Kenneth T. Fuller, an attorney of Enterprise, Alabama, testified that he had been asked by Mr. Doug Easters to examine his company’s records and that he did so. He further stated that at Mr. Easters’ request he made arrangements to meet with the appellant, Mr. Arnold, and Mr. Easters early one Monday morning in July, 1974, at the company office.

He stated that Mr. Arnold came into the office and that he talked with him alone and pointed out to him that through examination of the work orders for which were marked in his handwriting, “paid,” and which showed no bank deposit, and the several checks which had been written by him on company funds for his personal expenses, that it appeared that some $4400.00 to $4500.00 was owed to Mr. Easters by Mr. Arnold. He stated that Mr. Arnold told [618]*618him he wanted to talk with Mr. Easters about it and wanted to see if it was something that could be worked out. Mr. Fuller stated that he advised Mr. Arnold that his services were terminated and that this was the end of his employment for the Elba Paint and Body Shop. He stated that Mr. Arnold then asked if he could speak with Mr. Easters, and he told him that he could. He stated in a few minutes that the two men came into the room together and that he told Mr. Easters that it would probably be all right for Mr. Arnold to use the pickup truck to go to his home. He stated that Mr. Arnold then left and that subsequently he had some conversations with members of Mr. Arnold’s family and possibly his attorney.

The appellant, Paul Craig Arnold, testified that during 1973 and 1974 he was employed as manager of the Elba Paint and Body Shop in Elba, Alabama. He stated that Mr. Easters was to pay him a monthly salary of $850.00 per month for the first three months, and thereafter they would share fifty per cent of the net profits. He stated that he never received any funds as net profits on the parts, but continued during the year 1973 to receive a salary of $850.00 per month. He stated that at Christmas time he got a bonus. He stated that in 1974 he was handling the company’s records and that on several instances he wrote checks to different companies wherein he would go and pick up various items for the company, such as at a Junior Food Store he would have to pay cash in order to obtain the items, such as cleaning materials and towels for the body shop. He also testified that on several instances he wrote checks which were cashed, and that he paid cash on receipt of certain items which had been ordered in behalf of the company, such as supplies of different types. He testified that he was in charge of the payroll and the checkbook, and he did recall having a conversation with Mr. Easters and Mr. Fuller in early July on a Monday morning at the company office. He stated that he told Mr. Fuller he did not believe that he owed the company $4500.00 or $4600.00, and that he wanted to see if he could work something out, and he asked permission to go talk with his family, and he said that Mr. Easters and Mr. Fuller told him he could take the pickup truck and go talk with his family. He testified that he was indebted to the Elba Exchange Bank for $2000.00 for monies which he had previously borrowed.

On cross-examination the appellant admitted writing two checks to the Alabama Power Company that were personal and also two to the IGA Grocery Store, and in one instance to a veterinarian. However, he stated that it was his understanding that he would be able to be repaid for monies due him for his salary and that these were in the nature of an advance.

The appellant presented the testimony of his wife, Mrs. Paul Arnold, and she endeavored to testify that during early 1974 on a Saturday afternoon, she was present at the company office with Mr. Arnold, her husband, Mr. Easters, and another employee by the name of Charles Cooper.

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Arnold v. State, 339 So. 2d 616, 1976 Ala. Crim. App. LEXIS 1598 (Ala. Ct. App. 1976).

339 So. 2d 616 (Arnold v. State) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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