In Re Grand Jury Empanelled March 8, 1983

722 F.2d 294, 14 Fed. R. Serv. 1224, 1983 U.S. App. LEXIS 15045
CourtCourt of Appeals for the Sixth Circuit
DecidedNovember 23, 1983
Docket83-5508
StatusPublished
Cited by7 cases

This text of 722 F.2d 294 (In Re Grand Jury Empanelled March 8, 1983) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Grand Jury Empanelled March 8, 1983, 722 F.2d 294, 14 Fed. R. Serv. 1224, 1983 U.S. App. LEXIS 15045 (6th Cir. 1983).

Opinion

LIVELY, Chief-Judge.

The appellant Jacob J. Butcher was served with a subpoena duces tecum to appear before a federal grand jury in the Eastern District of Tennessee. The subpoena ordered Butcher to produce specified financial and other business records of eight named companies. Butcher moved to quash the subpoena on the ground that the act of producing the records would violate his Fifth Amendment privilege against compelled self-incrimination. The government made it clear at a hearing that it sought only corporate records. It was also disclosed at the hearing that the government *295 had not located incorporation records of three of the eight companies.

Butcher conceded at the hearing that the contents of corporate records are not privileged under the Fifth Amendment. However, he contended that he was protected by the Fifth Amendment from the act of producing the records, arguing that this act in itself would be testimonial and incriminating. The district court denied the motion, holding that since the documents sought were corporate records held by Butcher in a representative capacity they were not protected by the privilege. The district court also denied Butcher’s request to be permitted to submit an affidavit and memorandum in camera setting forth the reasons why the act of production, in itself, would be testimonial and incriminating.

Butcher then appeared before the grand jury, but failed to produce the subpoenaed records, asserting Fifth Amendment grounds. He was held in contempt and remanded to the custody of the Attorney General until he complies with the district court’s order. Enforcement of the order of confinement was stayed by the district court to give Butcher an opportunity to appeal its decision.

On appeal Butcher maintains that the district court erred in denying the motion to quash and in refusing to consider in camera his proffered affidavit and memorandum. He relies principally upon Fisher v. United States, 425 U.S. 391, 96 S.Ct. 1569, 48 L.Ed.2d 39 (1976), and United States v. Schlansky, 709 F.2d 1079 (6th Cir.1983), in support of both claims of error. There is no dispute that Fisher established the proposition that the very act of producing documents may be testimonial and incriminating, and if production is compelled, may be entitled to Fifth Amendment protection. This is true regardless of whether the contents of the documents are incriminating. This court discussed and applied Fisher in Schlansky, and Butcher relies on the following language from our opinion:

The central issue is no longer the nature of the materials whose production is compelled. Instead, the question is whether their production involves testimonial communication on the part of the person to whom the summons or subpoena is directed.

709 F.2d at 1082. Butcher argues from this quotation that the Fifth Amendment privilege applies to the act of producing corporate records as well as the act of producing personal records. On the basis of language in Fisher and Schlansky he also maintains that he was entitled to establish that the facts and circumstances of this case would make the act of production both testimonial and incriminating. Since an open showing of these facts and circumstances would nullify the privilege, he contends that the district court erred in refusing his in camera submissions.

We believe the appellant misreads Fisher and Schlansky. Both cases involved documents which were the property of the person under investigation. In Fisher the records had been prepared by an accountant and delivered to the taxpayer. The taxpayer, after he knew he was the subject of an income tax investigation, delivered the papers to an attorney who was to represent him in connection with any tax disputes. An IRS summons was served on the attorney who claimed a Fifth Amendment privilege against producing the records in compliance with the summons. The Supreme Court held that the attorney could not claim a privilege on behalf of the client, and the client would have had no Fifth Amendment privilege against the act of producing the documents if the summons had been served on him. The Court stated that it was doubtful that the act of production, even if implicitly admitting the existence and possession of the papers, would rise to the level of testimony within the protection of the Fifth Amendment. 425 U.S. at 411, 96 S.Ct. at 1581. Since the records sought were prepared by the accountant, their production by the taxpayer would not serve to authenticate them. It would “express nothing more than the taxpayer’s belief that the *296 papers are those described in the subpoena.” Id. at 413, 96 S.Ct. at 1582.

Throughout the Fisher opinion the Supreme Court emphasized that the subpoena did not seek production of the taxpayer’s “private papers.” E.g., id. at 414, 96 S.Ct. at 1582 (“for the papers demanded here are not his ‘private papers.’ ”). Prior to Fisher the Supreme Court held in a line of cases that a person who holds documents of a collective entity in a representative capacity may be compelled by subpoena or summons to produce those documents even though they may incriminate the person required to produce them. See, e.g., Beilis v. United States, 417 U.S. 85, 94 S.Ct. 2179, 40 L.Ed.2d 678 (1974) (partnership); United States v. White, 322 U.S. 694, 64 S.Ct. 1248, 88 L.Ed. 1542 (1944) (unincorporated association); Dreier v. United States, 221 U.S. 394, 31 S.Ct. 550, 55 L.Ed. 784 (1911) (corporation — subpoena directed to corporate officer); Wilson v. United States, 221 U.S. 361, 31 S.Ct. 538, 55 L.Ed. 771 (1911) (corporation — subpoena directed to corporation). Rather than retreating from these holdings in Fisher the Court reaffirmed them. 425 U.S. at 411-12, 96 S.Ct. at 1581.

In Schlansky the IRS summons was directed to the taxpayer rather than to his accountant or attorney. Again the documents sought were the personal property of the person under investigation, not those of a corporation or other collective entity. After approving the in camera inspection of the documents to determine whether the act of production would indeed be testimonial and incriminating as the taxpayer claimed, this court affirmed the district court’s denial of a motion to quash the summons. The in camera inquiry was required because there was a possibility that the act of production would supply a necessary connection between these personal documents and the taxpayer. Such a connection might be self-incriminating.

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Related

Pratt v. Kirkpatrick
718 P.2d 962 (Alaska Supreme Court, 1986)
In Re Connelly
59 B.R. 421 (N.D. Illinois, 1986)
In Re Grand Jury Subpoenas Served February 27, 1984
599 F. Supp. 1006 (E.D. Washington, 1984)
In Re Butcher
38 B.R. 785 (E.D. Tennessee, 1984)

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722 F.2d 294, 14 Fed. R. Serv. 1224, 1983 U.S. App. LEXIS 15045, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-grand-jury-empanelled-march-8-1983-ca6-1983.