Patrick Kirschner v. State

CourtCourt of Appeals of Texas
DecidedJuly 15, 1999
Docket03-97-00786-CR
StatusPublished

This text of Patrick Kirschner v. State (Patrick Kirschner v. State) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Patrick Kirschner v. State, (Tex. Ct. App. 1999).

Opinion

TEXAS COURT OF APPEALS, THIRD DISTRICT, AT AUSTIN



NO. 03-97-00786-CR
Patrick Kirschner, Appellant


v.



The State of Texas, Appellee



FROM THE DISTRICT COURT OF HAYS COUNTY, 22ND JUDICIAL DISTRICT

NO. CR-95-172, HONORABLE CHARLES E. (CHUCK) MILLER, JUDGE PRESIDING

A jury found appellant Patrick Kirschner guilty of misapplying more than $500 of funds held in trust under a construction contract for the improvement of real property. See Tex. Prop. Code Ann. §§ 162.031(a), .032(b) (West 1995). The jury assessed punishment at imprisonment for ten years and a $10,000 fine, but imposition of the prison term was suspended and Kirschner was placed on community supervision. Kirschner brings forward five points of error contending that the evidence is legally insufficient to sustain the conviction, that the statute under which he was convicted is unconstitutionally vague, and that he was denied his constitutional right to a speedy trial. We will overrule these contentions and affirm the district court's judgment.

FACTUAL BACKGROUND

On November 11, 1990, Patrick Kirschner, doing business as P&K Construction, contracted to build a house for Dale and Betty Ford in the Eden Ranch subdivision in Comal County for a total cost of $131,074. (1) Construction was to be financed by an $86,000 mortgage loan, with the balance to be paid by the Fords from their personal savings. It was agreed that the initial costs of construction would be paid by the Fords, with loan funding to be used only after their personal funds had been exhausted.

Work began in late December 1990, with the initial draw paid by the Fords on December 21. By July 26, 1991, the Fords had paid Kirschner from their personal funds $47,074 in draw requests and an additional $18,712 for change orders. Draws totaling $80,241 had been paid from loan proceeds; Kirschner would make an additional draw of $1500 from the bank on August 16. This money was deposited in P&K Construction's account at Dripping Springs National Bank (the Drippings Springs account). On July 26, Kirschner submitted to the Fords a request for $22,822, to which he attached a hand-written list of labor and material expenses. On August 16, Kirschner presented the Fords a bill for an additional $2931 for materials. After negotiations, the Fords paid Kirschner $24,986 for these additional expenses. This payment was made by three personal checks of $14,500 (dated July 26), $7000 (dated July 29), and $3486 (dated August 16). The July 26 check was deposited in the Dripping Springs account. The latter two checks were deposited in accounts maintained by P&K Construction at Victoria Bank & Trust. At this point, the Fords had paid to Kirschner a total of $172,513.

On September 13, 1991, Kirschner delivered to the Fords yet another bill for labor and materials, this totaling $10,552. The Fords, believing that Kirschner was billing them for materials for which they had already paid and for labor never performed, refused to pay Kirschner and fired him from the job. They later hired another contractor to complete the house at an additional cost of $16,606.

Meanwhile, Patsy Willbourne at Dripping Springs Title Company was attempting to arrange for the final closing of the Ford transaction. Because she had been informed that several vendors had not been paid, and knowing that the lending bank would not agree to permanent financing until all possible liens had been removed, Willbourne asked Kirschner to document all of his expenses relating to the Ford house. On September 26, Kirschner responded with what he called a final cost documentation. In this document, Kirschner listed dozens of laborers, vendors, and subcontractors to whom he claimed to have paid a total of $177,509. Included in the listing were payments to P&K Construction of $15,125 for supervision (apparently the amount Kirschner claimed he was due as general contractor) and $4964 for labor he personally performed. Kirschner also gave Willbourne a list of seventeen subcontractors and vendors he said were still owed amounts totaling $26,205. To substantiate the amounts listed as paid, Kirschner attached photocopies of hundreds of canceled checks written during the months of December 1990 through August 1991. Most of these checks bore no indication when written that they related to the Ford project (or any other). Kirschner testified that he subsequently went through his canceled checks, allocated the checks in question to the Ford project from memory, and made notations to that effect on the canceled checks.

Many of the seventeen unpaid subcontractors and vendors filed liens against the Ford property. The Fords had to pay $21,901 to discharge these liens prior to closing.



SUFFICIENCY OF THE EVIDENCE

The Alleged Offense

As they did at trial, both Kirschner and the State have devoted much of their energy on appeal to the question whether Kirschner was shown to have defrauded the Fords. This was not, however, the offense for which Kirschner was indicted and convicted. Thus, before discussing the sufficiency of the evidence, we will review the elements of the offense at issue.

Kirschner was prosecuted for violating chapter 162 of the Texas Property Code. Under this chapter, payments made under a construction contract for the improvement of specific real property, and funds borrowed for the purpose of improving specific real property and secured by a lien on the property, are trust funds. Tex. Prop. Code Ann. § 162.001(a), (b) (West 1995). A contractor who receives or controls such trust funds is a trustee of the funds. Id. § 162.002. An artisan, laborer, mechanic, contractor, subcontractor, or materialman who furnishes labor or materials for the construction of an improvement on specific real property is a beneficiary of any trust funds paid or received in connection with the improvement. Id. § 162.003 (West Supp. 1999). (2) A trustee who intentionally or knowingly, directly or indirectly retains, uses, disburses, or otherwise diverts $500 or more of trust funds without first fully paying all current or past due obligations incurred by the trustee to the beneficiaries of the trust funds is guilty of misapplying the trust funds. Id. § 162.031(a) (West 1995). A trustee who misapplies trust funds with intent to defraud the beneficiaries of the trust is guilty of a felony. Id. § 162.032(b).

The indictment alleged that Kirschner, doing business as P&K Construction:



on or about [September 27, 1991] . . . knowingly and intentionally, with intent to defraud, directly and indirectly retain[ed], use[d], disburse[d] and otherwise divert[ed] trust funds in an amount of $500.00 or more, held by Patrick Kirschner . . . as Trustee, under a Contract to Build House on specific real property, namely: [property description], without first fully paying all current and past due obligations incurred by the Trustee to all artisans, laborers, mechanics, contractors, subcontractors, and materialmen, namely: [twelve named subcontractors and materialmen], incurred in connection with construction for which the funds were received,

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Patrick Kirschner v. State, Counsel Stack Legal Research, https://law.counselstack.com/opinion/patrick-kirschner-v-state-texapp-1999.