People v. American Contractors Indemnity Co.

91 Cal. App. 4th 799, 110 Cal. Rptr. 2d 799, 2001 Cal. Daily Op. Serv. 7184, 2001 Daily Journal DAR 8797, 2001 Cal. App. LEXIS 647
CourtCalifornia Court of Appeal
DecidedAugust 16, 2001
DocketNo. B137602; No. B144246
StatusPublished
Cited by19 cases

This text of 91 Cal. App. 4th 799 (People v. American Contractors Indemnity Co.) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
People v. American Contractors Indemnity Co., 91 Cal. App. 4th 799, 110 Cal. Rptr. 2d 799, 2001 Cal. Daily Op. Serv. 7184, 2001 Daily Journal DAR 8797, 2001 Cal. App. LEXIS 647 (Cal. Ct. App. 2001).

Opinion

Opinion

CURRY, J.

This case involves two consolidated appeals. In the first (B137602), American Contractors Indemnity Company (American Contractors) appealed from orders denying its motions to vacate forfeiture of a bond. In the second (B144246), the County of Los Angeles (County) appealed from an order setting aside summary judgment and exonerating the same bond. Both appeals present the issue of whether the failure to give notice of forfeiture in precise accordance with Penal Code section 1305, subdivision (b)1 exonerates a bond. The second appeal also raises the issue of how to calculate the last day on which motion for summary judgment on a bond may be granted. We agree with American Contractors that it was not given proper notice of forfeiture, which, under the statute, must result in release of its obligation on the bond.

Factual and Procedural History

No. B137602

On February 16, 1999, Hyun G. Kang was found guilty of multiple counts of assault, robbery, and rape. On February 26, 1999, Kang was released pursuant to a $2.5 million bond posted by OK Bail Bonds acting as an agent for American Contractors. Kang was ordered to reappear on April 6, 1999, at 8:00 a.m. for a sentencing hearing.

[802]*802Shortly after his release, the district attorney’s office became concerned that Kang had fled the United States. On March 10, 1999, nearly a month before the scheduled sentencing hearing, the district attorney’s office brought an éx parte motion for revocation of bail. The trial court revoked bail, issued a bench warrant for Kang’s arrest and, according to the parties, ordered bail forfeited as of that date. On March 17, 1999, the clerk of the court mailed notice of order forfeiting bail for failure to appear on March 10, 1999, to OK Bail Bonds and American Contractors. The notice stated: “Your contractual obligation to pay each bond will become absolute on the 181st day following the date of the mailing of notice of the forfeiture unless the Court orders the forfeiture set aside and the bond reinstated or exonerated.”

On May 25, 1999, American Contractors filed a motion to vacate the forfeiture and exonerate bail, contending that the court lacked jurisdiction to declare a forfeiture unless the defendant failed to appear at a hearing where his presence was lawfully required. According to American Contractors, the proper procedure would have been to revoke bail on March 10, but to postpone forfeiture until April 6, when Kang was scheduled to appear. The moving papers further stated that the court lost jurisdiction over the bond, having failed to declare forfeiture on April 6.

At the hearing on June 10, 1999, the court presented counsel with an excerpt from the reporter’s transcript for the April 6 sentencing hearing in which the court, having been informed that Kang was not present, stated: “No answer by the defendant Hyun Kang, bail posted is ordered forfeited, and bench warrant is issued.”2 Counsel protested that American Contractors had no notice of any such forfeiture. The court replied: “Obviously, you were on notice that the bail had been forfeited. You made this motion.” The court granted the motion to vacate the March 10 forfeiture, ruling that the forfeiture was indeed erroneous because the defendant “was not ordered to be present on that date and did not receive notice of the People’s motion to forfeit bail.” The court went on to conclude, however, that it had “retain[ed] jurisdiction to forfeit bail on April 6, 1999 when the defendant was ordered to appear.” The court then ordered the bail department “to prepare any and all necessary forfeiture notices to the surety reflecting a forfeiture date of April 6, 1999.”3 The notice was subsequently mailed by the clerk to OK Bail Bonds and American Contractors on July 1.

On July 15, 1999, American Contractors filed a motion to reconsider the June 10 order on the ground that the docket failed to reflect that the court [803]*803ordered bail forfeited on April 6, that a forfeiture number was assigned, or that a notice of forfeiture was mailed to the bail agent and surety. The declaration in support of the motion indicated that Kang had been detained by the bail agent and identified by local law enforcement personnel in Seoul, South Korea on April 8. A declaration from an American Contractors vice-president indicated that American Contractors had conducted a search of the docket in order to determine if bail had been forfeited on April 6, and found nothing.

At a hearing on July 29, the motion was denied,4 the court “finding] that the parties were on notice of the bond forfeiture on March 10, 1999 and on June 10, 1999.” The court further ruled that “[t]he 180 days, time period to produce the defendant, runs from July 1, 1999.” At the hearing, the court expressed the view that this was a case of either “premature notice” referring to the March notice of forfeiture or actual notice based on the discussion at the hearing on June 30. While not strictly in accord with the law as written, the court believed this notice sufficed to meet the statutory requirements, and that American Contractors had not been prejudiced by the failure to comply with the statute.

American Contractors filed its notice of appeal from the court’s June 10 and July 29 orders on December 6, 1999.

No. B144246

On March 17, 2000, an order granting summary judgment on the bond was entered pursuant to section 1306.5 American Contractors filed a motion to set aside the summary judgment. In its moving papers, American Contractors again argued that the court lost jurisdiction due to failure to mail timely notice of the April 6, 1999, forfeiture. It further argued that the summary judgment order had been entered long past the jurisdictional [804]*804deadline for entry contained in section 1306, subdivision (c).6 The County contended in opposition (1) that notice was received through the “premature” March notice of the March 17 forfeiture and through the bail agent’s knowledge that Kang had fled to South Korea, and (2) that the summary judgment was timely because it was entered within 275 days of July 1, 1999, the day written notice of the April 6 forfeiture was mailed.

The trial court granted the motion to set aside summary judgment and exonerated the bond, stating in its order: “The notice of the forfeiture was not mailed until approximately 90 days following the forfeiture. . . . [Mjailing of the notice within 30 days of the forfeiture was a mandatory obligation, failure of which may not be excused by the premature notice, and shall result in the discharge of the forfeiture and exoneration of the bail. . . . [ft] • ■ • The fact . . . that the surety may have known of the problem or the whereabouts of the defendant does not excuse the failure to timely mail the notice of forfeiture[] [and] the time of the entry of the summary judgment is immaterial due to the initial failure of the court to mail the notice within the 30-days.”7

This ruling was appealed by the County on August 18, 2000. We granted a motion to consolidate the two appeals on February 28, 2001.

Discussion

I

The first issue is whether the failure to comply with the statutory notice provisions must result in exoneration of the bond. Section 1305, subdivision (b) states in relevant part: “If the amount of the bond .

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Bluebook (online)
91 Cal. App. 4th 799, 110 Cal. Rptr. 2d 799, 2001 Cal. Daily Op. Serv. 7184, 2001 Daily Journal DAR 8797, 2001 Cal. App. LEXIS 647, Counsel Stack Legal Research, https://law.counselstack.com/opinion/people-v-american-contractors-indemnity-co-calctapp-2001.