People v. Foos

2016 COA 139, 409 P.3d 561, 2016 Colo. App. LEXIS 1337
CourtColorado Court of Appeals
DecidedSeptember 22, 2016
DocketCourt of Appeals 15CA1462
StatusPublished
Cited by1 cases

This text of 2016 COA 139 (People v. Foos) is published on Counsel Stack Legal Research, covering Colorado Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
People v. Foos, 2016 COA 139, 409 P.3d 561, 2016 Colo. App. LEXIS 1337 (Colo. Ct. App. 2016).

Opinion

Opinion by

JUDGE FREYRE

¶ 1 Defendant, Curtis Lynn Foos, appeals the district court’s restitution order. We affirm.

I. Background

¶ 2 In 2011, Foos filed for bankruptcy. The United States Bankruptcy Court entered an order of discharge resulting in a complete discharge of Foos’ debts.

¶ 3 In 2013, Foos was charged with two counts of felony theft and one count of defrauding a secured creditor. Prior to his bankruptcy proceedings, Foos owed money to the victims identified in each of the three counts.

¶ 4 The district attorney who brought the charges was later recused from the case because her husband’s company was a creditor in the Foos bankruptcy proceeding, as were the three alleged victims in the criminal complaint. The court appointed a special prosecutor from another judicial district who elected to move forward with the charges.

¶ 5 After the appointment of the special prosecutor, Foos pleaded guilty to the chai-ge of defrauding a secured creditor in exchange for the prosecution dismissing the two counts of felony theft. The parties stipulated to a three-year deferred judgment and sentence with a requirement for full restitution. After a hearing, the district court ordered Foos to pay restitution of $58,047.13 to Perry Huffman.

II. Restitution Order

¶ 6 Foos contends that the district court erred in ordering him to pay restitution for three reasons: (1) Foos had previously discharged his debt to Huffman in bankruptcy; (2) Foos was prosecuted in bad faith; and (3) Foos was ordered to pay restitution for a count to which he did not plead guilty. We disagree.

A.Standard of Review

¶ 7 The trial court has broad discretion in setting the terms and conditions of restitution, and, absent a showing that the court abused its discretion by misconstruing or misapplying the law, we will not disturb its ruling. People v. Reyes, 166 P.3d 301, 302 (Colo. App. 2007).

B.Timing of Bankruptcy Discharge

¶ 8 Foos contends that the district court erred in ordering him to pay restitution because he discharged his debts through bankruptcy prior to charges being filed against him.

1. Applicable Law

¶ 9 Colorado’s restitution statute expressly states that restitution orders are not dis-chargeable in bankruptcy. § 18 — 1.3—603(4)(d), C.R.S. 2015 (“Any order of restitution imposed shall be considered a debt for rtvillful and malicious’ injury for purposes of exceptions to discharge in bankruptcy as provided in 11 U.S.C. sec. 523.”).

¶ 10 Our supreme court has also held that “[t]he fact that the defendant’s personal liability ... was discharged in the United States Bankruptcy Court does not preclude restitution.” People v. Milne, 690 P.2d 829, 837 (Colo. 1984). The defendant in Milne was unable to repay investment notes, declared bankruptcy, and had his liability to the holders of the notes discharged. Id. at 832. He was later charged and convicted of selling securities without a license. Id. at 833. Our supreme court concluded that the district court did not err in ordering the defendant to pay restitution to the unpaid noteholders as a condition of his probation. Id. at 838.

¶ 11 In reaching this conclusion, the court explained the differing goals behind the restitution and bankruptcy statutes. Id. at 837. “An order requiring the payment of restitution as a condition of probation is as much a part of a criminal sentence as a fine or other *563 penalty.” Id. As such, “[rjestitution does not create a debt or a debtor-creditor relationship between the defendant and the victim, and it is not intended as a substitute for a civil action for damages.” Id. In contrast, the bankruptcy laws “are designed to provide financial relief to overly extended debtors.” Id. A discharge in bankruptcy insulates “a debtor from liability on any civil claim for payment arising out of the discharged debt.” Id Accordingly, the supreme court concluded that “[ijnasmuch as the bankruptcy laws are not intended to relieve a defendant from the legal consequences of a criminal conviction, monetary penalties imposed for the violation of criminal laws ... are not dischargeable in bankruptcy.” Id.

¶ 12 The supreme court also specifically addressed the “validity of an order of restitution following a discharge in bankruptcy[.j” Id. The court relied on a Fifth Circuit Court of Appeals case which held that the discharge of a defendant’s debt did not prohibit the district court from subsequently conditioning the defendant’s probation on the payment of restitution. Id. (citing United States v. Carson, 669 F.2d 216, 218 (5th Cir. 1982)). Based on Carson, the supreme court held that the district court did not err in ordering the defendant to pay restitution as a condition of his probation, despite the fact that his liability to the holders of the notes had previously been discharged. Id. at 838.

¶ 13 Our supreme court’s holding in Milne is consistent with the United States Supreme Court’s holding in Kelly v. Robinson, 479 U.S. 36, 50, 107 S.Ct. 353, 93 L.Ed.2d 216 (1986), where a criminal defendant sought to discharge the restitution order in her criminal case in a Chapter 7 bankruptcy proceeding. The Supreme Court held that “any condition a state criminal court imposes as part of a criminal sentence” is not dischargeable in bankruptcy proceedings. Id.

2. Application

¶ 14 Foos acknowledges that § 18-1.3-603(4)(d) precludes the discharge of a restitution order in bankruptcy proceedings. He argues that the statute does not apply, however, because he discharged his debt before criminal charges were filed against him, and because he is not seeking discharge of a restitution order in bankruptcy proceedings. He also argues that Milne does not apply because it was decided before the General Assembly enacted § 18-1.3-603. However, because the restitution statute does not conflict with the holding in Milne, we have no reason to believe that the General Assembly intended to overturn Milne and conclude that we are bound by its holding in resolving this case. See People v. McCullough, 6 P.3d 774, 778 (Colo. 2000) (“[W]e assume that the General Assembly was apprised of existing case law.”).

¶ 15 The facts of this case are analogous to those in Milne. In 2012, the United States Bankruptcy Court discharged Foos’ debt against the three victims in this case. The following year, Foos was charged with three felony counts.

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Related

People in the Interest of A.V
2018 COA 138 (Colorado Court of Appeals, 2018)

Cite This Page — Counsel Stack

Bluebook (online)
2016 COA 139, 409 P.3d 561, 2016 Colo. App. LEXIS 1337, Counsel Stack Legal Research, https://law.counselstack.com/opinion/people-v-foos-coloctapp-2016.