State v. Ashley

772 P.2d 377, 108 N.M. 343
CourtNew Mexico Court of Appeals
DecidedMarch 7, 1989
Docket10661
StatusPublished
Cited by9 cases

This text of 772 P.2d 377 (State v. Ashley) is published on Counsel Stack Legal Research, covering New Mexico Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State v. Ashley, 772 P.2d 377, 108 N.M. 343 (N.M. Ct. App. 1989).

Opinions

OPINION

HARTZ, Judge.

Defendant appeals the revocation of his probation by the district court. We discuss his claim that the evidence was insufficient to support the district court’s finding that he committed extortion and deal summarily with his remaining contentions. We affirm the revocation, but not without some unease about the scope of the statutory definition of extortion, which the legislature may wish to address.

We view the evidence in the light most favorable to the state. See State v. Tovar, 98 N.M. 655, 651 P.2d 1299 (1982). The victim, Charles DeOurso, was looking for an investor to help him buy the building in which he leased space for his Albuquerque health club. A business acquaintance of DeOurso’s introduced him to defendant as someone who might help. At their first meeting defendant told DeOurso that he was involved with some “very heavy people, powerful people,” and he could buy the building. Defendant then contacted the owner of the building, who told him that the purchase price would be 1.3 million dollars cash. Defendant told DeOurso that “his people” could come up with the money. He offered DeOurso a 49% ownership interest in the building, but said he would need $3,500 to fly him and his bodyguard to meet with his people in the Bahamas, return to Albuquerque, and then go to Colorado Springs to pay the building owner.

When DeOurso expressed doubt about his ability to raise $3,500, defendant said if DeOurso did not come up with the money, defendant would go ahead with the deal and run DeOurso out. Defendant told De-Ourso that as soon as defendant bought the facility, DeOurso would be evicted. Defendant said he did not care, about the health club or its members, that he would close the club, allow gambling and prostitution there, and “burn” everybody to whom DeOurso owed money. Defendant visited the club several times, telling employees he would soon be the boss and that it might not be a club any more. DeOurso and his employees felt threatened and feared that defendant would take over the club. The dealings ended after DeOurso contacted his attorney and the police. Evidence admitted at the hearing would support a finding that defendant did not have access to 1.3 million dollars.

New Mexico’s extortion statute provides:

Extortion consists of the communication or transmission of any threat to another by any means whatsoever with intent thereby to wrongfully obtain anything of value or to wrongfully compel the person threatened to do or refrain from doing any act against his will.
Any of the following acts shall be sufficient to constitute a threat under this section:
A. a threat to do an unlawful injury to the person or property of the person threatened or of another;
B. a threat to accuse the person threatened, or another, of any crime;
C. a threat to expose, or impute to the person threatened, or another, any deformity or disgrace;
D. a threat to expose any secret affecting the person threatened, or another; or
E. a threat to kidnap the person threatened or another.

NMSA 1978, § 30-16-9 (Repl.Pamp.1984).

The state relies on subsection A, contending that defendant threatened an unlawful injury to the property of DeOurso. Defendant answers that the injury threatened was not unlawful.

We need not decide if a threat just to sue for eviction could constitute “a threat to do an unlawful injury.” Cf. I.S. Joseph Co. v. J. Lauritzen A/S, 751 F.2d 265 (8th Cir.1984) (threat to sue could not form basis for violation of federal extortion statute, the Hobbs Act, 18 U.S.C. § 1951). Defendant never specifically mentioned a lawsuit. DeOurso testified that the threat was to “run me out.”

Nevertheless, defendant argues that it is lawful for a landlord to breach a lease and then pay damages to, in effect, buy his way out of the lease. He relies on California precedent. California’s extortion statute, CaLPenal Code §§ 518, 519 (West 1988), is similar to ours, and prohibits threats “[t]o do an unlawful injury to * * * property ****’’ Defendant cites People v. Schmitz, 7 Cal.App. 330, 94 P. 407 (1908), aff'd, 7 Cal.App. 330, 94 P. 419 (1908), for the proposition that threatening a lawful act is not extortion. He points to an example Schmitz provides of a property owner who threatens to build a stable on his own land unless his neighbor pays him $1,000. Because the property owner had the right to build the stable, his threat would not constitute extortion. 7 Cal.App, at 368, 94 P. at 419.

Contract law does not, however, recognize a “right” of a party to a contract to breach the contract and compel the other party to resort to the courts to obtain a remedy. Defendant was not negotiating with DeOurso to purchase his leasehold rights. In the context of extortion we do not equate (1) performing the contract and (2) paying a judgment for damages for breach. See T. Robison, Enforcing Extorted Contract Modifications, 68 Iowa L.Rev. 699, 706 ff. (1983). Cf. First Nat’l Bank in Clayton v. Wood, 93 N.M. 467, 601 P.2d 437 (Ct.App.1979) (Wood, C.J., concurring) (bank had no legal right to refuse to honor obligation to lend money unless borrower guaranteed third party’s debt). California authority supports this view. In affirming the court of appeals’ decision in Schmitz, the California Supreme Court stated that the term “unlawful injury,” in its broadest meaning,

can include no injury that is not of such a character that, if it had been committed as threatened, it would have constituted an actionable wrong, an injury for which an action for the resultant damages could be maintained against the defendant, or which, if merely threatened, could be enjoined in equity if the remedy at law were deemed inadequate.

7 Cal.App. at 370, 94 P. at 420. Thus, apparently the California Supreme Court would include breaches of contract within the meaning of “unlawful injury.” See People v. Sanders, 188 Cal. 744, 756-757, 207 P. 380, 385-386 (1922) (“unlawful injury” includes actionable wrongs).

Such an interpretation of “unlawful” also finds support in a comment of the official reporter to the Model Penal Code (1980) provision on extortion, Section 223.4. In explaining the merits of the provision, the comment criticizes the language “any illegal act injurious to character, person, or property” found in some extortion statutes, because the words “would appear to embrace breach of contract and similar conduct for which a civil remedy is available.” § 223.4 at 210.

New Mexico cases interpreting the word “unlawful” in the context of a criminal prosecution have given it a broad reading. In a murder prosecution the New Mexico Supreme Court said that “unlawful” means “not authorized by law” and “is equivalent to ‘without excuse or justification.’ ” State v. Noble, 90 N.M. 360, 364, 563 P.2d 1153

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State v. Ashley
772 P.2d 377 (New Mexico Court of Appeals, 1989)

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Bluebook (online)
772 P.2d 377, 108 N.M. 343, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-v-ashley-nmctapp-1989.