State v. Gates

2015 ND 177, 865 N.W.2d 816, 2015 WL 3999054
CourtNorth Dakota Supreme Court
DecidedJuly 1, 2015
Docket20140317, 20150036
StatusPublished
Cited by7 cases

This text of 2015 ND 177 (State v. Gates) is published on Counsel Stack Legal Research, covering North Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State v. Gates, 2015 ND 177, 865 N.W.2d 816, 2015 WL 3999054 (N.D. 2015).

Opinion

KAPSNER, Justice.

[¶ 1] Joan Gates appeals from a district court order requiring her to pay $93,257.74 in restitution to the personal representative of the Lela Gates Estate and from an order denying her application for post-conviction relief. We modify the restitution order and affirm as modified, and we affirm the order denying Gates’ application for post-conviction relief.

I

[¶ 2] Gates was charged with misapplication of entrusted property for acts she allegedly committed while she was serving as the personal representative of the Estate of Lela Gates. A jury found Gates guilty. The district court entered a criminal judgment and ordered Gates to pay $23,537.72 in restitution. The district court informed the parties it was reserving the issue of additional restitution and a hearing would be held after an anticipated appeal was complete. Gates appealed, and this Court summarily affirmed the criminal judgment. State v. Gates, 2014 ND 99, 859 N.W.2d 929.

[¶ 3] A proposed order for restitution was filed, requesting the court order $368,459.66 in total restitution, including restitution for the proceeds from the sale *818 of stock, oil checks, and other amounts. After a hearing on the additional restitution, the district court sent the parties a letter advising them of its position on the restitution issues and indicating how it intended to decide on each item of requested restitution. The court requested the personal representative of the Estate of Lela Gates, Mark Westereng, review his research to ensure there were no duplications in the amounts requested. The court also advised the parties that they could submit additional documentation regarding the matters addressed in the letter. Gates filed an affidavit and attached documents in response to the court’s letter. No other materials or responses were submitted. The court ordered Gates pay a total of $93,257.74 in restitution to the personal representative of the Lela Gates Estate.

[¶ 4] Gates applied for post-conviction relief. The State filed a response and requested the application be dismissed. The district court denied Gates’ application.

II

[¶ 5] Gates argues the evidence does not support the district court’s findings about the amount of restitution ordered. She claims the oil checks and proceeds from the stock sales were deposited in the Estate’s bank accounts and the money was used to pay monthly bills and liens against the Estate.

[¶ 6] The district court may order restitution as part of a criminal defendant’s sentence after a hearing on the matter. N.D.C.C. § 12.1-32-08(1). Our review of a restitution order is limited to whether the district court acted within the prescribed limits of the statute, which is similar to the abuse of discretion standard. State v. Bingaman, 2002 ND 210, ¶ 4, 655 N.W.2d 57. A district court abuses its discretion when it acts in an arbitrary, unreasonable, or unconscionable manner, or when it misinterprets or misapplies the law. State v. Kleppe, 2011 ND 141, ¶ 28, 800 N.W.2d 311.

[¶ 7] “[District] courts have a wide degree of discretion when determining restitution awards.” State v. Gendron, 2008 ND 70, ¶ 8, 747 N.W.2d 125. In ordering restitution, the court shall consider: (1) the reasonable damages sustained by the victims, (2) the ability of the defendant to pay monetary reparations, and (3) the likelihood that attaching a condition relating to restitution will serve a valid rehabilitation purpose. N.D.C.C. § 12.1-32-08(1). The State has the burden to prove the amount of restitution by a preponderance of the evidence. Kleppe, 2011 ND 141, ¶ 28, 800 N.W.2d 311. ‘“Eviden-tiary imprecision on the amount of damages does not preclude recovery.’ ” Gendron, at ¶ 8 (quoting Keller v. Bolding, 2004 ND 80, ¶ 21, 678 N.W.2d 578). “When the quantity of damages awarded ‘may be hard to prove, the amount of damages is to be left to the sound discretion of the finder of facts.’ ” Gendron, at ¶ 8 (quoting B.W.S. Invs. v. Mid-Am Restaurants, Inc., 459 N.W.2d 759, 764 (N.D.1990)).

[¶ 8] Gates was found guilty of misapplication of entrusted property, and the district court initially ordered her to pay $23,537.72 in restitution based on the evidence presented during the trial. However, the court reserved the issue of ordering additional restitution and after a hearing, ordered Gates pay $93,257.74 in total restitution. .The court noted there were three categories of restitution items: (1) expenditures Gates made in her fiduciary capacity for purposes unrelated to the administration of the estate, (2) funds she received in her fiduciary capacity that were not deposited into estate accounts, and (3) expenditures others made resulting from and *819 addressing Gates’ unlawful conduct. The court ordered Gates pay $37,757.72 in restitution for improper expenditures of estate funds, based upon testimony and an exhibit listing unknown or suspicious expenditures Westereng identified from the Estate’s bank accounts. The court found Westereng’s testimony about the expenditures was persuasive and established the expenditures were improper. The court ordered Gates pay $46,857.51 for misappropriated stock proceeds, finding Gates misappropriated $5,555.90 from the sale of Sempra stock and $41,301.61 from the sale of Pacific Gas & Electric stock. The court also ordered Gates pay $2,742.51 for misappropriated oil checks, $2,400.00 in legal fees, and $3,500.00 in personal representative fees.

[¶ 9] Gates argues the court erred in ordering she pay restitution for the oil checks. She claims the checks from the Crooks oil well were received and deposited in the Estate’s bank accounts and the money was used to pay the Estate’s monthly bills.

[¶ 10] Gates’ brother testified that he was unable to determine what happened to the checks the Estate received for its interest in a Crooks oil well. He testified the company that distributes the checks for the oil well was contacted and he was able to determine multiple checks totaling $2,742.51 were issued for the Estate’s interest in the well while Gates was the personal representative, but he was unable to determine what happened to those funds. Gates presented statements from the Estate’s bank accounts showing a deposit for an amount that matched one of the Crooks oil checks; however, she did not present any evidence showing the deposit was an oil check or showing the remaining checks were deposited in the Estate’s accounts. The district court did not abuse its discretion by ordering restitution for these amounts.

[¶ 11] Gates argues the court erred in ordering her to pay restitution for the proceeds from the stock sales. She claims there was evidence the funds from the sale of the stocks were deposited in the Estate’s bank account, the funds were used to pay liens against the Estate, and the State did not present any evidence about how the funds were misappropriated.

[¶ 12] Westereng testified the stock proceeds were deposited in the Estate’s bank account and over time the funds were used.

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Cite This Page — Counsel Stack

Bluebook (online)
2015 ND 177, 865 N.W.2d 816, 2015 WL 3999054, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-v-gates-nd-2015.