State v. Lalain

2013 Ohio 3093, 994 N.E.2d 423, 136 Ohio St. 3d 248
CourtOhio Supreme Court
DecidedJuly 17, 2013
Docket2012-0302 and 2012-0408
StatusPublished
Cited by98 cases

This text of 2013 Ohio 3093 (State v. Lalain) is published on Counsel Stack Legal Research, covering Ohio 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. Lalain, 2013 Ohio 3093, 994 N.E.2d 423, 136 Ohio St. 3d 248 (Ohio 2013).

Opinions

O’Donnell, J.

{¶ 1} Daniel Lalain appeals from a judgment of the Eighth District Court of Appeals affirming his conviction of a fifth-degree-felony theft offense, which included an order to pay $63,121 in restitution for costs Aero-Instruments incurred to investigate the theft and appraise the value of the stolen property. The appellate court also certified that its decision conflicts with State v. Ratliff, 194 Ohio App.3d 202, 2011-Ohio-2313, 955 N.E.2d 425 (2d Dist.), on the following question:

Whether, despite the defendant’s failure to object, it is error for the trial court to order a defendant to pay an amount of restitution in the absence of a specific plea agreement and without a hearing or evidence substantiating the economic loss claimed by the plaintiff?

[250]*250131 Ohio St.3d 1551, 2012-Ohio-2263, 967 N.E.2d 763.

{¶ 2} We determined that a conflict existed, id., accepted Lalain’s discretionary appeal, 132 Ohio St.3d 1486, 2012-Ohio-3334, 971 N.E.2d 962, and consolidated the matters for review.

{¶ 3} R.C. 2929.18(A)(1) gives a sentencing court discretion to order restitution but not in an amount greater than the amount of economic loss suffered by the victim as a direct and proximate result of the commission of the offense. The court may base the amount of restitution on an amount recommended by the victim, the offender, a presentence investigation report, estimates or receipts indicating the cost of repairing or replacing property, and other information. Further, the statute mandates that the court must conduct a hearing if the offender, victim, or survivor disputes the amount.

{¶ 4} In this case, the victim submitted a letter seeking to recover the cost of an expert report on the value of its loss and the time spent by employees trying to identify and value the items taken — all of which were returned. It sought $63,121 as restitution for expenses not incurred as the direct and proximate result of the commission of the offense. Further, at sentencing, although Lalain’s counsel disputed the amount of restitution, the court failed to hold a hearing.

{¶ 5} Accordingly, we reverse the judgment of the court of appeals and remand the case for further proceedings consistent with this opinion.

Facts and Procedural History

{¶ 6} Daniel Lalain worked as an engineer for Aero-Instruments, a Cleveland company that designs aviation and aerospace components such as air-speed and altitude sensors. In June 2008, Lalain resigned without notice, taking electronic files copied from his work computer as well as duplicates of documents from his office files. In addition, he retained two probes that he had previously taken home for testing.

{¶ 7} On July 2, 2008, Aero-Instruments commenced a civil action against Lalain seeking recovery for misappropriation of trade secrets and proprietary product information, and it obtained a temporary restraining order to prevent him from sharing any information with competitors. After Lalain resigned, the company contacted law enforcement, claiming that he had stolen intellectual property, and as a result, officers executed a search warrant at Lalain’s home and recovered the property he had taken from Aero-Instruments.

{¶ 8} Aero-Instruments began an internal investigation to determine what had been removed from its facility, and it retained the forensic accounting department of Meaden and Moore to appraise the value of the intellectual property that Lalain had misappropriated. However, it dismissed its civil suit in January 2009 [251]*251after it determined that all of its property had been recovered and that Lalain had not disclosed any proprietary information.

{¶ 9} On June 4, 2009, the Cuyahoga County Grand Jury indicted Lalain for first-degree-felony theft, alleging that he had stolen intellectual property, test data, computer equipment, computer memory devices, proprietary documents, and product prototypes — property allegedly valued at $1 million or more.

{¶ 10} On August 16, 2010, Lalain pleaded guilty to an amended indictment for fifth-degree-felony-theft of property valued at $500 or more but less than $5,000. Lalain acknowledged the potential criminal penalties that the court could impose at sentencing, including restitution to Aero-Instruments. However, the parties did not discuss the amount of restitution at the plea hearing, nor did they include restitution as an express term of the plea agreement.

{¶ 11} At sentencing on September 24, 2010, the trial court referenced a letter from Ryan Mifsud of Aero-Instruments describing economic losses the company had suffered from the theft of its property. That letter, which the court incorporated into the record, states:

We have been asked to provide information regarding the financial impact on the company regarding the theft of property and the subsequent process that was undertaken to identify and value the property that was recovered by Cleveland Police in July, 2008. We have calculated the cost to Aero-Instruments for the time spent by its employees in support of this case to be $55,456.00. This estimate does not include any costs for materials and supplies associated with the sorting, filing and copying of the more than 9,000 pages of documents and over 100 items recovered by the Cleveland Police from Mr. Lalain’s possession.
In order to provide the County Prosecutor’s Office with an accurate valuation of the property that was recovered, Aero-Instruments contracted with Meaden and Moore and their Forensic Accounting department to determine a valuation of the property that was taken from the company. The cost associated with this activity was $7,665.00. Aero-Instruments is looking for restitution in the form of repayment by Mr. Lalain for these costs.

(Emphasis added.)

{¶ 12} Defense counsel asserted that at least some of these costs had been incurred “in furtherance of a civil lawsuit,” and he stated, “I think that that is where that Meaden & Moore record was generated for that purpose, not for the [252]*252criminal prosecution. I don’t think Daniel should be held responsible for any of that cost.”

{¶ 13} In response, the prosecutor argued:

I also take exception with the point raised about the Meaden & Moore accounting. That accounting was taken on by Aero at the expressed advice of my supervisor, Paul Soucie, after several meetings, so that they could discuss how this case could actually be appreciated and valuated and evaluated. * * *
* * *
But that Meaden & Moore work cost a lot of money in order to establish this case. Aero undertook a number of expenses which the county could never have afforded to pay for in order to investigate this case.

{¶ 14} The trial court sentenced Lalain to a four-year term of community control and ordered him to pay restitution to Aero-Instruments in the amount of $63,121 — $55,456 for the company investigation and $7,665 for the Meaden & Moore accounting.

{¶ 15} Lalain appealed to the Eighth District Court of Appeals, assigning error based on the order of restitution. The Eighth District affirmed, holding that R.C.

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Cite This Page — Counsel Stack

Bluebook (online)
2013 Ohio 3093, 994 N.E.2d 423, 136 Ohio St. 3d 248, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-v-lalain-ohio-2013.