State v. Norris

2001 UT 104, 48 P.3d 872, 6 A.L.R. 6th 749, 436 Utah Adv. Rep. 27, 2001 Utah LEXIS 190, 2001 WL 1567437
CourtUtah Supreme Court
DecidedDecember 11, 2001
Docket20000698
StatusPublished
Cited by18 cases

This text of 2001 UT 104 (State v. Norris) is published on Counsel Stack Legal Research, covering Utah 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. Norris, 2001 UT 104, 48 P.3d 872, 6 A.L.R. 6th 749, 436 Utah Adv. Rep. 27, 2001 Utah LEXIS 190, 2001 WL 1567437 (Utah 2001).

Opinion

DURRANT, Justice:

T1 In this appeal, we consider the constitutionality of a search warrant issued by a magistrate authorizing the seizure of all business records from three corporations. The corporations were allegedly operated by Richard Norris to commit communications fraud. At a pre-trial hearing, the district court held that, although probable cause existed for the issuance of the "all records" search warrant, the warrant violated the Fourth Amendment's particularity requirement because it was overly broad. Due to that determination, the district court suppressed all the evidence seized by the State pursuant to the warrant. We affirm the district court's probable cause holding, but reverse its decision with respect to the Fourth Amendment's particularity requirement. An "all records" search warrant is sufficiently particular where the affidavit serving as the basis for the warrant includes allegations sufficient to support a conclusion that the business to be searched is permeated with fraud. Such an affidavit is present here. Accordingly, we hold that the district court erred in granting Norris's motion to suppress.

BACKGROUND

12 On April 1, 1997, Ronald Barton, a Special Agent for the Utah Attorney General's Office, Consumer Rights Division, appeared before a magistrate requesting a search warrant. In support of his request, Barton prepared a twenty-one page affidavit and presented it to the magistrate. In this affidavit, Barton alleged that Norris and Em-illo Cortez defrauded citizens of Utah via three companies incorporated in Pennsylvania: Maxtron Corporation, Santos International, and United Investors Credit Services. Specifically, Barton claimed that Norris had devised and implemented a scheme to defraud Utah subcontractors by inducing them to enter into advertising contracts, inducing them to breach these contracts, and then suing them.

I. ALLEGATIONS CONTAINED IN BARTONS AFFIDAVIT

T3 Barton's affidavit relied upon statements obtained from eleven individuals, including two of Norris's former employees and several subcontractors. Based on these statements, Barton claimed that Norris initiated the fraud by approaching general contractors conducting business in Utah and asking them to "sponsor" quarterly construction brochures. These brochures contained space for advertising. Norris allegedly persuaded the general contractors to act as sponsors by offering to publish the brochures free of charge.

{4 Once Norris received approval from the general contractors, he purportedly sold the advertising space included in the brochures to subcontractors that had a prior employment relationship with the general contractor. Barton further alleged in his affidavit that ninety-nine percent of the subcontractors purchasing advertising space signed promissory notes obligating them to make installment payments to Maxtron, a corporation listing Norris as its president. These signed notes contained a confession of judgment provision recognized under Pennsylvania law, 1 which authorized Maxtron to obtain confessions of judgment against defaulting subcontractors for the full amount of *875 the promissory note and $2,000 in attorney fees.

I5 Following the execution of these promissory notes, Norris, acting on behalf of Maxtron, allegedly transferred Maxtron's contractual rights to Santos International. Norris then, acting as an agent for Santos International, immediately transferred the rights from Santos International to United Investors. Although Norris. allegedly informed the subcontractors that he had no affiliation with either Santos International or United Investors, Barton's affidavit asserted that Norris opened the mail sent to each corporation, managed the finances of both companies, and was the sole signatory on all of the accounts owned by the two businesses.

1 6 Following the transfer of these contractual rights, Norris purportedly led the subcontractors into default through various misrepresentations. According to the affidavit, Norris lulled the subcontractors into default by informing them that they did not have to make any payments until they received, and approved, the advertisement proofs from Maxtron. Further, Norris allegedly told the subcontractors they should ignore any notices demanding payment sent by Santos International or United Investors.

T7 According to the affidavit, the subcontractors relied on Norris's misrepresentations and defaulted on the promissory notes. Norris then allegedly obtained confessions of judgment against the subcontractors in Pennsylvania. These default judgments resulted in United Investors recovering the full value of the promissory notes and $2,000 in attorney fees.

18 Barton's affidavit also included extensive allegations regarding the business purpose behind the Pennsylvania corporations, including the following allegations: (1) the money generated from the advertising contracts sold to the subcontractors barely covered the cost of publishing the brochures, (2) Maxtron produced just one legitimate brochure during the six month tenure of one of Norris's former employees, (8) Maxtron occasionally published falsified brochures in an attempt to prove that the advertisement proofs were created before the subcontractors had defaulted, (4) Norris incorporated Maxtron, Santos International, and United Investors in Pennsylvania to take advantage of Pennsylvania's confession of judgment law, (5) Norris inserted the confession of judgment language into the promissory notes because it enabled him to obtain judgments against the subcontractors without notifying them or serving them with any papers, (6) Norris preferred to sue the subcontractors because "suing the subs on the contracts was actually how he made his money," and (7) Norris profited in the amount of $1800 by including the attorney fee provision in the promissory notes because he paid his attorneys only $200 for each default judgment.

II. ISSUANCE OF THE "ALL RECORDS" SEARCH WARRANT

T9 Based on the allégations contained in Barton's affidavit, the magistrate concluded that all the business documents of the three corporations were "used to commit a ... public offense," intended to be "use[d] as a means of committing a ... public offense," or comprised "evidence of illegal conduct." The magistrate therefore issued a search warrant authorizing state agents to (1) search both Norris's business establishment and personal residence and (2) seize "documents relating to the business activities of Richard Franklin Norris and Emilio Cortez, operating as Max-tron Corp.[ ], Santos International, and United Investors." Acting under the authority of this warrant, state agents seized all the business documents. of the three corporations located at the two locations specified in the warrant.

III. DISTRICT COURT REVIEW

[ 10 Subsequently, the State charged Norris with seven counts of communications fraud. Following a preliminary hearing, the district court bound Norris over for trial on all seven counts. Norris then moved to suppress the evidence seized by the State pursuant to the warrant. After a hearing on this matter, the district court granted Norris's motion to suppress, concluding that the search warrant violated the Fourth Amendment's particularity requirement. The dis *876

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Bluebook (online)
2001 UT 104, 48 P.3d 872, 6 A.L.R. 6th 749, 436 Utah Adv. Rep. 27, 2001 Utah LEXIS 190, 2001 WL 1567437, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-v-norris-utah-2001.