State v. Smith

628 P.2d 65, 129 Ariz. 28, 1981 Ariz. App. LEXIS 401
CourtCourt of Appeals of Arizona
DecidedApril 28, 1981
Docket1 CA-CR 4659
StatusPublished
Cited by13 cases

This text of 628 P.2d 65 (State v. Smith) is published on Counsel Stack Legal Research, covering Court of Appeals of Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State v. Smith, 628 P.2d 65, 129 Ariz. 28, 1981 Ariz. App. LEXIS 401 (Ark. Ct. App. 1981).

Opinion

OPINION

HAIRE, Presiding Judge.

On this appeal, appellant contends that the trial court erred in imposing as a condition of appellant’s probation a requirement that he not allow his home to be homesteaded under Arizona law. He contends that precluding him from placing a homestead exemption on his home constitutes a violation of the public policy of this state and is an illegal condition of probation.

Appellant’s conviction resulted from a guilty plea to a charge of grand theft by embezzlement, with appellant admitting the embezzlement of approximately $40,000 from his employer to cover gambling debts. He had signed a promissory note to repay $18,000 to his employer, and the employer had obtained a lien in that amount against *29 appellant’s home. However, at the time of sentencing, restitution had not been made. 1

Since appellant had no prior criminal record, he was considered a prime candidate for probation. A principal aspect of the presentence investigation report issued by the probation department concerned appellant’s attitude towards assuming responsibility for his crime and his willingness to make restitution. At all times prior to sentencing appellant expressed a willingness to make full restitution through a future sale of his home with the equity to go to the embezzlement victim. He also expressed a willingness to commence immediately monthly restitution payments.

The probation officer included in his presentence investigation report a summarization of appellant’s statement in that regard, as follows:

“The defendant reports that he has every intention of repaying the money taken but because of his limited financial earning capability he has been unable to do so. He reports present equity in his home of $20,000.00 and advises that he is willing to sell his home and turn the equity over to his former employer or to keep the home for a time, then sell it and turn it over to his former employer. In the meantime he has expressed a willingness to begin monthly restitution payments.
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He states that he is fully prepared to turn the equity of his home over to his previous employer and that if he is able to keep his home for another year or two he believes that all or at least a substantial part of the money he embezzled would be forthcoming upon the sale of his home. He asserts that this is the only asset he possesses and he and his wife understand that they must give up their home if full restitution is to be made. In the meantime the defendant expressed his willingness to begin making monthly payments towards restitution although he believes they would be a serious financial bind on his family.”

At the presentence hearing, appellant’s counsel again emphasized to the trial judge appellant’s desire to make complete restitution, including his willingness to sell his home for that purpose. Thereafter, the trial judge, in support of his finding of facts and circumstances sufficient to justify probation, stated:

“I have taken into consideration the nature of the offense, the fact that this was your first arrest, the fact that you are willing to do everything possible to pay restitution in this matter.”

After placing appellant on probation for a period of seven years, the trial judge then imposed two special restitution conditions. The first 2 required that $10,000 be paid through the clerk of the court in regular monthly payments of $125. The second restitution condition 3 was that he not allow his home to be homesteaded. This condition emanated from appellant’s previously expressed willingness to dispose of his home. The transcript reveals the following colloquy between the court and appellant concerning this condition:

“THE COURT: Also, under special condition number 20, ‘The defendant shall not allow his home to be homesteaded under the Arizona law.’ Do you understand that?
“THE DEFENDANT: Yes, Your Hon- or.
“THE COURT: And you understand the reason for that?
“THE DEFENDANT: Yes, Your Hon- or.”

Appellant now contends that this second condition violates public policy and is an illegal condition of probation. In evaluating this contention we note that prior Arizona case law has interpreted the Arizona probationary statutes as authorizing res *30 titution as a condition of probation. 4 Shenah v. Henderson, 106 Ariz. 399, 476 P.2d 854 (1970); Redewill v. Superior Court, 43 Ariz. 68, 29 P.2d 475 (1934); State v. Cummings, 120 Ariz. 69, 583 P.2d 1389 (App. 1978); State v. Garner, 115 Ariz. 579, 566 P.2d 1055 (App.1977). The fundamental principle established by these and other Arizona decisions is that unless the terms of probation are such that they violate fundamental rights or bear no reasonable relationship to the purposes of probation over incarceration, the appellate courts will not interfere with the trial court’s exercise of discretion in the formulation of the terms and conditions of probation. State v. Cummings, supra; see also State v. Davis, 119 Ariz. 140, 579 P.2d 1110 (App.1978). Our courts have recognized that the imposition of conditions requiring restitution can have a sound rehabilitative effect in forcing the defendant to accept the responsibility for his criminal behavior, and that rehabilitation of the defendant and restitution to the victim are both proper goals of the criminal justice system.

Against this background we now consider appellant’s contention that the trial judge erred in imposing as a condition of probation a requirement that he not allow his home to be homesteaded. First, we view this condition as a restitution condition falling within the purview of the above-cited decisions, and well within the discretion of the trial judge unless it can be said that the public policy of this state absolutely prohibits the trial judge’s requirement that appellant waive that right.

From a review of the Arizona statutes governing homestead exemptions, 5 it is abundantly clear that the exemption may be voluntarily waived. First and foremost, a person claiming the exemption must take positive steps to assert and record a homestead claim. A.R.S. § 33-1102. The homestead right may be waived by the simple failure to assert the claim prior to execution sale. First National Bank of Mesa v. Reeves, 27 Ariz. 508, 234 P. 556 (1925).

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Bluebook (online)
628 P.2d 65, 129 Ariz. 28, 1981 Ariz. App. LEXIS 401, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-v-smith-arizctapp-1981.