State v. Stepniewski

314 N.W.2d 98, 105 Wis. 2d 261, 1982 Wisc. LEXIS 2490
CourtWisconsin Supreme Court
DecidedJanuary 5, 1982
Docket80-750-CR
StatusPublished
Cited by37 cases

This text of 314 N.W.2d 98 (State v. Stepniewski) is published on Counsel Stack Legal Research, covering Wisconsin 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. Stepniewski, 314 N.W.2d 98, 105 Wis. 2d 261, 1982 Wisc. LEXIS 2490 (Wis. 1982).

Opinions

STEINMETZ, J.

The principal issue in this case is whether the state must prove intentional conduct by a defendant in all charged circumstances of a violation of [263]*263sec. 10.0.26(3), Stats. 1977,1 for a conviction. This issue involves a statutory construction and constitutional requirements of due process. The trial court, the Honorable Ted E. Wedemeyer, Jr., in a trial to the court held that intent is not a requisite to be shown for all charged circumstances and that due process was not violated. The court of appeals agreed, and we affirm.

The defendant, Edward Malee, also challenges the sufficiency of the evidence for his conviction for violating sees. 289.02(5) and 943.20 (1) (b), Stats. 1977.2

[264]*264The test on appeal for sufficiency of evidence to support a conviction is whether the evidence adduced, believed and rationally considered by the trier of fact was sufficient to prove the defendants’ guilt beyond a reasonable doubt. State v. Blaisdell, 85 Wis. 2d 172, 180, 270 N.W.2d 69 (1978).

In 1978 and 1979, the defendants, Edward Malee and Richard Stepniewski, were engaged in home improvement sales solicitations in Milwaukee county through a firm named Energy Control Systems, Inc. Mr. Malee was the president and principal stockholder in the company, while Mr. Stepniewski was a salesman-employee of the firm. Mr. Malee kept the company’s books, had the power of final approval for all the company’s contracts, coordinated work on its projects and often worked personally on homes. Mr. Stepniewski solicited contracts for the company, which included drafting contracts on behalf of the firm, and handled complaints and questions pressed by its customers.

[265]*265Evidence produced at the trial showed that Mrs. Stella Richlen and her daughter, Terri, contracted for home improvement work with Energy Control Systems, Inc., through Stepniewski. The Richlens paid a down payment of $4,000 for the work and this money was transferred to Malee for deposit in the Energy Control Systems, Inc., account. No work was ever done under this contract. Mr. Malee told the Richlens that he had given some of their money to the Boy Scouts as a contribution, but didn’t know how much of it was theirs. He also admitted at trial that he gave some of the Richlens’ money to the Boy Scouts. This usage of those funds was not a term of the contract, nor was it approved by the Rich-lens. In addition, the trial court held the defendants’ cash receipts journal clearly reflected the use of Richlens’ money in Malec’s gift to the Boy Scouts. The above admission of Malee was sufficient for conviction.

As this court stated in State v. Blaisdell, supra, at 178:

_ “Under the statutes here in question, the state’s position is the correct one. In the case of Bastian v. LeRoy, 20 Wis. 2d 470, 483, 122 N.W.2d 386 (1963), we held that the trust fund created by sec. 289.02(4), Stats, (now renumbered 289.02(5), Stats.) arises ‘when the money has been paid by the owner or mortgagee to the contractor for improving the owner’s property.’ We must look to the money paid by the owner to do the particular job and trace the use of those proceeds. Until all claims for labor and materials are paid, the contract- or’s interest in the money paid to him by the owner to the extent of the amount of all claims due and to become due for that project is merely as a trustee.”

Once the contractor (Malee) used the money of another (Richlen), given him for a particular building project, for another purpose or project before all the claims due or to become due were paid for the project that generated the payment, he violated the trust and [266]*266committed a theft. The evidence in this case demonstrated Malee violated the trust and the trial court's finding of his guilt of theft as a contractor is sustained.

The defendants, Malee and Stepniewski, were each convicted of trade practice violations, Malee of six violations and Stepniewski of 12 counts. The evidence showed that the two defendants violated ch. AG 110 Wis. Adm. Code,3 promulgated under sec. 100.20(2), Stats.4 In particular, the defendants on several occasions failed to state in writing projects’ starting and completion [267]*267dates. On other occasions, while the defendants did enter such dates in writing, they then failed to complete the projects. In two cases where work was left undone, severe damage occurred to the homes when winter arrived. Many of the homeowners victimized by the defendants were elderly and retired citizens.

The trial court sentenced Stepniewski to one and one-half years imprisonment and six consecutive years of probation. At the time of sentencing, he was on probation for an earlier conviction under the theft by contractor statute.

The court sentenced Malee to 13 months incarceration for theft by contractor, plus six consecutive years in prison. The latter sentences for home improvement violations were stayed, and Malee was placed on probation for six years.

In addition, as terms of probation, the defendants were held jointly and severally liable for full restitution.

The defendants did not raise the issue of statutory construction in the court of appeals; however, the issue is raised here.

The defendants interpret the focused language of sec. 100.26(3), Stats. 1977, “or who intentionally refuses, neglects or fails to obey any regulation made under s. 100.19 or 100.20, shall, . . .” as meaning that “intentionally" modifies all the words following it.

In State v. Balestrieri, 87 Wis. 2d 1, 7, 274 N.W.2d 269 (Ct. App. 1978), that court held: “We therefore hold that the term ‘intentional’ in sec. 100.26(3), Stats., only modifies the term ‘refuses.’ It does not modify the terms ‘neglect’ or ‘fails.’ ” This court affirmed the decision of the court of appeals in Balestrieri by an evenly divided court. State v. Balestrieri, 96 Wis. 2d 361, 362, 291 N.W. 2d 579 (1980). The issue is again before this court.

[268]*268The statute is “capable of being understood by reasonably well-informed persons in two or more different senses” and consequently is ambiguous. Wirth v. Ehly, 93 Wis. 2d 433, 441, 287 N.W.2d 140 (1980); accord, State ex rel. Warrington v. Shawano Cty. Cir. Ct., 100 Wis. 2d 726, 303 N.W.2d 590, n. 1 (1981). When ambiguity exists, “this court may resort to extrinsic aids in determining legislative intent.” Wirth v. Ehly, supra, at 441-42; accord, Milwaukee County v. Proegler, 95 Wis. 2d 614, 625, 291 N.W.2d 608 (Ct. App. 1980).

The words following “intentionally” are “refuses,” “neglects” or “fails.” (Emphasis added.) The Random House Dictionary of the English Language, Unabridged Edition, relevant definitions of those words as verbs are:

“refuse— ... to express a determination not to (do something) ... to decline to submit to ... to decline acceptance, consent, or compliance. . .”
“neglect — to pay no attention ... to omit, through indifference or carelessness ... to fail to carry out or perform (order, duties, etc.) . . .”
“fail — to fall short of success or achievement in something expected, attempted, desired, or approved ...

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Bluebook (online)
314 N.W.2d 98, 105 Wis. 2d 261, 1982 Wisc. LEXIS 2490, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-v-stepniewski-wis-1982.