State v. Ward

372 P.3d 417, 52 Kan. App. 2d 663, 2016 Kan. App. LEXIS 27
Court of Appeals of Kansas·Decided April 22, 2016·No. 111640·Published·Cited by 1 cases

Opinion

Powell, J.:

Christopher R. Ward appeals his convictions of theft by deception and making false information by making four arguments on appeal: (1) The State failed to present sufficient evidence to support his crimes of conviction; (2) his constitutional right to a jury trial was infringed when the judge orally instructed the jury that it “must” find the defendant guilty if it had no reasonable doubt as to the truth of any of the State s claims; (3) he was denied his right to a fair trial when the prosecution mentioned an adult store and the district court failed to mitigate the resulting prejudice; and (4) cumulative errors deprived him of a fair trial.

After reviewing the record, we find there was insufficient evidence to convict Ward of theft by deception as the named victims were not induced by Ward’s fraud and for making false information because Ward altered a check written by another. We therefore reverse his convictions.

Factual and Procedural Background

In April 2010, Andrew Rhodes and Ward formed a construction company partnership called All Construction Guaranteed Roofing & Restoration (ACG) in which they operated as general contractors. In this role, Rhodes and Ward purchased and supplied the materials and hired subcontractors to complete the work. Once a project was concluded, ACG paid the invoices for materials and paid the subcontractors for their work.

*665 Rhodes and Ward lacked a written business agreement and orally agreed to evenly split the profits of their enterprise. They incorporated ACG and opened a business checking account to which they were both authorized signers. Rhodes and Ward did not pay themselves a regular salary but, rather, would periodically review the account and determine the amount of profit that had been generated by a given job before splitting that profit. Additionally, when one partner required funds for a particular personal expense, a check for the expense would be drafted from the business account and the other partner would also receive a check from the account in the same amount.

From 2010 to 2011, ACG was profitable. However, by 2012, due to disorganized accounting practices and less opportunities to conduct business, ACG was near bankruptcy. Rhodes and Ward, in an effort to keep ACG in business, contracted to perform a large repair and painting job on Barrington Park Estates—a large complex of 4- and 8-plexes. ACG was to be paid for its work in installments; however, ACGs subcontractors insisted on payment immediately upon completing their work. As a result, ACG did not have sufficient funds on hand to complete the contract.

This prompted Ward to suggest a meeting with Orín Sweeney, a business acquaintance of his and owner of Night & Day Remodeling, to request a capital investment. Rhodes, although unacquainted with Sweeney, agreed, and Ward met with Sweeney in May 2012. Following the meeting, Ward informed Rhodes that Sweeney was willing to partner with ACG on the Barrington Park Estates contract by offering an infusion of money, so long as ACG was willing to pay back the loaned money plus remit to Sweeney $15,000 of the contracts profit. Rhodes agreed.

Sweeney testified that when ACG ran into cash-flow problems, Ward approached him in order to work out a mutually beneficial agreement whereby Sweeney would provide the money to allow ACG to complete its Barrington Park Estates project. After assessing the projects profitability, Sweeney decided to participate. On May 21,2012, he and Ward negotiated an agreement and attempted to memorialize it in a writing signed by both men. Rhodes was neither present for the contract negotiation, nor did he sign the *666 contract. The written agreement contained multiple iterations of conflicting terms, some typewritten and others handwritten. The final iteration of contract terms represented that Sweeney would provide $20,000 to fund the remainder of the Barrington Park Estates project. ACG would then receive the next $17,000 in profits (presumably in order to fund the remainder of the project). In exchange for the $20,000, the contract provided that Sweeney would recoup his original investment plus $15,000 from the projects profits after ACG received its $17,000 from the profits. Any surplus profit thereafter would belong to ACG.

Thus, Sweeney wrote a check for $20,000 to ACG. According to Sweeneys testimony, Ward requested that Sweeney make the check out to ACG “or Chris Ward.” However, Sweeney declined to add Ward’s name to the checks payee line because his agreement was with ACG, not Ward as an individual.

In June 2012, after failing to receive payments as promised, Sweeney contacted Rhodes to garner ACG’s performance of the contract terms. Ward was out of town at the time. During their conversation, Sweeney disclosed the $20,000 check he had paid to ACG, but Rhodes discovered the check had never been deposited into ACG’s business account. When Rhodes contacted Ward by telephone to discuss the matter, Ward said he was busy and could not help resolve the discrepancy. Rhodes and Sweeney decided to file police reports.

Upon closer review of his records, Sweeney discovered that the $20,000 check he had written on his Bank of America business account with “ACG Restoration” on the payee fine and provided to Ward on May 22, 2012, had been altered to include “or Chris Ward” on the payee line. Further, the check had been deposited into Ward’s personal account at First National Bank instead of ACG’s business account.

Rhodes did not speak to Ward again until November 22, 2012. During their conversation over the telephone, Ward apologized to Rhodes for “everything.” Meanwhile, Rhodes and Sweeney came to a new agreement that allowed ACG to conclude die Barrington Park Estates project. Sweeney was eventually able to recover the *667 original $20,000 when Sweeneys bank—Bank of America—returned the funds to Sweeneys account following a fraud affidavit filed by Sweeney.

At trial, Ward’s interpretation of the contract between Sweeney and ACG diverged from Rhode’s and Sweeneys versions. Ward testified that he and Sweeney originally agreed that Sweeney would provide a total of $45,000 in assistance for the Barrington Park Estates project: $22,500 of which Ward would receive immediately and a subsequent $22,500 that would eventually go to Rhodes. After further negotiation, Ward was to immediately receive $20,000 from Sweeney, Rhodes was to receive a total of $20,000 from the profits of the Barrington Park Estates project, and Sweeney was then to receive the remainder of the profits from the Barrington Park Estates project. Thus, according to Ward, he did not inappropriately deposit the money. When asked what he did with the $20,000 he obtained from Sweeney, Ward testified that he took it to a casino to gamble in an attempt to keep ACG in business. He also admitted that he added “or Chris Ward” to the payee line of the check in order to deposit the check into his personal account at First National Bank, an act he deemed “endorsing” the check.

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State v. Ward, 372 P.3d 417, 52 Kan. App. 2d 663, 2016 Kan. App. LEXIS 27 (kanctapp 2016).

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