United States v. Banks

621 F. Supp. 602, 1985 U.S. Dist. LEXIS 13944
CourtDistrict Court, S.D. California
DecidedNovember 13, 1985
DocketCrim. 83-1041-JLI
StatusPublished
Cited by1 cases

This text of 621 F. Supp. 602 (United States v. Banks) is published on Counsel Stack Legal Research, covering District Court, S.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Banks, 621 F. Supp. 602, 1985 U.S. Dist. LEXIS 13944 (S.D. Cal. 1985).

Opinion

MEMORANDUM DECISION

GORDON THOMPSON, Jr., Chief Judge.

This case requires the Court to determine the scope of a surety’s contractual obligations under a bail bond contract, a contract interpretation issue of great interest to criminal defendants, sureties, and the government.

I

Mike Tellez Banks was arrested and taken into custody on November 4, 1983 as he crossed the International Border at San Ysidro with heroin concealed in his 1972 Oldsmobile. At his initial appearance on November 7, 1983, Magistrate Curtis McKee set a cash or corporate surety bond in the amount of $100,000. On November 10, 1983, a five-count indictment was returned against defendant Banks, charging him with importation of heroin, possession of heroin with intent to distribute, illegal importation of monetary instruments, false statements, and interstate and foreign travel in aid of racketeering enterprises. Defendant was afforded a bail review on November 16, 1983 at which Magistrate McKee affirmed the $100,000 bond. A second bail review hearing was held on December 13, 1983 and the bond was re-affirmed by Magistrate McKee. On December 21, 1983, District Judge J. Lawrence Irving held another bail review hearing, •affirming the written findings of Magistrate McKee and the bond set at $100,000.

On January 18, 1984, upon the posting of the $100,000 bail bond by the surety Dependable Insurance Company, Inc. [Dependable], defendant Mike Tellez Banks was released from custody. The defendant made all his required appearances before the district court up to and including his stipulated facts court trial on April 5, 1984. Judge Irving found Mr. Banks guilty on all counts. Sentencing was set for May 25, 1984, and later continued until June 11.

Defendant appeared before Judge Irving for sentencing on June 11, 1984. At the conclusion of the sentencing, defense counsel asked the Court for a short extension (until the end of the day) to “file the notice of appeal and be able to do all the necessary paperwork downstairs to present and file this bond pending the appeal of this matter.” Judge Irving ordered defendant to appear for a status hearing on August 27, denied the government’s request to raise the bond pending appeal to $200,000, but did not explicitly exonerate the appearance bond executed by Dependable. Nor did he explicitly continue the appearance bond posted by Dependable as an appeal bond. 1

*604 Events subsequent to the sentencing are somewhat unclear. What is clear, however, is that defendant Banks never obtained a separate appeals bond. Yet Mr. Banks did appear for status conferences before Judge Irving on August 27, 1984 and October 29, 1984. The Ninth Circuit later affirmed Banks’ conviction. 2 Notice of the hearing to file the certified copy of the Ninth Circuit’s affirmance was sent to defense counsel on April 18, 1985.

The date for filing the Ninth Circuit’s decision in the district court was set for May 13, 1985. That date arrived; unfortunately defendant didn’t. The government moved for forfeiture of the “appeal bond in this case” and the issuance of a bench warrant. Judge Irving granted both motions. 3

*605 On July 12, 1985, the government moved for a default judgment on the forfeiture of the bond. Dependable responded by moving to set aside the forfeiture and exonerate the bond.

II

Dependable claims that the bond should not be forfeited because it was no longer in effect when defendant Banks failed to surrender into custody after his conviction was affirmed. Dependable’s argument is that the language of the bond only provided for Banks’ appearances before the trial court prior to appeal of the conviction. The government contends that the bond remained in effect throughout the appellate process.

The central task thus presented in this case is to determine the extent of obligation undertaken by the surety Dependable, a matter of contract interpretation. Collateral to this question is the effect, if any, of Judge Irving’s rulings regarding the bail bond at the June 11, 1984 sentencing.

To put this issue into the proper contextual framework, it is necessary to reiterate the basic principles of bail bonds. A bail bond is a contract between the government and the defendant and the surety. . United States v. Lujan, 589 F.2d 436, 438 (9th Cir.1978); United States v. Plechner, 577 F.2d 596, 598 (9th Cir.1978); accord United States v. Martinez, 613 F.2d 473, 476 (3rd Cir.1980). As with any other contract, the liabilities of the parties under the contract depend upon the intention of the parties as evidenced by the wording of the contract. United States v. Morales, 91 F.R.D. 169, 171 (D.P.R.1981).

The language of the bond contract is to be strictly construed in accordance with its terms. 4 United States v. Lujan, *606 589 F.2d 436, 438 (9th Cir.1978). The bond at issue here, labelled “Bond for Preliminary Appearance,” contained the following pertinent language:

The conditions of this bond are that ... the said defendant is to appear in the United States District Court for the Southern District of California in accordance with all orders and directions of the Court relating to appearance of the said defendant before said Court, or in any other United States District Court to which the case may be removed or transferred.
... If the defendant complies with all of the conditions of this bond and appears as ordered, then this bond is to be void, but if the defendant fails to perform these conditions, payment for the amount of the bond shall be due forthwith.

The government argues that the language providing that the defendant must appear in accordance with “all orders” evidences the parties’ intentions that the surety was to be responsible for defendant’s appearance in the district court after appeal. This Court believes, however, that in this particular case the parties’ intentions are better understood by examining what language, usually found in other bail bonds, was not included in this contract, and by examining the parties’ actions as evidence of their intentions.

Many courts have examined similar language from other bail bonds in an effort to determine the parties’ intentions as to the extent of the surety’s liability. 5 Although interpreting virtually identical language, the courts’ rulings have been diverse. 6 At least three other cases,

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Bluebook (online)
621 F. Supp. 602, 1985 U.S. Dist. LEXIS 13944, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-banks-casd-1985.