United States v. Bussey

452 F. Supp. 891, 1978 U.S. Dist. LEXIS 17012
CourtDistrict Court, M.D. Louisiana
DecidedJune 23, 1978
DocketCrim. No. M2-170
StatusPublished

This text of 452 F. Supp. 891 (United States v. Bussey) is published on Counsel Stack Legal Research, covering District Court, M.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Bussey, 452 F. Supp. 891, 1978 U.S. Dist. LEXIS 17012 (M.D. La. 1978).

Opinion

E. GORDON WEST, District Judge:

On March 25, 1977, a judgment was entered in this case ordering Capitol Indemnity Corporation (sometimes referred to in the record, and also in quotes in this opinion as Capital Indemnity Company), to forfeit a $15,000 appearance bond which it had allegedly posted with the Clerk of this Court on behalf of the defendant, William Bayless Bussey.

Capitol now moves the Court to vacate that Judgment of Forfeiture. Capitol argues that (1) when the bond was executed by Mr. Hess Curry, Jr., he was not acting for Capitol pursuant to a valid power of attorney, but instead executed the bond in his own individual capacity, and (2) Capitol was never properly served with the “Motion to Test the Surety” and has never been properly brought before this Court. It contends that it had no legal notice of these proceedings until after the Judgment of Forfeiture had been entered.

For reasons hereinafter stated, the Court concludes that the judgment of forfeiture directed against Capitol Indemnity Corporation should be and will be rescinded and set aside.

FINDINGS OF FACT

1.

On April 23, 1973, the defendant, William Bayless Bussey, was arrested and charged with illegal possession of an unregistered firearm. Upon his appearance before the United States Magistrate on that day, his bond was set at $15,000.

2.

On April 25, 1973, an appearance bond in the amount of $15,000 was executed and filed on behalf of William Bayless Bussey. This bond named the surety as “Hess Curry, Jr.,” and gave his address as P.O. Box 950, Alexandria, Louisiana. The bond was signed and acknowledged by the United States Magistrate, and no where in the bond is there any mention of any kind of Capitol Indemnity Corporation. Even though there was a Capitol Indemnity Corporation Power of Attorney form filed with the bond, Curry did not execute the bond as “Agent,” but instead signed it in his individual name only.

3.

The Capitol Indemnity Corporation Power of Attorney is a printed form which originally had blank spaces to be filled in. Under “Power Amount” is typed the figures “$25,000.00.” The form then proceeds to proclaim that Capitol constitutes and appoints -, its true and lawful attorney-in-fact, etc. In that blank is written, in ink, the name “Hess Curry, Jr.,” The handwriting appears to be that of Mr. Curry when compared with his signature on the bond. The Power of Attorney then proceeds to say that the attorney-in-fact may execute, “in its name, place and stead,” as surety, “a bail bond only * * * on behalf of--” This blank was filled in by writing therein the name “William Bussey.” The document then says that it is “To be given to-” and in that blank is written, in ink, “Middle District U.S. Court.”

4.

The Power of Attorney form states that it was signed by its corporate president on [893]*893January 30, 1973, and then in large red letters across the face of the document are the words: “THIS POWER VOID IF NOT USED BY__” The blank is filled in in large black letters and figures saying “APR. 1-1973.”

5.

While there is nothing in this Power of Attorney to show what date it was actually used, we must conclude from the record as a whole that it was used after the voiding date April 1, 1973, because it was filed in connection with a bond dated April 25,1973, and William Bayless Bussey, the person on whose behalf the bond was issued, was not arrested until April 23,1973, or twenty-two days after the Power of Attorney had expired. The crime for which Mr. Bussey was arrested was not even allegedly committed until April 20, 1973.

6.

It therefore naturally follows that Mr. Hess Curry, Jr., attempted to use this Power of Attorney to bind Capitol Indemnity Corporation after it had, on its face, expired, and without any evidence of consent by Capitol Indemnity Corporation. There is nothing in the record to indicate that Capitol at any time acquiesced in, approved, or even had knowledge of the use by Mr. Curry of this expired Power of Attorney until after the Court had ordered a forfeiture of the bond.

7.

In view of the obvious expiration date appearing in bold letters across the face of the Power of Attorney, it cannot even be argued that Mr. Curry had “apparent authority” to act, in this case, as agent for Capitol Indemnity Corporation.

8.

After being bonded out, the whereabouts of William Bayless Bussey apparently became unknown. According to the record, nothing else transpired until December 16, 1976, on which date the Government filed a “Motion to Test Surety.”

9.

At the Government’s request, an order issued out of this Court on December 17, 1976 ordering William Bayless Bussey to appear before the Court on January 7,1977, and further ordering “that Capital Indemnity Company through its agent Hess Curry of Alexandria, Louisiana, produce the said William Bayless Bussey — or suffer penalty of forfeiture to the United States of the bond posted by Capital Indemnity Company insuring Bussey’s appearance.” This order was served, on December 21, 1976, on Dennis Whalen, Esq., who was shown in the record as attorney for William Bussey. The United States Marshal’s Office was unable to locate Mr. Bussey and hence no service was ever made on him. Personal service was made on Hess Curry, Jr. at the office of Curry Bonding Company in Alexandria, Louisiana, on December 21, 1976. No service was ever made on Capitol Indemnity Corporation except through Hess Curry, Jr., whom the Government contends was Capitol’s agent.

10.

On October 16,1972, a Power of Attorney appointing Gustave F. Treme, of New Orleans, Louisiana, as agent of Capitol Indemnity Corporation for service of process was filed with the Clerk of this Court. On the same day, Stephen J. Gennuso was appointed agent of Capitol Indemnity Corporation for service of process in the Western District of Louisiana. No other agents for service of process in Louisiana were ever appointed by Capitol Indemnity Corporation, and particularly, Hess Curry, Jr. was never made an agent of Capitol Indemnity Corporation for service of process.

11.

On January 7, 1977, a hearing was held on the Government’s “Motion to Test Surety.” At this open court hearing, the Government was represented by an Assistant United States Attorney, and an appearance was made by Dennis Whalen, Esq., who appeared on behalf of the absent William Bayless Bussey, and who informed the Court that the whereabouts of Mr. Bussey [894]*894were unknown. Also testifying at this hearing was Mr. Hess Curry, Jr., who continued to represent himself as an agent of Capitol Indemnity Corporation.

12.

At the conclusion of the hearing, the Court granted the Government’s motion for a preliminary default and gave Capitol Indemnity Corporation thirty days in which to produce Mr. Bussey. This order was issued under the mistaken belief that Mr. Curry was, in fact, a duly authorized agent of Capitol Indemnity Corporation.

13.

On March 25, 1977, pursuant to the Government’s motion, and in view of the fact that Capitol had failed to produce Mr. Bussey, the Court ordered forfeiture of the $15,000 bond allegedly posted by Capitol on Bussey’s behalf.

14.

On March 30, 1977, the United States Attorney for the Middle District of Louisiana directed a letter to Mr.

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452 F. Supp. 891, 1978 U.S. Dist. LEXIS 17012, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-bussey-lamd-1978.