United States v. Donald Eugene Ryans D/B/A Ryans Moving & Storage and Westside Movers

903 F.2d 731, 1990 U.S. App. LEXIS 7443, 1990 WL 58119
CourtCourt of Appeals for the Tenth Circuit
DecidedMay 8, 1990
Docket89-6096
StatusPublished
Cited by90 cases

This text of 903 F.2d 731 (United States v. Donald Eugene Ryans D/B/A Ryans Moving & Storage and Westside Movers) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Donald Eugene Ryans D/B/A Ryans Moving & Storage and Westside Movers, 903 F.2d 731, 1990 U.S. App. LEXIS 7443, 1990 WL 58119 (10th Cir. 1990).

Opinion

HOLLOWAY, Chief Judge.

The government appeals from a pretrial order of the district court granting the defendant-appellee’s motion to suppress evidence as to two tape recordings in this criminal proceeding. This court has jurisdiction of the appeal pursuant to 18 U.S.C. § 3731.

I

A.

Defendant-appellee Donald Eugene Ryans (“Ryans”) was charged with conspiring, together with unnamed co-conspirators, to restrain and suppress competition in the provision of moving services from Fort Sill, Oklahoma, in unreasonable restraint of interstate trade and commerce, in violation of Section 1 of the Sherman Act. Ryans moved to suppress three tape recordings of conversations between himself and Mr. Hughen, an immunized government informant, on the ground, inter alia, that the conversations were recorded in violation of Disciplinary Rule 7-104(A)(l) of the Code of Professional Responsibility [hereinafter DR 7-104(A)(l), the “disciplinary rule”, or the “rule”]. Following an evidentiary hearing, the district court suppressed two of the tapes on the ground that the disciplinary rule had been violated. This appeal followed and this court stayed *733 the trial pending the appeal. 1 We conclude that the district court erred in its application of the disciplinary rule in the circumstances of this case and improperly suppressed the recordings, and reverse.

In 1985 the Antitrust Division of the Department of Justice began a nationwide investigation of national moving carriers and agents who were engaged in the transport of household goods for military personnel. In March or April of 1986, attorneys in the Antitrust Division’s Dallas, Texas, office instructed Special Agent Granville Long of the F.B.I. in Lawton, Oklahoma, to begin an investigation of movers at Fort Sill, Oklahoma. Shortly thereafter one of the suspected conspirators, Kenneth Hughen, then president of the local movers’ association, agreed to cooperate with the government in exchange for immunity from prosecution. (Long Tr. at 19; Hughen Tr. at 68-70.)

Hughen agreed to record telephone conversations with numerous investigation “targets,” including Ryans. (Long Tr. at 21.) Government prosecutors instructed Hughen to call members of the movers’ association and engage in conversation concerning the alleged agreements and rate setting practices, and to record his conversations. (Hughen Tr. at 82-83.) The prosecutors acted primarily through Agent Long, although the record shows that on at least one occasion the government attorneys met directly with Hughen. (Hughen Tr. at 68-70.) Although Hughen had already agreed to cooperate with the government, the prosecutors issued a grand jury subpoena to Hughen, much like those issued to each of the investigation targets, to conceal his newfound loyalty. This stage of the investigation lasted approximately three months, during which time Hughen recorded some conversations. Three of these were telephone conversations with Ryans.

The first telephone call to Ryans occurred on May 19, 1986, five days after Ryans had been served with a federal grand jury subpoena duces tecum. A transcript of the conversation reveals that the two men discussed, among other things, the problems associated with complying with the subpoenas and the need for legal representation. 2 Hughen delivered the tape of the May 19 interview to Agent Long on May 29, 1986. (Long Tr. at 31/ Hughen Tr. at 99.)

The second tape recording was made on June 5, 1986. (Hughen Tr. at 100-101.) A transcript of this conversation also reveals that Ryans’ legal representation was discussed. Ryans stated that he had met with and had obtained advice from his lawyer concerning the subject of the investigation. *734 Indeed, in response to some prompting by Hughen, Ryans disclosed the substance of that advice. See Tr.Conv. at 26:8-29:18; 33:22-34:13. The June 5 tape was delivered to agent Long on June 12, 1986. (Hu-ghen Tr. at 108.)

The third taped conversation between Hughen and the defendant occurred on June 18, 1986, six days after Long received the second tape and one day after Ryans delivered documents to Agent Long in compliance with the grand jury subpoena. (Long Tr. at 47-48.) A transcript of this conversation reveals that defendant Ryans reported to Mr. Hughen about his meeting with Agent Long the previous day and again discussed advice that he had received from counsel. Tr. Conv. at 42:18-21; 55:13-18; 61:24-63:4; 64:6-22.

Mr. Hughen’s inquiries into the substance of Ryans’ attorney-client communications were, according to agent Long, contrary to the instructions that he had given to Hughen sometime during the investigation. 3 (Long Tr. at 40-42.) Agent Long testified that sometime in May 1986 he advised one or more of the government prosecutors of his concerns regarding Mr. Hughen’s performance as an informant. Id. The district court found that the government attorneys were aware that the recordings were being made and were informed of their contents. Order at 5.

B.

Ryans was charged on January 19, 1989, in a one-count indictment with alleged price-fixing in violation of the Sherman Act, 15 U.S.C. § 1. Prior to trial Ryans moved to suppress introduction of the tapes on the ground that the conversations were recorded in violation of DR 7-104(A)(1). The district court denied the motion to suppress as to the first of the recordings, but granted Ryans’ motion as to the second and third recordings.

The court found that “[a]t the time these [second and third] tapes were made, it was clear that defendant Ryans had retained counsel regarding the investigation for which the recordings were made”, id. at 9, and that the government prosecutors knew, either directly or indirectly through Agent Long, that Ryans was represented by counsel. Id. The court further found that Mr. Hughen was acting under the direct control and supervision of Agent Long and that he “participated actively in the conversations and deliberately elicited information from the defendant in the absence of counsel regarding the alleged conspiracy and communications between the defendant and his counsel_” Order at 8. The court concluded that the government attorneys investigating the case had breached their ethical obligations under the disciplinary rule.

The court then considered the available remedies, ranging from simple admonishment of the attorneys involved to dismissal of the indictment. The court thought that United States v. Thomas, 474 F.2d 110 (10th Cir.), cert. denied, 412 U.S. 932, 93 S.Ct. 2758, 37 L.Ed.2d 160 (1973), might be controlling and accordingly imposed the intermediate remedy of suppression. (Order at 9.) The government appeals.

II

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903 F.2d 731, 1990 U.S. App. LEXIS 7443, 1990 WL 58119, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-donald-eugene-ryans-dba-ryans-moving-storage-and-ca10-1990.