United States v. Honorable Jim R. Carrigan, United States v. Daniel G. Landry, United States v. Otis Elevator Company and Daniel G. Landry

778 F.2d 1454, 1985 U.S. App. LEXIS 25458
CourtCourt of Appeals for the Tenth Circuit
DecidedDecember 3, 1985
Docket85-1530, 85-1536 and 85-1541
StatusPublished
Cited by58 cases

This text of 778 F.2d 1454 (United States v. Honorable Jim R. Carrigan, United States v. Daniel G. Landry, United States v. Otis Elevator Company and Daniel G. Landry) 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. Honorable Jim R. Carrigan, United States v. Daniel G. Landry, United States v. Otis Elevator Company and Daniel G. Landry, 778 F.2d 1454, 1985 U.S. App. LEXIS 25458 (10th Cir. 1985).

Opinion

SEYMOUR, Circuit Judge.

The United States (the Government) and Daniel G. Landry appeal from an order of the district court rejecting what the court described as a proposed plea agreement between the Government and a corporate defendant, Otis Elevator Company (“Otis”), and what the Government characterizes as a motion to dismiss defendant Landry. The Government also seeks a writ of mandamus directing the district court to accept the proposed disposition of the case against Landry. The Government claims that the district court exceeded its authority when it rejected the agreement. We disagree and affirm.

I.

On November 24, 1984 a federal grand jury in Colorado returned an indictment against Otis and Landry, an Otis employee. The indictment 1 charged Otis and Landry each with three counts of submitting false claims to the United States government in violation of 18 U.S.C. § 287 (1982). 2 On February 15, 1985 the Government and the two defendants submitted a proposed plea agreement to the district court. The agreement provided that Otis would plead guilty to all three counts and the Government would dismiss the three counts against Landry. 3 The plea agreement also incorpo *1457 rated three settlement agreements between Otis and the United States Departments of Justice, Defense, and Transportation. Copies of these agreements were attached to the plea bargain agreement. The proposed plea bargain agreement was signed by Assistant United States Attorney Thomas O’Rourke, Landry, Landry’s attorney James Nesland, and Otis’ attorney.

The agreement with the Justice Department provided for the settlement of a civil action based on the false claims that formed the basis of the indictment against Otis and Landry. In exchange for a release from a potential civil claim of $629,-000, Otis agreed to pay $900,000 to the United States. The agreements with the Departments of Defense and Transportation bar Otis’ Denver division from government contracts with the two agencies for three years, isolate Landry’s immediate supervisor from government work, and bar Landry from ever working for Otis or its affiliates. The agreement with the Defense Department also requires Otis to implement specific measures designed to prevent future occurrences of the alleged fraudulent practices underlying the indictment. These measures included a “cost principles awareness program” for Otis’ employees and use of independent accountants to review the accounting system of Otis’ Denver division.

As part of the proposed plea bargain materials submitted on February 15, the Government included a motion to dismiss the charges against Landry, as required by the plea bargain. 4 The motion to dismiss was presented to the district court along with all of the plea bargain and settlement agreement documents.

On March 22, 1985 the district court held a hearing on the proposed plea agreement. Present at the hearing were Assistant United States Attorney O’Rourke, Landry, and *1458 Nesland, who represented both Otis and Landry. The district court expressed concern that, under the terms of the proposed agreement, no individuals were to be prosecuted for the fraud against the Government, which totaled $629,000. The court stated:

“In my view, this proposed plea agreement reflects on the impartiality of the whole justice system. And I have trouble feeling that I can maintain the integrity of this court and yet go along with all aspects of this plea agreement.
“And the reason is that the United States is charging here, and apparently there is an agreement, at least by the corporation, that somebody defrauded the United States of $629,000 through contract fraud. As I read this proposal, every individual concerned — connected with this fraud will walk free without any prosecution. It’s familiar law to all of us, of course, that a corporation can only act through its agent or its employees, officers or directors. And what concerns me is what message we are sending to the public and to the taxpayers ____
“[I]f somebody really did steal $629,-000 of government money through fraud, as charged, it’s a mockery to me to come in here and ask that I accept a plea agreement that accepts the minimum of a $30,000 fine for that dimension of an offense.
“So I'm troubled by some unanswered questions here. Was any kind of an arrangement made between the corporation and Landry? There is nothing that speaks to that question at all. Did Mr. Landry get retirement and severance pay to walk away from this? Did he get any kind of punishment? The prosecutor’s statement says that he’s the one that’s responsible.
“If he isn’t, then he should — the case against him should be dismissed. But somebody ought to say that. It seems inconsistent to me to say in the prosecutor’s statement that he’s the one that did it and then say we are not going to prosecute him when there is this much involved. What do people in the public think?
U
“So my questions are for you. I think we have got to settle them before I am going to accept this plea agreement or any other plea agreement in this case.
((
“So it’s my order that the plea agreement tendered in its present form is rejected under Rule 11(e). The case is set for trial April 23, 1985. The parties are accorded one week to confer and to see if they can work out a plea agreement that is acceptable to the Court. But I’m not engaging in any plea bargaining, never have and never will, but I think you are entitled to some guidance.
“It seems to me minimally a fair plea agreement ought to involve some accountability of some guilty individual, not just a corporation, number one, some form of accountability. Number two, there ought to be some accountability to the people that own this corporation. Somebody ought to have an obligation to make some report to the stockholders saying what was done here and who did it. It seems to me that’s a fundamental responsibility that's involved as far as the people that really own this corporation.
“... If you think you have got something worked out, I’ll be available to confer, as long as both sides, all parties, are represented by counsel, and to let you know whether what you have worked out would be acceptable.
“But in its present form the plea agreement is rejected.”

Rec., vol. IV, at 5-8.

Attempting to respond to the court’s ruling, O’Rourke offered several reasons for the proposed plea agreement. He argued that the Government had already received $900,000 from Otis in the civil settlement, which O’Rourke termed “ample restitution.” Id. at 9. He also noted that a trial of Otis would result in “a battle of experts on accounting issues.” Id.

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Bluebook (online)
778 F.2d 1454, 1985 U.S. App. LEXIS 25458, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-honorable-jim-r-carrigan-united-states-v-daniel-g-ca10-1985.