United States v. Leonard I. Payne

437 F.3d 540, 69 Fed. R. Serv. 549, 2006 U.S. App. LEXIS 3360, 2006 WL 318612
CourtCourt of Appeals for the Sixth Circuit
DecidedFebruary 13, 2006
Docket05-1280
StatusPublished
Cited by31 cases

This text of 437 F.3d 540 (United States v. Leonard I. Payne) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth 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. Leonard I. Payne, 437 F.3d 540, 69 Fed. R. Serv. 549, 2006 U.S. App. LEXIS 3360, 2006 WL 318612 (6th Cir. 2006).

Opinion

OPINION

MOORE, Circuit Judge.

Defendant-Appellant Leonard I. Payne (“Payne”) appeals his conviction for passing counterfeit obligations, in violation of 18 U.S.C. § 472. Payne argues that the district court erred in admitting out-of-court statements under the coconspirator-statement exclusion from the hearsay definition, because (1) Payne was not a member of the conspiracy and (2) certain statements were not made in furtherance of the conspiracy. Payne also asserts that the district court improperly limited the scope of his recross-examination of a witness.

Because the statements were admissible non-hearsay and the district court did not unconstitutionally limit the scope of recross-examination, we AFFIRM Payne’s conviction.

I. BACKGROUND

On Monday, April 24, 2000, Katherine Wells (“Wells”), the asset-protection manager of a J.L. Hudson Department Store (“Hudson’s”) in Ann Arbor, Michigan, discovered $4,000 in counterfeit currency in the weekend’s cash intake. The currency was of poor quality and was readily identifiable as counterfeit. Based on the store’s video-surveillance system, Wells was able to determine that the counterfeit currency had been accepted at the men’s suit department register during a sale of approximately $3,972 on the evening of Saturday, April 22, 2000. Wells identified two salespeople — Payne and Louis Myers (“Myers”) — and four shoppers in the video recording of the area near that register at the time of the transaction. Both the video and a point-of-sale transaction report revealed that Payne processed the sale.

Myers observed the transaction and thought it unusual for two reasons. First, the customers selected a large amount of clothing in a short period of time while paying little attention to size or style. Second, Payne acted unusually during the transaction, showing no signs of the sales *543 manship that Myers had seen him employ in the past.

The events leading up to the passing of the counterfeit currency were filled in by Ollie Hall (“Hall”), a participant in the scheme. Earlier that day, Hall encountered an old friend, Fred McClure (“McClure”), at a gas station. When their conversation turned to whether Hall needed money and clothes, McClure mentioned that he had a “hookup” at the mall. Hall agreed to go to the mall with McClure, but first they went to Hall’s parents’ house. There, McClure and Hall were joined by two other men. McClure retrieved a bag from his car and emptied its contents, about $8,000 in counterfeit currency, on a table in the home. He explained that he typically used his “hookup” — a cashier at Hudson’s who turned out to be Payne — to obtain multiple items of clothing for the price of one, with the two then splitting the clothing. This time, however, McClure had plans to use the counterfeit currency. When Hall expressed doubts that anyone would accept the currency because it was obviously counterfeit, McClure reassured him that Payne would accept it. Indeed, while at the house, McClure called Payne and then told Hall that everything would proceed as planned.

About an hour later, McClure, Hall, and the two other men left the house to go to Hudson’s, with each carrying about $2,000 of the counterfeit currency. On the way, McClure had another telephone conversation with Payne. Once the four men arrived at Hudson’s, McClure told the others to select the clothing they wanted, which they proceeded to do. McClure broke away from the group to speak with Payne, after which McClure told Hall that everything was fíne, that everyone should choose what they wanted, and that he (McClure) had chosen the clothing that Payne wanted. Hall understood this last point to mean that McClure would deliver this clothing to Payne as payment for his role in the scheme. McClure “paid” for the clothing using the counterfeit currency that he and "Hall were carrying, after which the four men exited the store leaving Payne behind. Hall confirmed that the video introduced during Wells’s testimony depicted this transaction.

The group proceeded to a different Hudson’s branch, where McClure and Hall returned some of the clothing they had “purchased” in order to receive a cash refund. McClure gave some of these proceeds to Hall and the two other men. At some point afterward, Hall was present when McClure spoke with Payne by telephone. Upon the completion of the telephone conversation, McClure told Hall that Payne had asked for the clothing he had selected during the transaction. McClure was concerned that Payne might have talked to the police, and McClure resolved not to deliver the clothing for fear that the police might be waiting.

Payne was indicted for passing counterfeit obligations, in violation of 18 U.S.C. § 472. Neither Payne nor McClure testified at trial, but théir statements were introduced via Hall’s in-court testimony. Payne objected to the statements as hearsay, but the district court ruled that, as coconspirator statements, they were admissible non-hearsay. Payne also objected to a limitation on the scope of his recross-examination of Hall: the district court forbade questions regarding the type of phone McClure used to call Payne, ruling that the topic had already been explored during cross-examination and redirect examination. A jury convicted Payne, and he was sentenced to one month in prison and three years of supervised release. Payne now appeals.

*544 II. ANALYSIS

A. Hearsay

Subject to certain exceptions, hearsay is inadmissible. FED. R. EVID. 802. We begin by noting that if the out-of-court statements introduced at Payne’s trial had not been offered to prove the truth of the matter asserted, there would be no hearsay problem. FED. R. EVID. 801(c) (defining hearsay as “a statement, other than one made by the declarant while testifying at the trial or hearing, offered in evidence to prove the truth of the matter asserted”). But the government does not make this argument, and it in fact conceded at oral argument that the statements were offered to prove the truth of the matter asserted. Thus, we proceed with the hearsay inquiry.

1. Standard of Review

Payne argues that the district court erroneously admitted the out-of-court statements included in Hall’s testimony. “ ‘In reviewing a trial court’s evidentiary determinations, this court reviews de novo the court’s conclusions of law, e.g., the decision that certain evidence constitutes hearsay, and reviews for clear error the court’s factual determinations that underpin its legal conclusions.’ ” United States v. McDaniel, 398 F.3d 540, 544 (6th Cir.2005) (quoting United States v. Reed, 167 F.3d 984, 987 (6th Cir.), cert. denied, 528 U.S. 897, 120 S.Ct. 229, 145 L.Ed.2d 192 (1999)). “This standard is consistent with the Supreme Court’s admonition in General Electric Co. v. Joiner, 522 U.S. 136, 142, 118 S.Ct.

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Bluebook (online)
437 F.3d 540, 69 Fed. R. Serv. 549, 2006 U.S. App. LEXIS 3360, 2006 WL 318612, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-leonard-i-payne-ca6-2006.