United States v. Swanson

9 C.M.A. 711, 9 USCMA 711, 26 C.M.R. 491, 1958 CMA LEXIS 437, 1958 WL 3409
CourtUnited States Court of Military Appeals
DecidedOctober 3, 1958
DocketNo. 11,381
StatusPublished
Cited by16 cases

This text of 9 C.M.A. 711 (United States v. Swanson) is published on Counsel Stack Legal Research, covering United States Court of Military Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Swanson, 9 C.M.A. 711, 9 USCMA 711, 26 C.M.R. 491, 1958 CMA LEXIS 437, 1958 WL 3409 (cma 1958).

Opinions

[714]*714Opinion of the Court

Robert E. Quinn, Chief Judge:

The accused was brought to trial before a general court-martial on twenty-one charges of issuing checks with intent to deceive and thereafter dishonorably failing to maintain sufficient funds for payment, and on three charges of dishonorable failure to pay debts. At the trial he was acquitted of several of the former charges, others were set aside by the convening authority, and the remaining charges were disapproved by the board of review. However, the board of review affirmed the findings of guilty of the three bad debt charges and the sentence, which is dismissal and forfeiture of all pay and allowances. The accused appealed to this Court on a number of assignments of error.

Our first problem concerns the correctness of the ruling by the law officer denying a defense motion to dismiss the bad debt specification on the alternate ground of lack of jurisdiction or res judicata. The critical fact relied upon by the defense in support of the motion is that the accused was discharged as a bankrupt on September 13, 1957, a week before the trial.

An officer of the armed forces, like other natural persons, can file a voluntary petition in bankruptCy. 11 USC § 22; Audubon v Shufeldt, 181 US 575, 45 L ed 1009, 21 S Ct 735. There is some early authority in military law which seems to indicate that despite a discharge in bankruptcy an officer has a moral obligation to pay which may provide the basis for a prosecution for dishonorable failure to pay debts to the discredit of the service. Dig Op, JAG, 1912-1930, § 414, page 199; United States v Upton, 7 BR 241, 262. The board of review below appears to have relied partly upon this principle in affirming the law officer’s ruling. Whether, under these circumstances, a moral obligation to pay can support a criminal prosecution under the Uniform Code when there is, in fact, no legal obligation to pay is indeed questionable. United States v Lenton, 8 USCMA 690, 25 CMR 194; cf. Zabella v Pakel, 242 F2d 452 (CA 7th Cir) (1957) (noting that the moral obligation to pay is sufficient to support a new promise to pay after the discharge in bankruptcy). However, wé need not reach the point. It was referred to by trial counsel in the argument on the motion, but specifically disclaimed by him as the basis for prosecution. “[W]e are not resting,” he said, “on the dishonorably failing to pay a moral obligation existing after discharge but on dishonorably failing to pay certain debts prior to the Petition in Bankruptcy.” As a result, trial counsel continued, there were issues to be determined by the court-martial. In our opinion, the law officer’s ruling can be sustained on the ground relied upon by trial counsel.

With certain exceptions, a discharge in bankruptcy releases the bankrupt from legal liability for a civil debt. 11 USC § 35. It has no effect upon penalties which do not originate in a civil money obligation. Thus in Spalding v The State of New York, 4 How 21 (US 1846), the United States Supreme Court held that a fine imposed for a criminal contempt in violation of a court injunction is not a debt dischargeable in bankruptcy. It follows that a prosecution for an offense against the penal code committed before the signing of a petition in bankruptcy is not barred by discharge in bankruptcy, although part of the punishment for the offense includes the payment or forfeiture of money by the accused-bankrupt. To put it another way, a bankruptcy discharge wipes out the bankrupt’s civil liability for scheduled debts, but does not absolve him from liability for a crime already committed.

True, the basis for the offense charged here is a personal relationship between the creditor and the debtor. If the relationship is “satisfactory” at a particular time, there is no dishonor in the debtor’s failure to pay at that time. United States v Cummins, 9 USCMA 669, 26 CMR 449. Under the [715]*715circumstances, a discharge in bankruptcy, before a dishonorable failure to pay has occurred, can do away with the basis for a later charge of a violation of the Uniform Code. This possibility was recognized by the law officer in the hearing on the motion. He asked counsel if in their research they had “come across any explanation as to when the offense of dishonorable failure to pay a debt occurred.” Both he and trial counsel indicated the answer depended upon the facts in each case. That indeed is the correct view.

Looking to the facts of this ease, it is clear that the offenses were committed before the discharge jn bankruptcy. The charge sheet is dated June 6, 1957. Each specification specifically alleged that the dishonorable failure to pay occurred, respectively, “from 15 January 1957 to present,” “from 25 February 1957 to present,” and “from 15 December 1956 to present.” The petition in bankruptcy was not filed until July 17, and the discharge was not granted until September 1957. The crime, therefore, had already been committed. Commission of the offenses did not terminate the accused’s civil liability for the underlying debt. The bankruptcy, discharge could then operate to permit the accused to avoid legal responsibility for nonpayment, but it did not, and under the statutes could not, give him immunity from prosecution and punishment for the pre-existing violation of the penal law. Consequently, the bankruptcy decree did not adjudicate any fact in issue in this case which could operate as a bar to trial. By the same token, it did not affect the court-martial’s jurisdiction over the offense and over the person of the accused as one subject to military law. The law officer’s ruling denying the motion was correct.

A mere negligent failure to pay a debt does not constitute conduct to the discredit of the service, in violation of Article 134, Uniform Code of Military Justice, 10 USC 934. It must appear that the nonpayment is the result of “deceit, evasion, or false promises, or the like.” United States v Kirksey, 6 USCMA 556, 20 CMR 272. The accused contends the evidence does not show any such culpable conduct on his part, and is, therefore, insufficient to support the findings of guilty. The core of the accused’s contention is that he was just not able to pay, a condition which he attributed largely to his wife’s personal extravagances. He testified that as early as January 1957, he told his wife they “would have to cut down our expenses.” This contention presents a contradiction in approach.

At the trial, the accused took the stand to testify only in regard to the check specifications. The law officer cautioned the court members that they, trial counsel, and he could not cross-examine the accused on the debt charges because of the announced limitation on his testimony. During trial counsel’s cross-examination of the accused, the law officer on his own initiative ruled out a question because it seemed to touch upon the debt charges. See Manual for Courts-Martial, United States, 1951, paragraph 149b (1); United States v Kelly, 7 USCMA 218, 22 CMR 8. Now, however, the accused relies upon the testimony to invalidate the very charges on which he refused to testify. Having successfully foreclosed cross-examination on these charges at the trial level, it would seem that he should not, on appeal, be permitted to enlarge the effect of his testimony. See United States v Dicario, 8 USCMA 353, 24 CMR 163. Be that as it may, we have examined the evidence with care and we conclude it is sufficient to support the findings of guilty.

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Bluebook (online)
9 C.M.A. 711, 9 USCMA 711, 26 C.M.R. 491, 1958 CMA LEXIS 437, 1958 WL 3409, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-swanson-cma-1958.