STATE OF NORTH CAROLINA v. NATIVIDAD PENA CORONEL
STATE OF NORTH CAROLINA v. JOSE RAFAEL PENA TOMAYO
No. COA00-503
No. COA00-504
Appeal by sureties from orders entered 1 November 1999 by
Judge Michael E. Beale in Superior Court, Richmond County. Heard
in the Court of Appeals 28 March 2001. Parker, Poe, Adams & Bernstein, L.L.P., by Jack Cozort, for
Connecticut Indemnity Company and Black Jack Bail Bonds,
sureties-appellants.
George E. Crump, III, for Richmond County Board of
Education, judgment creditor-appellee.
TIMMONS-GOODSON, Judge.
Connecticut Indemnity Company (Connecticut) and Black Jack
Bail Bonds (Black Jack) (collectively sureties) appeal the
Superior Court's orders denying their motions to remit judgment
of bond forfeiture. The Richmond County Board of Education (the
Board) are judgment creditors and appellees in the present
action by virtue of its opportunity to be heard pursuant to
section 15A-544 of our General Statutes. See N.C. Gen. Stat. §
15A-544 (1999) (repealed Jan. 1, 2001). Upon review of the
materials submitted on appeal and arguments of counsel, we affirm
the orders of the Superior Court but remand for the limited
purpose herein stated.
The pertinent factual and procedural background is as
follows: On 21 September 1998, the Richmond County Grand Jury
indicted Jose Rafael Pena Tomayo (Tomayo) and Natividad Pena
Coronel (Coronel) (collectively defendants) for trafficking
in marijuana by manufacturing. In October 1998, defendants
posted bond in the amount of $200,000.00, for which Black Jack
and Connecticut acted as the sureties.
In paperwork submitted to Connecticut, defendants both noted
they were of Hispanic descent, their parents resided in Mexico,they resided in North Carolina, and they worked for a farming
operation. Coronel further related that he resided with his
wife, that he had two children, one twenty-six years of age and
one thirteen months old, and that he had resided in the United
States for eighteen years. Notably, Tomayo wrote that he resided
with his aunt and uncle, Coronel and his wife, and had only been
a resident of the United States for one year and five months.
On 14 December 1998, defendants failed to appear at the
criminal session of Superior Court, Richmond County. Sureties
did not attend the 14 December court session. The Superior Court
entered orders of bond forfeiture against defendants and gave
notice to the sureties of those orders on 22 December 1998.
In orders entered 20 April 1999, the trial court filed two
Judgment[s] of Forfeiture against defendants and sureties, each
in the amount of $200,000.00. On 20 October 1999, sureties filed
motions to remit the forfeited bond, stating that extraordinary
circumstances exist[ed] for the court to set aside its judgment,
in that defendants [were] deceased and unable to be
surrendered. At a hearing based on sureties' motion, Sean
Regan (Regan), office manager and supervising agent for Black
Jack, testified that in an effort to retrieve defendants, his
company sponsored two trips to Mexico by [Agent] Brian Moody
where the defendants were originally located in Guadalajara[.]
Regan further testified that while in Mexico, Agent Moody
received death threats due to defendants' connections to thelocal drug cartel and was forced to retreat. According to Regan,
Black Jack tried to arrange for legal extradition of defendants,
but at some point, turned the matter over to its insurance
company, who also tried to have defendants extradited. Regan
admitted that his company had no independent means to monitor
whether defendants appear in court.
Frederick Yerger (Yerger), a recovery agent supervisor for
Capital Bonding Company (Capital) (the organization who
underwrote the bonds for Connecticut), testified concerning
Capital's efforts to recover defendants. Yerger's testimony
revealed that upon receiving notice that defendants failed to
appear, he r[a]n a computer check . . . to see if defendants
show[ed] up anywhere in [the] public record and assigned the
case to recovery agent Troy Thompson (Agent Thompson or
Thompson). According to Yerger, later in April 1999, he also
assigned another recovery agent, only identified as Collins, to
manage defendants' recovery effort. At that point, Collins
confirmed that defendants had fled to Mexico.
According to Yerger, Capital sponsored two trips to Mexico,
in which recovery agents attempted to legally extradite
defendants to North Carolina. Agent Thompson submitted an
expense report from his Mexican trips (Thompson's expense
report), indicating that his expenses began on 4 July 1999,
ended on 24 August 1999, and totaled $1,903.36. This was the
only evidence submitted indicating the actual expenses and timeexhausted in the recovery of defendants. A check request form
was also submitted at trial noting that Capital paid Thompson
$7,203.31 for the recovery of Tomayo. According to Yerger, the
amount of the check was in addition to Agent Thompson's expenses.
Yerger testified that on their first trip to Mexico, three
agents, including Thompson, observed defendants for three days.
However, because the Mexican federales would not cooperate with
the agents and defendants were under armed guard, the agents
backed off to avoid an incident. Evidence at trial further
revealed that on his second trip to Mexico, Agent Thompson
discovered that defendants had died in an 11 August 1999
automobile accident from [t]rauma to the cranial area. Agent
Thompson filed an affidavit with the court noting the following:
[D]efendants were located during prior investigations in
Guadalajara, Mexico. After returning to that area to attempt to
apprehend [defendants], it was learned through the 'federales'
that [defendants] were deceased . . . .
Yerger acknowledged that he did not supervise how the
bonding company looks after [defendants in North Carolina] or
tr[ies] to keep up with them. Yerger admitted that it was not
unusual for Mexicans doing farm labor to return to Mexico.
Yerger further acknowledged that once a Mexican farm worker
retreats to Mexico, you can get him, but you just can't get him
in the same way you do here. Yerger affirmed that this was
[a]bsolutely a risk that bond companies take. On 1 November 1999, the trial court entered an order as to
each defendant, denying sureties' motions. Pertinent to the
issues presented on appeal, the trial court's findings of facts
are as follows:
4. Judgment of bond forfeiture . . .
was entered against defendant[s] and each
surety . . . on April 8, 1999[.]
. . . .
6. That the grounds stated in the
sureties' motion[s] are that [defendants are]
deceased and unable to be surrendered by the
surety and, therefore, extraordinary
circumstances exist wherein it would be fair
for the Court to set aside all or part of the
[judgments of bond forfeiture].
. . . .
14. [The] valid death certificate[s] of
[defendants show] that [the] date of [their]
death[s] was August 11, 1999.
15. [Sureties] have introduced no
evidence that [defendants were] either dead
or hospitalized on December 14, 1998, the
date that [defendants] called and failed
[sic] in Richmond Criminal Court and the date
the Order of Forfeiture was issued.
16. [Sureties] have introduced no
evidence whatsoever that they made any
assurance as to the attendance of
[defendants] on December 14, 1998 . . . .
17. [Sureties] have introduced no
evidence that [they] made any efforts to
verify whether or not [defendants were] in
attendance in Court on . . . December 14,
1998.
18. [Sureties] made no efforts to
locate [defendants] prior to July 4, 1999, as
shown by [Thompson's expense report].
Based upon these findings, the trial court concluded that
the circumstances of the defendant[s'] death[s] on August 11,
1999, does not constitute 'extraordinary cause' as a matter of
law to warrant remittance of the bond judgment in whole or in
part. Sureties appeal the court's 1 November 1999 orders, and
the appeals have been consolidated for consideration by this
Court.
Sureties argue on appeal that the trial court erred (I) in
concluding that they failed to present extraordinary cause
warranting remittance of the forfeited bond; (II) in finding as
fact that their first efforts to locate defendants began in July
1999; and (III) in finding as fact that judgment of forfeiture
was entered on 8 April 1999.
I.
[1]By their first argument, sureties contend that the trial
court erred in concluding that the death of defendants did not
constitute extraordinary cause. Sureties argue that because
death of a principal constitutes extraordinary cause, they are
entitled to remittance of the forfeited bonds when the death of
their principal occurred after the execution of judgment of
forfeiture. With this argument, we disagree.
Section 15A-544 of our General Statutes, now repealed,
(See footnote 1)
governs the forfeiture of the bond in the present case. N.C.G.S.
§ 15A-544. Even after the entry of judgment of forfeiture, if a
surety surrenders a defendant within ninety days, the trial court
must remit the bond. N.C.G.S. § 15A-544(e). Section 15A-544
allows for remittance of bonds, in whole or in part, after entry
of judgment of forfeiture, where the defendant is not surrendered
to the court within ninety days, in two situations. Pursuant to
section 15A-544(e), the trial court may remit judgment anytime
within ninety days after entry of judgment if justice requires.
N.C.G.S. § 15A-544(e). Section 15A-544(h) states, in pertinent
part: For extraordinary cause shown, the court which has entered
judgment upon a forfeiture of a bond may, after execution, remit
the judgment in whole or in part and order the clerk to refund
such amounts as the court considers appropriate. N.C.G.S. §
15A-544(h).
Whether a surety must show that extraordinary cause exists
for or justice requires remittance of forfeiture, depends upon
when the motion of remittance is filed, not when the cause
entitling a surety to remittance occurs. For example, if thedeath of a principal occurs prior to the date of appearance, but
the surety does not discover that death prior to execution of the
judgment of forfeiture, the surety must file his remittance
motion pursuant to section 15A-544(h). Likewise, if death occurs
between the appearance and the entry of judgment or within ninety
days thereof, but the surety does not discover the death until
after execution, the surety must also file his motion pursuant to
section 15A-244(h), requiring him to show extraordinary cause,
not section 15A-244(e).
Because sureties in the case
sub judice did not move to
remit the judgments of forfeiture in the case within the period
allowed by section 15A-544(e), section 15A-544(h) was the
authority by which sureties moved for remittance of forfeiture
and is the statutory provision at issue in the present appeal.
This Court has previously held that it is within the court's
discretion to remit judgment for extraordinary cause, and we
therefore review the court's decision pursuant to section 15A-
544(h) for abuse of discretion.
See State v. Harkness, 133 N.C.
App. 641, 516 S.E.2d 166 (1999). Extraordinary cause, under
section 15A-544(h), is cause 'going beyond what is usual,
regular, common, or customary . . . of, relating to, or having
the nature of an occurrence or risk of a kind other than what
ordinary experience or prudence would foresee.'
State v. Vikre,
86 N.C. App. 196, 198, 356 S.E.2d 802, 804 (1987) (alteration in
original) (quoting
Webster's Third New International Dictionary(1968)). In determining whether the facts of a particular case
constitute extraordinary cause, the trial court must make
'brief, definite, pertinent findings and conclusions.'
State
v. Moore, 64 N.C. App. 516, 520, 307 S.E.2d 834, 836 (1983)
(quoting
State v. Rakina and State v. Zofira, 49 N.C. App. 537,
541, 272 S.E.2d 3, 5 (1980));
see also State v. Lanier, 93 N.C.
App. 779, 379 S.E.2d 109 (1989).
There are no North Carolina appellate cases examining
remittance of forfeiture pursuant to section 15A-544(h) under the
circumstances presented by the instant case. Thus, the issue of
whether death after the execution of judgment of forfeiture can
constitute extraordinary cause, allowing for remittance under
section 15A-544(h) is one of first impression in this State.
Generally, North Carolina appellate cases reviewing remittance of
forfeiture pursuant to section 15A-544(h) examine circumstances
concerning defendants' whereabouts
on the day he was to appear in
court, which are discovered after the execution of judgment, or
situations in which defendants are captured after execution of
judgment
. Furthermore, our review of our appellate cases yields
no clear consensus as to what set of circumstances constitutes
extraordinary cause. Rather, these cases indicate that such a
determination is a heavily fact-based inquiry and therefore,
should be reviewed on a case by case basis. A brief review of
extraordinary cause cases is therefore instructive.
In
Moore, 64 N.C. App. 516, 307 S.E.2d 834, for example, aprivate surety secured the bond of a long-time, ra
ther
impoverished employee. On the day the defendant was to appear in
court, he had been arrested and released on a prior pending
charge. The surety later moved for remittance of forfeiture.
The surety claimed that he was unaware of the prior charge, and
that although he could not confirm it, he was informed that the
defendant committed suicide. The surety believed that the prior
charge 'accounted for the defendant's disappearance.'
Id. at
518, 307 S.E.2d at 835. Evidence further revealed that the
forfeiture of bond would have forced the surety into bankruptcy.
There was no evidence that defendant died prior to the date
he was to appear in court, only that he had been released prior
to that date. Based upon these circumstances, this Court found
that there existed ample evidence of extraordinary cause.
Id.
at 519, 307 S.E.2d at 836.
Compare State v. White, 93 N.C. App.
773, 379 S.E.2d 269 (1989) (finding that trial court did not
abuse its discretion in concluding no extraordinary cause
existed where defendant was arrested after date of appearance and
private surety was not well-educated, but he knew defendant's
whereabouts on the day he was to appear, had not expended a great
amount of money in searching for defendant, and his efforts were
not dramatic).
Regarding professional sureties, our appellate courts have
found that where the defendant is in custody in another
jurisdiction on the day he was to appear in court and this factwas not discovered until after the entry of judgment of
forfeiture, extraordinary cause generally does not exist.
Vikre, 86 N.C. App. 196, 356 S.E.2d 802;
State v. Pelley, 222
N.C. 684, 24 S.E.2d 635 (1943). Where sureties are aware that
defendants have a connection to Mexico and they are subsequently
held in Mexican custody on the day that they are to appear in
court, extraordinary cause does not exist, even where sureties
expend considerable time and money in recovery.
Vikre, 86 N.C.
App. 196, 356 S.E.2d 802
. The above referenced decisions are
based upon the risks assumed by the sureties and their custodial
relationship with the defendants.
Vikre, 86 N.C. App. at 198,
356 S.E.2d at 805 (by initially securing the bond, [t]he
sureties become custodians of the [defendant] and are responsible
for the [defendant] and . . . for the bond if the [defendant]
fails to appear in court when required). At least one of these
cases,
Pelley, indicates, in
dicta, that death or illness of the
principal
on the day he is to appear in court can constitute an
excusable defense requiring remittance of forfeiture after the
ninety-day time limit has passed.
See Pelley, 222 N.C. at 688,
24 S.E.2d at 637 (noting that relief can be sought where
appearance by defendant is rendered impossible or excusable by
an act of God);
see cf. State v. Horne, 68 N.C. App. 480, 483,
315 S.E.2d 321, 323 (1984) (finding that motion for remittance
under section 15A-544(e), not section 15A-544(h), was properly
denied where there was no evidence of personal sickness ordeath on the day defendant was scheduled to appear in court).
Finally, our appellate courts have held that extraordinary
cause exists where the professional surety actually recovered
the defendant after the ninety-day deadline, although surety's
search efforts were not dramatic.
State v. Locklear, 42 N.C.
App. 486, 489, 256 S.E.2d 830, 832 (1979).
The Board argues, based upon
Pelley, that death can
constitute extraordinary cause, only upon a showing that death
occurred
on or prior to the date the defendant should have
appeared in court. We find that
neither
Pelley nor any other
North Carolina case supports this assertion. Rather, as stated
supra,
Pelley only mentions in
dicta that proof of death prior to
the date of the defendant's appearance allows for remittance of
forfeiture, but it does not limit remittance to cases where death
occurs prior to the date defendant should have appeared in court.
We, in fact, agree with the Court in
Pelley, that a
defendant's death prior to the date the principal was to appear
in court constitutes extraordinary cause, even if discovered
after the execution of judgment of forfeiture. It is axiomatic
that under those circumstances it would be not only beyond
extraordinary, but impossible for the surety to ensure the
defendant's appearance. As the United States Supreme Court long
ago acknowledged: It is the settled law . . . that the bail will
be exonerated where the performance of the condition is rendered
impossible by the act of God, the act of the obligee, or the actof the law.
Taylor v. Taintor, 83 U.S. 366, 369, 21 L. Ed. 28
7,
289 (1873) (footnote omitted). Situations [w]here the principal
dies before the day of performance falls within the above noted
category of cases.
Id.;
see also People v. Parkin, 189 N.E. 480
(N.Y. 1934) (suggesting that death of defendant prior to
appearance allows remittance of right).
We do not agree, however, that remittance should be allowed
only where defendant's death occurs prior to or on the date of
his scheduled appearance. As noted
supra, there is no North
Carolina case supporting this assertion. Neither do our
appellate courts expressly exclude the possibility that
extraordinary cause can exist where death occurs after the
defendant's scheduled appearance.
Furthermore, while cases from other jurisdictions are not
binding on this Court, they provide insight into how this novel
issue has been previously analyzed and are therefore instructive.
These cases indicate that while remittance of forfeiture based
upon the defendant's death prior to the date he is to appear in
court is either a matter of right or of course, remittance
may be
allowed when the defendant's death occurs after the court date,
given certain circumstances.
See Parkin, 189 N.E. 480;
People v.
Midland Ins. Co., 411 N.Y.S.2d 521 (N.Y. Sup. Ct. 1978);
see also
Western Surety Co. v. People, 208 P.2d 1164 (Colo. 1949);
State
v. Warwick, 29 N.E. 1142 (Ind. App. Ct. 1892);
State v.
Traphagen, 45 N.J.L. 134 (N.J. 1883). These cases furtherindicate that essential to determining what conditions allow
remittance of forfeiture is a close examination of the statutory
provisions governing remittance.
See e.g., Warwick, 29 N.E. 1142
(noting that the right to obtain discharge from forfeiture is
statutory);
People v. Caro, 753 P.2d 196 (Colo. 1988) (indicating
a strict adherence to the statutory language in that where
statute did not allow for forfeiture to be set aside, sureties'
only option was a motion per Rule 60). Accordingly, to determine
whether remittance of forfeiture is allowed in this State where
death occurs after the date of appearance and, as in the present
case, even after execution of judgment, we now examine section
15A-544(h).
In construing the meaning of a statute, this Court must
effectuate the intent of the legislature, which is revealed in
the language of the statute, the spirit of the statute, and what
it seeks to accomplish.
State ex rel. Utilities Commission v.
Public Staff, 309 N.C. 195, 210, 306 S.E.2d 435, 444 (1983). The
plain language of section 15A-544(h) provides no guidance as to
whether extraordinary cause can exist where a defendant's death
occurs after the date of appearance. However, what we do glean
from section 15A-544(h) is that the statutory language does not
prohibit remittance under those circumstances. It follows that
the legislature did not, as the Board suggests, intend to limit
remittance of forfeiture on a motion made after the execution of
judgment only to those cases where the surety can present a validexcuse for defendant's failure to appear. Rather, the use of
the term extraordinary cause engenders a less rigid
interpretation reflecting the compromise between the purpose of
the forfeiture statute and the purpose of our bail bonds system
in general.
Accord Fed. R. Civ. P. 46(e)(1) (stating that
forfeiture may be set aside if defendant is subsequently
surrendered . . .
or if it otherwise appears that justice does
not require the forfeiture.)
and advisory committee's note to
Rule 46(e) (noting that Rule 46(e) represents an effort to
incorporate some flexibility).
The purpose of the forfeiture statutes is to establish an
orderly procedure for forfeiture [of bail bonds], N.C.G.S. §
15A-544, official commentary; while the well-established purpose
of bail bonds is to secure the appearance of the principal in
court as required.
Vikre, 86 N.C. App. at 199, 356 S.E.2d at
804.
See generally Wiegand v. State, 768 A.2d 43 (Md. 2001)
(discussing extensively purpose behind forfeiture statutes).
North Carolina's orderly procedure for forfeiture, relies upon
the continued cooperation of private and professional sureties.
Sureties must be assured that if they expend money, time, and
effort to recover criminal defendants, they have viable remedies
for the return of forfeited bond money.
By the same token, the court system's paramount concern is
ensuring the return of the criminal defendant for prosecution.
See Caro, 753 P.2d at 201 (the primary purpose of a bail bond isto assure that the defendant appears for trial). We have
accordingly deemed sureties the custodians of defendant and thus,
when the sureties entered into the conditions of the bail bonds
on behalf of defendant . . . they became responsible for his
appearance in . . . court.
Vikre, 86 N.C. App. at 200, 356
S.E.2d at 805. To this end, we have also required, pursuant to
our definition of extraordinary cause, that sureties and their
bondsmen diligently pursue defendants. The dual purpose inherent
in our statutory scheme governing remittance suggests that where
sureties diligently pursue defendants, who subsequently die
through no fault of the surety, it would be unfair to the surety,
whose function is to ensure the orderly procedure for the return
of the defendants, not to then allow remittance.
Based upon the purpose behind section 15A-544(h), we
conclude that extraordinary cause can exist where the defendant
dies after the date of appearance and even, as in this case,
after the execution of judgment of forfeiture. However, given
the well-established and flexible definition of extraordinary
cause, it is our belief that extraordinary cause does not
exist based solely on the fact of defendants' death where it
occurs after the date of appearance, and especially if it occurs
after the execution of judgment. The fact of the defendant's
death must be weighed against certain factors in determining
whether a forfeited bond may be remitted for extraordinary
cause. In accordance with our jurisprudence in this area, thesefactors include the inconvenience and cost to the State and the
courts,
see Jeffers v. United States, 588 F.2d 425, 427 (1978);
the diligence of sureties in staying abreast of the defendant's
whereabouts prior to the date of appearance and in searching for
the defendant prior to his death; the surety's diligence in
obtaining information of the defendant's death, the risk assumed
by the sureties,
see Vikre, 86 N.C. App. 196, 356 S.E.2d 802
; the
surety's status, be it private or professional; and the timing of
the defendant's death--whether it occurred after the date of
appearance and prior to entry of judgment, after the entry of
judgment and prior to execution, or, as in this case, after
execution of judgment.
Our emphasis on a surety's diligence as a factor
notwithstanding, we caution that diligence alone will not
constitute extraordinary cause, for due diligence by a surety
is expected,
see State v. Shredeh, 909 S.W.2d 833, 836 (Tenn. Ct.
App. 1995)(authority to relieve sureties from liability may only
be exercised in extreme cases, such as the death of the defendant
or some other condition making it impossible for sureties to
surrender the defendant; the good faith effort made by the
sureties or the amounts of their expense are not excuses);
neither will the amount of expenses incurred by professional
sureties due to a forfeiture,
see Locklear, 42 N.C. App. 486, 256
S.E.2d 830.
Furthermore, it was suggested at oral argument that becausedeath is the ultimate justice, punishment, and capture,
and
because it ends the State's prosecution of defendants, death
alone, at any time, constitutes extraordinary cause. With this
argument, we cannot agree. If death alone at any time after
defendant's date of appearance were to constitute extraordinary
cause, it would give sureties no incentive to diligently pursue
defendants. Presenting simply a death certificate, months, maybe
years after execution of the judgment of forfeiture, sureties,
who possibly expended little time and effort to search for
defendants, could move for and receive remittance.
See cf.
Western Surety Co., 208 P.2d at 1166 (citation omitted) (noting
that although death after forfeiture may constitute a defense to
forfeiture, 'it seems that if a long period of time has elapsed
after the forfeiture of the bond before the death of the
principal occurs--as, for example, two years--the death does not
constitute a defense to an action on the bond'). Such a result
runs contrary to the purpose behind the remittance statute.
Although we agree with sureties, that extraordinary cause
can exist where death occurs after the execution of judgment of
forfeiture, we conclude extraordinary cause did not exist in
the present case. Based on the facts presented at the hearing,
sureties' pursuit was simply not diligent. The key to this
conclusion is a complete lack of evidence demonstrating that the
sureties were concerned with defendants' 14 December appearance.
They did not attend court on that date and acknowledged that theyhad no method of knowing whether defendants attended court.
Moreover, they offered no explanation as to why defendants were
not in attendance.
Furthermore, sureties subsequently located defendants in
Mexico, apparently on trips that did not commence until July
1999. It appears that sureties could have detected defendants'
whereabouts much earlier, given the information submitted to then
by defendants, and their own sources indicating, possibly as
early as April 1999, that defendants fled to Mexico. Sureties
certainly assumed some risk, as defendants were Mexican farm
workers,
see Vikre, 86 N.C. App. at 198, 356 S.E.2d at 804, one
of whom had only lived in the United States for one year and five
months. Sureties were also aware that their power to capture
defendants in Mexico was very limited, compared to their
authority to do so in the United States
. See Taylor, 83 U.S.
366, 21 L.Ed. 287. Given the facts presented by the present
case, we conclude that the court did not abuse its discretion in
concluding: the cause of the defendant[s'] death[s] on August
11, 1999, does not constitute 'extraordinary cause' as a matter
of law to warrant remittance of the bond judgment in whole or in
part. Sureties' first argument is therefore overruled.
II.
III.