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Summary of Opinion — United States v. Clemente Marquez, No. 76-1436 (10th Cir. Oct. 25, 1977)

Factual and Procedural Background

Appellants were sureties on a bail bond executed September 14, 1974, guaranteeing the appearance of defendant Clemente Marquez. Defendant appeared for trial, was convicted, and the bond was continued pending sentencing. After conviction the defendant was granted a new trial. He failed to appear for the second trial on August 18, 1975. Approximately two weeks later the district court declared the appearance bond forfeited. The sureties received no notice of the defendant's failure to appear nor of the declaration of forfeiture; their first notice was a government motion filed November 26, 1975, to enter judgment on the forfeiture. The district court granted the government's motion and, after a hearing, denied the sureties' motion to vacate the judgment. The sureties appealed to the United States Court of Appeals for the Tenth Circuit.

Legal Issues Presented

  1. Whether the bond contract is to be interpreted in light of Colorado law requiring a surety's consent to continue the bond after conviction.
  2. Whether the government is estopped from obtaining forfeiture of the bond because of its failure to notify the sureties of the defendant's fugitive status for over three months.

Arguments of the Parties

Appellants' Arguments

  • The bond contract should be interpreted under Colorado law, which (appellants contend) requires a surety's consent before the bond may be continued after conviction.
  • The government should be estopped from obtaining forfeiture because it failed to notify the sureties of the defendant's failure to appear and of the declaration of forfeiture for more than three months.

Plaintiff-Appellee's Arguments

This opinion does not contain a detailed account of the plaintiff-appellee's separate legal arguments beyond the government's motion to enter judgment on the forfeiture and reliance on Rule 46(e).

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Rodriquez v. People, 554 P.2d 291 Construction of Colo.Rev.Stat. § 16-4-201 (requirement regarding surety consent after conviction) Identified in the opinion as one of the authorities construing Colorado's consent requirement; used to describe the statutory background.
People v. Bartsch, 543 P.2d 1273 Construction of Colo.Rev.Stat. § 16-4-201 (requirement regarding surety consent after conviction) Identified in the opinion as one of the authorities construing Colorado's consent requirement; used to describe the statutory background.
United States v. Wray, W.D.Mo., 389 F. Supp. 1186, 1190-91 Interpretation of identical bond language as imposing liability on surety until defendant surrenders for sentence Referenced as a carefully reasoned opinion holding identical language unequivocally imposed liability upon the surety until surrender; relied on as persuasive authority supporting contract interpretation.
People v. Marshall, Colo.App., 527 P.2d 929 Holding that a bond bearing the written consent of the surety covering the period following conviction complies with § 16-4-201 Used to show that a bond's written language can satisfy the Colorado consent requirement and that separate consents at various stages are not required.
United States v. Jackson, 10th Cir., 465 F.2d 964 Principle that bond language should be strictly construed in accord with its terms Invoked to support strict construction of the bond language and the conclusion that the bond obligated the defendant to surrender and therefore was properly forfeited when he failed to do so.
Williams v. United States, 10th Cir., 444 F.2d 742 (cert. denied, 404 U.S. 938) Surety's contractual obligation to insure defendant's presence in court; duty to be aware of defendant's location Relied upon to support the view that it would be incongruous to condition surety liability on government notice of failure to appear; the sureties bear responsibility for ensuring the defendant's appearance.

Court's Reasoning and Analysis

On the first issue (interpretation of the bond under Colorado law), the court stated it was unnecessary to decide whether state or federal law governs the interpretation of a bond contract in federal court because, even assuming Colorado law applied, the bond's express language provided the necessary consent. The court quoted bond provisions that required the defendant to "abide any judgment" and to surrender to serve any sentence, and that the bond was a "continuing bond" remaining in force until the sureties were "duly exonerated." The court found these provisions to constitute consent under Colorado's statute as construed in the cited Colorado cases. The court cited United States v. Wray as persuasive authority where identical language was held to impose liability until surrender. It also relied on People v. Marshall to show that a bond containing written consent covering the post-conviction period satisfies Colorado's consent requirement. Applying the principle that bond language should be strictly construed (United States v. Jackson), the court concluded that the bond clearly obligated the defendant to surrender for sentencing; his failure to do so justified forfeiture.

On the second issue (notice), the court observed that sureties have a contractual duty to insure the defendant's presence in court and therefore bear responsibility for being aware of the defendant's whereabouts (citing Williams v. United States). Given that obligation, the court declined to condition surety liability on government notice of the defendant's failure to appear. Regarding notice of the court's declaration of forfeiture, the court examined Fed.R.Crim.P. 46(e). It explained that Rule 46(e)(1) requires the court to declare a forfeiture when bond conditions are breached, and Rule 46(e)(3) prescribes notice and procedure when the court is to enter judgment on a forfeiture. The court interpreted the rule to require notice only of the motion to enter judgment under 46(e)(3), not of the initial judicial declaration of forfeiture under 46(e)(1). Because appellants received notice of the motion to enter judgment, the court held Rule 46(e) did not provide a basis for reversal.

Holding and Implications

AFFIRMED.

Holding: The Tenth Circuit affirmed the district court's denial of the sureties' motion to vacate the judgment of forfeiture. The bond's express terms constituted consent to continue the bond after conviction and obligated the defendant to surrender for sentence; his failure to do so supported forfeiture. The court also held that the sureties' contractual duty to ensure the defendant's appearance and the procedure prescribed by Fed.R.Crim.P. 46(e) (notice of the motion to enter judgment) did not require reversal.

Implications: The direct effect is that the district court's judgment forfeiting the bond and denying vacation of that judgment is affirmed and the sureties remain liable under the bond. The opinion does not announce broader legal changes or a new precedent beyond its application of existing authorities to the facts presented.

UNITED STATES OF AMERICA, PLAINTIFF-APPELLEE, v. CLEMENTE MARQUEZ, DEFENDANT,

PER CURIAM.

This is an appeal from a judgment of the district court for the District of Colorado denying a motion to vacate a judgment of forfeiture of a bail bond. Appellants were sureties on a bond guaranteeing the appearance of defendant Clemente Marquez. The bond was executed on September 14, 1974 and defendant subsequently appeared for trial and was convicted. The bond was ordered continued by the court pending sentencing but shortly after the conviction defendant was granted a new trial. He failed to appear for the second trial on August 18, 1975 and two weeks later the district court declared the appearance bond forfeited. Appellants received no notice of defendant's failure to appear nor of the declaration of forfeiture. Their first notice was of a government motion, filed November 26, 1975, to enter judgment on the forfeiture. The district court granted the motion and later, after a hearing, denied appellants' motion to vacate the judgment.

Appellants present two issues on appeal. The first is whether the bond contract is to be interpreted in light of Colorado law which requires a surety's consent to continue the bond after conviction. The second is whether the government is estopped from obtaining forfeiture of the bond because of its failure to notify the sureties of defendant's fugitive status for over three months.

In considering the first issue presented by appellants we believe, as did the district court, that it is unnecessary to decide whether state or federal law governs the interpretation of a bond contract in federal court. Even if we apply Colorado law requiring consent by the sureties to continue a bond after conviction, consent has been given here by the clear force of the contract language. The bond contract specifically provided that

This requirement is found in Colo.Rev.Stat. § 16-4-201 as construed in Rodriquez v. People, Colo., 554 P.2d 291, and People v. Bartsch, Colo.App., 543 P.2d 1273.

the defendant is to abide any judgment entered in [this case] by surrendering himself to serve any sentence imposed and obeying any order or direction in connection with such judgment as the court imposing it may prescribe.

. . . . .

It is agreed and understood that this is a continuing bond which shall continue in full force and effect until such time as the [sureties] are duly exonerated.

Identical language was before the district court for the Western District of Missouri where, in a carefully reasoned opinion, the court held that the contract unequivocably imposed liability upon the surety until the defendant surrendered himself for his sentence. United States v. Wray, W.D.Mo., 389 F. Supp. 1186, 1190-91.

Appellants argue that Wray is distinguishable because there was no Missouri statute requiring the sureties' consent after conviction. Appellants' basic argument is that we should engraft the Colorado consent statute onto the bond contract in order to vary the contract's express terms. Such an action would be clearly improper. That Colorado law does not require it is shown by a decision of the Colorado Court of Appeals in People v. Marshall, Colo.App., 527 P.2d 929. The surety there argued that he had not given his consent to continuing the bond after conviction as required by § 16-4-201. The court's answer is appropriate here:

The bond itself bears the written consent of the surety Rothe, covers the period following conviction to and including "the final sentence or order of the Court," and therefore complies with [§ 16-4-201], if it is applicable. There is nothing in the bond calling for separate consents at various stages in the proceedings.

527 P.2d at 930.

The language of a bond contract should be strictly construed in accord with its own terms. United States v. Jackson, 10 Cir., 465 F.2d 964. The language in the bond at issue here clearly obligated defendant to abide any order of the court and to surrender himself for sentencing. He has failed to comply and the bond was therefore properly forfeited.

In the second issue raised on appeal appellants argue they were entitled to notice of defendant's failure to appear and of the declaration of forfeiture. As to the failure of defendant to appear, it is the sureties' contractual obligation to insure defendant's presence in court at the appropriate time. Williams v. United States, 10 Cir., 444 F.2d 742, cert. denied sub nom., United Bonding Insur. Co. v. United States, 404 U.S. 938, 92 S.Ct. 275, 30 L.Ed.2d 250. It is therefore incumbent upon them to be aware of his location. In light of these considerations it would be incongruous to condition the sureties' liability on notice by the government of defendant's failure to appear, and we decline to do so. See Williams, supra, at 744.

In arguing that they were entitled to notice of the court's declaration of forfeiture appellants cite only Fed.R.Crim.P. 46(e). That rule sets out four possible steps which a district court may take in declaring, enforcing, or setting aside a bond forfeiture. In comparing 46(e)(1) and 46(e)(3) it is quite clear that the court need only provide notice of a motion to enter judgment on the forfeiture under 46(e)(3). There is no requirement for notice to the sureties when the court merely declares the forfeiture under 46(e)(1). Appellants did receive notice of the motion to enter judgment and therefore rule 46(e) does not provide any ground for reversal.

"If there is a breach of condition of a bond, the district court shall declare a forfeiture of the bail."

"When a forfeiture has not been set aside, the court shall on motion enter a judgment of default and execution may issue thereon. . . The motion and such notice of the motion as the court prescribes may be served on the clerk of the court, who shall forthwith mail copies to the obligors to their last known addresses."

Affirmed.

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UNITED STATES v. MARQUEZ
(Oct 25, 1977)