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Summary of Opinion: State of Arizona ex rel. Grant Woods v. The Hon. Charles A. Filler, et al.

Factual and Procedural Background

The trial court issued a search warrant for gambling-related evidence at premises owned by respondents Jerry L. Roper and Edith I. Roper d/b/a Lester's Cocktail Lounge, and Lily Pad Social Club. Police seized approximately $20,000 in cash and gambling paraphernalia. On March 6, 1991, the State filed a notice of seizure and pending forfeiture for most of the seized property. Respondents applied for an order to show cause pursuant to A.R.S. § 13-4310(B) (application filed March 20, 1991). An order to show cause hearing commenced (the opinion refers to hearings commencing on March 29, 1991, and on April 5, 1991). At the hearing the State offered hearsay testimony to establish probable cause for forfeiture; respondents objected, arguing A.R.S. § 13-4310(E)(2) is unconstitutional as an invasion of the Arizona Supreme Court's rule-making authority. The trial court sustained the objection and recessed the hearing until April 9, 1991. The State filed this special action seeking relief; this Court stayed further proceedings, accepted jurisdiction, and in this opinion grants relief.

Legal Issues Presented

  1. Is Arizona Revised Statutes § 13-4310(E)(2), which allows hearsay testimony to be presented in an order to show cause forfeiture hearing, unconstitutional as a legislative invasion of the Arizona Supreme Court's rule-making authority?

Arguments of the Parties

Petitioner (State of Arizona)

  • The statute A.R.S. § 13-4310(E)(2) permits hearsay testimony in order to determine probable cause at an order to show cause hearing and is consistent with other contexts where hearsay is admissible for probable cause (e.g., preliminary hearings, grand juries, magistrate determinations).
  • The statute is a "reasonable and workable" statutory method that supplements, rather than conflicts with, the Rules of Evidence and therefore does not improperly invade the Supreme Court's rule-making authority.
  • Relevant procedural rules (e.g., Rule 5.4(c) of the Arizona Rules of Criminal Procedure) illustrate safeguards applicable to hearsay in probable-cause contexts; those safeguards are met here (declarants reasonably expected to be available for trial).

Real Parties in Interest (Respondents)

  • Respondents objected to the admission of hearsay testimony, asserting A.R.S. § 13-4310(E)(2) is unconstitutional because it invades the Arizona Supreme Court's rule-making authority regarding evidentiary rules.
  • Respondents pointed out that the State's witnesses were available to testify and argued that admitting hearsay when declarants are available undermines procedural protections.
  • Respondents relied on State v. Robinson and State v. Fowler to support their position that statutory encroachments on evidentiary rules (or procedural rules) can be unconstitutional.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
State v. Brazil, 18 Ariz. App. 545, 504 P.2d 76 (1973) Hearsay admissible to establish probable cause for issuance of a search warrant when a substantial basis for crediting the hearsay is presented. Used to support the proposition that hearsay may be admissible in preliminary probable-cause contexts, analogous to an order to show cause hearing.
State ex rel. Collins v. Seidel, 142 Ariz. 587, 691 P.2d 678 (1984) Supreme Court may recognize statutory evidentiary procedures that are reasonable and workable; statutes that conflict with or "engulf" court-promulgated rules cannot stand. Applied as the controlling framework for deciding whether A.R.S. § 13-4310(E)(2) is an acceptable statutory method supplementing the Rules of Evidence; court concluded the statute is "reasonable and workable."
Ammerman v. Hubbard Broadcasting, Inc., 89 N.M. 307, 551 P.2d 1354, 1357 (1976) Rules of evidence are procedural in nature and promulgation of such rules is within the court's constitutional authority. Cited (via Seidel) to support the premise that rules of evidence are procedural and within the Supreme Court's rule-making power.
State ex rel. Collins v. Superior Court, 132 Ariz. 180, 644 P.2d 1266 (1982) Requirements for expert testimony under Rule 702, including general acceptance (Frye) and foundational proof by a qualified expert. Referenced in discussing the interplay between statutory evidentiary procedures and Rule 702's requirements for scientific or technical testimony.
Frye v. United States, 293 Fed. 1013 (D.C. Cir. 1923) General acceptance test for admissibility of scientific evidence (Frye standard). Cited as the standard cases construing Rule 702 require for scientific evidence acceptance.
Alexander v. Delgado, 84 N.M. 717, 507 P.2d 778, 779 (1973) Recognition of statutory arrangements which supplement rules promulgated by the court is permissible when reasonable and workable. Quoted in Seidel and relied upon as authority that statutes may supplement court rules when appropriate.
State v. Herrera, 92 N.M. 7, 582 P.2d 384 (1978) Comparative authority cited regarding recognition of statutory procedures. Referenced in the Seidel discussion; cited as comparative authority.
Barsema v. Susong, 156 Ariz. 309, 751 P.2d 969 (1988) When a statute conflicts with the Rules of Evidence it cannot be upheld. Cited to reinforce the principle that statutory provisions cannot supersede or engulf court-promulgated rules.
State v. Ryan, 103 Wn.2d 165, 691 P.2d 197 (1984) Upheld a statute nearly identical to A.R.S. § 13-1416 against a rulemaking challenge; Rule 802 contemplates statutory exceptions to hearsay rule. Relied upon to support the view that statutory exceptions to hearsay may be consistent with the Rules of Evidence.
State v. Robinson, 153 Ariz. 191, 735 P.2d 801 (1987) Limits legislative alteration of hearsay rules in criminal cases where confrontation rights are implicated; demonstrates rulemaking reach in criminal trials on the merits. Distinguished by the court as inapposite here because Robinson involved a criminal trial on the merits and confrontation rights, whereas an order to show cause is a preliminary, non-criminal proceeding.
Readenour v. Marion Power Shovel, 149 Ariz. 442, 719 P.2d 1058 (1986) Recognized statutory additions to evidentiary rules in certain contexts. Referenced alongside Seidel as prior recognition of statutory evidentiary methods that may supplement court rules.
State v. Fowler, 156 Ariz. 408, 752 P.2d 497 (App. 1987) Struck down a statute that directly conflicted with a court rule (one-year limitation on post-conviction relief conflicted with rule allowing filing "at any time"). Found inapposite by the court because the statute at issue here does not conflict with the Rules of Evidence.

Court's Reasoning and Analysis

The court's analysis proceeded in these principal steps, each based on materials and authorities cited in the opinion:

  1. Characterization of the proceeding: The order to show cause hearing is a preliminary hearing in which the sole issue is whether probable cause for forfeiture exists, not a trial on the merits.
  2. Statutory language: A.R.S. § 13-4310(E)(2) directs the court to receive "all evidence and information that would be permissible in determining probable cause at a preliminary hearing, at a grand jury or by a magistrate," expressly permitting hearsay in that context.
  3. Analogous precedents and rules: The court observed that hearsay has long been admissible to establish probable cause in preliminary hearings, grand jury proceedings, and for magistrate issuance of search warrants (citing State v. Brazil and the rules permitting hearsay in such contexts).
  4. Rule-making authority and statutory supplementation: Relying principally on State ex rel. Collins v. Seidel, the court explained that the Arizona Supreme Court's rule-making power does not preclude recognition of statutory evidentiary procedures so long as they are reasonable and workable and do not conflict with court-promulgated rules; when a conflict arises, the court's rules prevail.
  5. Consistency with Rules of Evidence and procedural rules: The court examined Rule 802 (which permits statutory exceptions to the hearsay rule), Rule 1101 (scope of rules), and Rule 5.4(c) of the Arizona Rules of Criminal Procedure (which permits hearsay at preliminary hearings under safeguards). The court found § 13-4310(E)(2) consistent with the purposes of hearsay exceptions in Rules 803 and 804 and consistent with the limited-scope application of Rule 1101(d) (grand jury proceedings excluded from Rules of Evidence).
  6. Safeguards and availability of declarants: The court noted Rule 5.4(c)(3)'s safeguard (hearsay permissible where declarants reasonably expected to be available at trial) and found that safeguard satisfied in this case because there were reasonable grounds to believe declarants would be available at trial.
  7. Distinguishing contrary authority: The court distinguished State v. Robinson (criminal trial on merits with confrontation issues) and State v. Fowler (statute conflicting directly with a court rule on post-conviction timing) as inapposite to the preliminary, noncriminal order to show cause hearing context.
  8. Conclusion of analysis: Because § 13-4310(E)(2) is a reasonable, workable statutory method that supplements the Rules of Evidence without conflicting with them, the statute is constitutional as applied to an order to show cause hearing; exclusion of hearsay at that hearing was error.

Holding and Implications

Holding: The Court held that Arizona Revised Statutes § 13-4310(E)(2) is constitutional as applied to order to show cause forfeiture hearings, and that the trial court erred in excluding hearsay testimony at such a hearing.

Implications and direct effects:

  • The stay previously entered by this Court is lifted.
  • The trial court's exclusion of hearsay at the order to show cause hearing is reversed and the case is remanded to the trial court for further proceedings consistent with the opinion.
  • The opinion reasons that § 13-4310(E)(2) is a statutory evidentiary method that supplements the Rules of Evidence in preliminary probable-cause forfeiture hearings; the opinion does not purport to resolve hearsay questions at a trial on the merits (the court expressly limited its holding to order to show cause hearings).

Disposition: Relief granted; remanded for further proceedings consistent with this opinion.

Opinion by Shelley, Judge. Contreras, P.J., and Eubank, J., concur.

This summary is limited to information contained in the provided opinion and does not supplement with outside material.

STATE of Arizona, ex rel., Grant WOODS, Attorney General, Petitioner, v. The Honorable Charles A. FILLER, Judge, the Superior Court of the State of Arizona, in and for the County of Maricopa, Respondent, Jerry L. ROPER and Edith I. Roper d/b/a Lester's Cocktail Lounge, and Lily Pad Social Club, Real Parties in Interest.

OPINION

SHELLEY, Judge.

This special action was filed by the State of Arizona (state) against Jerry L. Roper and Edith I. Roper d/b/a Lester's Cocktail Lounge, and Lily Pad Social Club, real parties in interest (respondents). The state filed a notice of seizure and pending forfeiture of personal property belonging to respondents in the trial court. An order to show cause hearing commenced on April 5, 1991, pursuant to A.R.S. § 13-4310(B). The sole issue in an order to show cause hearing is whether there is probable cause for the forfeiture of the property. A.R.S. § 13-4310(E)(2) permits hearsay testimony to establish probable cause. Respondents objected to hearsay testimony, asserting that A.R.S. § 13-4310(E)(2) is unconstitutional because it invades the Arizona Supreme Court's rule making authority. The trial court sustained the objection. The court then recessed the hearing until April 9, 1991. The state filed this special action. We granted the state's request for a stay of all further proceedings until the further order of this court. We have previously accepted jurisdiction with this opinion to follow. We grant relief.

BACKGROUND

The trial court issued a search warrant for gambling-related evidence for the search of the premises owned by respondents. Pursuant thereto, the police seized as evidence approximately $20,000 in cash, gambling tables, cards, dice, and other gambling-related paraphernalia from the premises of the respondents.

On March 6, 1991, the state filed a notice of seizure and pending forfeiture of most of the property previously seized as evidence under the search warrant. On March 20, 1991, pursuant to A.R.S. § 13-4310(B), respondents applied for an order to show cause. On March 29, 1991, an order to show cause hearing commenced. The state offered hearsay testimony to establish probable cause that the property was subject to forfeiture. The court sustained the objection to the admissibility of hearsay testimony. A.R.S. § 13-4310(B) and (E)(2) reads:

B. If property is seized for forfeiture without a prior judicial order of forfeiture or a hearing pursuant to § 13-4312, subsection D, a court, on an application filed by an owner of or interest holder in the property within fifteen days after notice of its seizure for forfeiture or actual knowledge of it, whichever is earlier, and complying with the requirements for claims in § 13-4311, subsections E and F, may issue an order to show cause to the seizing agency, with five days' notice to the attorney for the state, for a hearing on the sole issue of whether probable cause for forfeiture of the property then exists. If the court finds that there is no probable cause for forfeiture of the property, any property seized for forfeiture from the applicant shall be released from its seizure for forfeiture pending the outcome of a judicial proceeding pursuant to this chapter.

. . . .

E. In hearings and determinations pursuant to this chapter:

. . . .

2. The court shall receive and consider, in making any determination of probable cause or reasonable cause, all evidence and information that would be permissible in determining probable cause at a preliminary hearing, at a grand jury or by a magistrate pursuant to § 13-3913, together with inferences from the evidence and information. [Emphasis added.]

The order to show cause hearing is a preliminary hearing only and not a trial on the merits. Hearsay evidence is admissible to establish probable cause before a grand jury and in preliminary hearings. Hearsay is also admissible to establish probable cause for the issuance of a search warrant by a magistrate, provided a substantial basis for crediting the hearsay is presented. See State v. Brazil, 18 Ariz. App. 545, 504 P.2d 76 (1973).

Arizona Revised Statutes § 13-4311(D), (J), and (K) provide for a hearing on the merits, wherein the state has the initial burden of showing probable cause for forfeiture of the property. Pursuant to A.R.S. § 13-4310(E)(2), this burden may also be met by hearsay testimony. Respondents challenge the constitutionality of the statute as it applies to order to show cause hearings and to a trial on the merits. A trial on the merits has not occurred in this case. The right to present hearsay testimony to establish probable cause in a hearing on the merits was never presented to the trial court nor was it ripe for determination. The only issue properly before this court is the constitutionality of § 13-4310(E)(2) as it applies to the order to show cause hearing.

The question to be decided in this action is purely a question of law, unrelated to any factual disputes. The issue presented is a matter of first impression in this state. We deem it to be of state-wide importance.

IS ARIZONA REVISED STATUTES § 13-4310(E)(2), WHICH ALLOWS HEARSAY TESTIMONY TO BE PRESENTED IN AN ORDER TO SHOW CAUSE FORFEITURE HEARING, UNCONSTITUTIONAL AS A LEGISLATIVE INVASION OF THE SUPREME COURT'S RULE-MAKING AUTHORITY?

In State ex rel. Collins v. Seidel, 142 Ariz. 587, 691 P.2d 678 (1984), our supreme court accepted a statutory rule which established a procedure for evidentiary admission of the results of blood alcohol tests. It did not require the use of expert witnesses. However, expert witnesses are required pursuant to the rules of evidence for the admission of this type of evidence. Our supreme court stated:

We turn, then, to the procedural problem. We have promulgated a set of evidentiary rules which allow admission of evidence by one procedure, while the legislature has adopted a statute (§ 28-692.03) which permits admission by a different procedure. The question before us today is: which shall govern? Is the statutory system exclusive or do the Rules of Evidence also apply?
The constitution of Arizona gives the Supreme Court the power to make rules relative to all procedural matters in any court (footnote omitted). Article 6, § 5(5). Pursuant to that authorization, this court promulgated the Rules of Evidence to take effect on September 1, 1977. Rules of evidence have generally been regarded as procedural in nature. Ammerman v. Hubbard Broadcasting, Inc., 89 N.M. 307, 310, 551 P.2d 1354, 1357 (1976); thus, our promulgation of these rules was within the power granted us by the constitution. See also 1 Wigmore on Evidence, § 7, 462-63 n. 1 (Tillers rev. 1983). The rules cover admission of `Opinions and Expert Testimony.' Rules 701 to 706, Rules of Evidence. Admission of testimony regarding the intoxilyzer test and its results would primarily be governed by Rule 702, which reads as follows:

Testimony by Experts:

If scientific, technical, or other specialized knowledge will assist the trier of fact to understand the evidence or to determine a fact in issue, a witness qualified as an expert by knowledge, skill, experience, training, or education, may testify thereto in the form of an opinion or otherwise.
Cases construing Rule 702 have held that the proponent of evidence based on scientific, technical or specialized knowledge must make a showing of general acceptance under the rule of Frye v. United States, 293 Fed. 1013 (D.C. Cir. 1923). State ex rel. Collins v. Superior Court, 132 Ariz. 180, 644 P.2d 1266 (1982). Also required is a foundational showing by a qualified expert that the accepted technique was properly used and the results accurately measured and recorded.
A.R.S. § 28-692.03(A) provides for admission of what is essentially scientific or technical opinion evidence without the necessity of `a witness qualified as an expert' as required by Rule 702 and cases construing the rule. The case at bench thus requires us to determine whether the legislature may provide procedures for admission of evidence in a manner other than that prescribed by rules which this court promulgates pursuant to the power conferred on it by article 6, § 5(5).
That we possess the rule-making power does not imply that we will never recognize a statutory rule. We will recognize `statutory arrangements which seem reasonable and workable' and which supplement the rules we have promulgated. Alexander v. Delgado, 84 N.M. 717, 718, 507 P.2d 778, 779 (1973). However, when a conflict arises, or a statutory rule tends to engulf a general rule of admissibility, we must draw the line. The legislature cannot repeal the Rules of Evidence or the Rules of Civil Procedure made pursuant to the power provided us in article 6, § 5. Ammerman v. Hubbard Broadcasting, Inc., supra; cf. State v. Herrera, 92 N.M. 7, 582 P.2d 384 (1978).
The question, then, is whether A.R.S. § 28-692.03 is only an alternative method of admitting breath test evidence, or one that flatly contradicts the procedures adopted by the Rules of Evidence.

. . . .

The statutory method is a workable, reasonable method provided as an alternative to the method of admission under the Rules of Evidence. Either party may use either method. [Emphasis added.]
Seidel, 142 Ariz. at 590-91, 691 P.2d at 681-82. The supreme court will recognize statutory evidentiary rules when they are "reasonable and workable," supplementing rather than contradicting the rules promulgated by the court. When a conflict arises between the rules of evidence and a statute, or when a statute engulfs a rule, it cannot be upheld. Barsema v. Susong, 156 Ariz. 309, 314, 751 P.2d 969, 974 (1988).

Rule 802, Arizona Rules of Evidence, reads:

Hearsay is not admissible except as provided by applicable constitutional provisions, statutes, or rules. [Emphasis added.]

In State v. Robinson, 153 Ariz. 191, 197 n. 6, 735 P.2d 801, 807 n. 6 (1987), our supreme court stated:

6. Rule 802 and State v. Ryan, 103 Wn.2d 165, 691 P.2d 197 (1984) are not to the contrary. Ryan upheld a statute nearly identical to A.R.S. § 13-1416 against a rulemaking challenge on the basis that Rule 802 contemplates statutory exceptions to the rule against hearsay. We agree with Ryan, but believe it is premised on the unarticulated assumption that any new statutory exceptions will be consistent with the purpose of the hearsay exceptions set out in Rules 803 and 804. [Emphasis added.]

Arizona Revised Statutes § 13-4310(E)(2), as it applies to the order to show cause hearing, is consistent with the purposes of the hearsay exceptions set out in Rule 803 and Rule 804.

Rule 1101, Arizona Rules of Evidence, provides that the rules apply generally to civil actions and proceedings.

(b) Proceedings generally. These rules apply generally to civil actions and proceedings, to contempt proceedings except those in which the court may act summarily, and to criminal cases and proceedings except as otherwise provided in the Arizona Rules of Criminal Procedure.
(d) Rules inapplicable. The rules (other than with respect to privileges) do not apply to proceedings before grand juries. [Emphasis added.]

Rule 5.4(c), Arizona Rules of Criminal Procedure, provides for hearsay evidence to be used in preliminary hearings. Traditionally, hearsay evidence has been admissible in hearings where probable cause is the only issue. Since hearsay testimony is admissible to prove probable cause in other hearings wherein only preliminary determinations are made, we opine that the statutory exception to the hearsay rule provided in A.R.S. § 13-4310(E)(2) is consistent with the purpose of the hearing exceptions set forth in Rules 803 and 804.

Respondents point out that the state's witnesses were available to testify at the hearing. Therefore, we assume that the witnesses would be available to testify at the trial on the merits. Rule 5.4(c)(3), Arizona Rules of Criminal Procedure, reads:

c. Evidence. The finding of probable cause shall be based on substantial evidence, which may be hearsay in whole or in part in the following forms:

. . . .

(3) The testimony of a witness concerning the declarations of another or others where such evidence is cumulative or there is reasonable ground to believe that the declarants will be personally available for trial. [Emphasis added.]

Although 5.4(c)(3) is a rule of criminal procedure, it is indicative of the type of safeguard required with regard to hearsay evidence in probable cause hearings. That requirement is fulfilled in the present case. There are reasonable grounds to believe that the declarants will be personally available at the trial.

Respondents assert that A.R.S. § 13-4310(E)(2) is not reasonable and workable because it treats the parties to a forfeiture action differently. This is incorrect, at least with respect to order to show cause hearings. There is nothing in the statute which prohibits the claimant from adducing hearsay testimony at those hearings.

Respondents rely on Robinson in which Robinson was charged with two counts of sexual conduct with a minor and two counts of child molestation. The trial court found that the victim was legally unable to testify due to a mental infirmity. Based on this ruling, the court permitted testimony with regard to the victim's out of court statements to be introduced at the trial pursuant to A.R.S. § 13-1416. The court stated:

Although we have previously recognized consistent statutory additions to the rules of evidence, Seidel, supra, Readenour [ v. Marion Power Shovel], supra, [ 149 Ariz. 442, 719 P.2d 1058 (1986)] the reach of our rulemaking authority and the function of the hearsay rules, taken together, severely limit the legislature's authority to manipulate the hearsay rules, particularly in criminal cases where confrontation rights are constitutionally protected.
Robinson, 153 Ariz. at 197, 735 P.2d at 807. Since the present case is not a criminal case, no confrontation rights are involved. Furthermore, Robinson involved a trial on the merits. The order to show cause hearing in the present case was merely a preliminary hearing. Thus, Robinson is inapposite.

State v. Fowler, 156 Ariz. 408, 752 P.2d 497 (App. 1987), cited by respondents, is also inapposite. Rule 32.4(a), Arizona Rules of Criminal Procedure, provides that a petition for post-conviction relief "may be filed at any time after entry of judgment and sentence." (Emphasis added.) In Fowler, the statute in question set a one year time limit for the filing of a petition for post-conviction relief. This court held that the one-year time limit directly conflicted with the rule, and was therefore an unconstitutional invasion of the supreme court's rule-making authority. The statute in question in this case does not conflict with the rules of evidence.

CONCLUSION

Arizona Revised Statutes § 13-4310(E)(2) is a "reasonable and workable" statute supplementing the ruling promulgated by the court. A.R.S. § 13-4310(E)(2) is constitutional. The trial court erred in excluding hearsay testimony in the order to show cause hearing. The stay previously entered is lifted. This case is remanded to the trial court for further proceedings consistent with this opinion.

CONTRERAS, P.J., and EUBANK, J., concur.

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STATE EX REL. WOODS v. FILLER
(Sep 12, 1991)