Estate of Jamis J. Lott v. Robin O'Neill
Estate of Jamis J. Lott v. Robin O'Neill
Opinion of the Court
¶ 1. This interlocutory appeal presents the question of whether the Sixth Amendment right to assistance of counsel is violated when the plaintiff in a civil wrongful death action attaches funds the defendant *1101intends to use for her legal defense to homicide charges stemming from the death at issue in the civil case. Defendant appeals a trial court decision permitting such an attachment. We affirm.
¶ 2. The relevant facts are as follows. Defendant is charged with aggravated murder and two counts of murder in the second degree in the deaths of two men. Her trial is pending and a private law firm represents her in that matter. Plaintiff is the estate of one of the deceased men, which pursuant to 14 V.S.A. § 1492 has brought a wrongful death action on behalf of the next of kin. In its filing, plaintiff obtained an attachment freezing defendant's assets, including the retainer she provided for her criminal defense.
¶ 3. In response, defendant filed a motion arguing that a recent U.S. Supreme Court case, Luis v. United States , --- U.S. ----,
¶ 4. In the same decision, the court granted defendant leave to appeal its interlocutory ruling pursuant to Vermont Rule of Appellate Procedure 5.1, which permits interlocutory appeals when an order "(A) conclusively determines a disputed question; (B) resolves an important issue completely separate from the merits of the action; and (C) will be effectively unreviewable on appeal from a final judgment." V.R.A.P. 5.1(a)(1). This appeal followed.
¶ 5. We review questions of law de novo. Smith v. Desautels ,
¶ 6. There is no majority opinion in Luis . Justice Breyer's four-justice plurality opinion adopted the broadly framed question presented in Luis' petition for certiorari: "whether the pretrial restraint of a criminal defendant's legitimate, untainted assets (those not traceable to a criminal offense) needed to retain counsel of choice violates the Fifth and Sixth Amendments."
¶ 7. That analysis began with the Sixth Amendment, which guarantees that "[i]n all criminal prosecutions, the accused shall enjoy the right ... to have the Assistance of Counsel for his defense." U.S. Const. amend. VI. This right is echoed in our state constitution, which provides that "in all prosecutions for criminal offenses, a person hath a right to be heard ... by counsel."
¶ 8. The plurality's conclusion that the Sixth Amendment bars the freezing of untainted funds under the facts of Luis turns on a primary point, a point which also supports our conclusion that Luis does not control here. In Luis , the government was exercising a statutory right to forfeiture connected to a criminal prosecution, and the freezing of assets was done to ensure that property to be frozen was available for forfeiture at the end of the criminal case if the government secured a conviction. That right turns on an elementary tenet of property law.
¶ 9. The plurality drew support for its conclusion from precedent, common law, and policy. As to precedent, two prior decisions lay the foundation for the Luis plurality decision. One of those is especially relevant here. In Caplin & Drysdale , the client of the appellant law firm was charged with multiple counts of drug distribution.
¶ 10. Caplin & Drysdale stands for the proposition that a statutorily authorized forfeiture of money held for legal representation in the underlying criminal case is permitted because it is the exercise of a legitimate property interest. As explained by Luis , no Sixth Amendment conflict is created because the funds taken illegally from the government were, and are, the government's property irrespective of the criminal's possession of them.
¶ 11. Turning to consideration of the common law, the plurality quoted and cited Blackstone for the eighteenth-century rule that a person may freely sell his property before conviction and it is only post-conviction that the government has any right to seize the convict's "goods and chattels." Luis , --- U.S. at ----,
¶ 12. This conclusion alone was sufficient for Justice Thomas, who concurred on that basis.
¶ 13. Finally, the plurality reasoned that permitting seizure of untainted assets would "render less effective the basic right the Sixth Amendment seeks to protect" by increasing public defender caseloads because defendants otherwise able to pay for private representation would be rendered indigent through forfeiture.
¶ 14. The plurality ultimately placed the considerations discussed above in a balancing test, balancing the Sixth Amendment right of the criminal defendant against the government's right to forfeiture to recoup the criminal penalty and its losses.
¶ 15. With the rationale of the plurality and concurrence in Luis in mind, we turn to whether the Sixth Amendment is violated by the attachment order in this case. In support of her position, defendant argues that the circumstances that created the Sixth Amendment violation the U.S. Supreme Court found were present in Luis are also present here. The court order in this case results in a freezing of defendant's funds designated for defense of the criminal case, and the funds are entirely "untainted"-that is, they are not fruits of the alleged criminal case.
¶ 16. It is important to recognize that this is neither a forfeiture case nor a criminal case. Nothing in the Luis plurality or concurrence suggests a holding applicable outside the context of remedies created by a criminal proceeding and the ultimate conviction, particularly asset forfeiture and its unique reliance on property interests.
*1105Thus, there are significant differences between the context, facts, and law in this case and those in Luis , and these are unexplored in any of the Luis opinions. Our conclusion is that the differences lead to a different result.
¶ 17. In Luis , the United States was both the prosecutor of the criminal case and the victim of the alleged crime. The security procedure employed was an adjunct to the criminal proceeding and could result in forfeiture only if the defendant was convicted. The Court described it as follows:
The [g]overnment here seeks a somewhat analogous order, i.e. , an order that will preserve Luis' untainted assets so that they will be available to cover the costs of forfeiture and restitution if she is convicted , and if the court later determines that her tainted assets are insufficient or otherwise unavailable.
¶ 18. Here, although this action may arise out of a core of facts in common with the criminal case, there is no connection between the criminal proceeding and this private tort action. The State is not a party in this action and is not seeking any relief here. The plaintiff is using a temporary and pretrial security device that is generally available in any civil damage suit if plaintiff can show need and probability of success in the litigation. Plaintiff is in the position of a creditor ensuring that it will be able to collect on a civil money judgment.
¶ 19. Unlike the common law background of forfeiture in criminal cases, where preconviction restraint of property subject to forfeiture was not allowed, we are dealing here with a pretrial security procedure, the use of which stretches back into the English law before the founding of the United States.
¶ 20. A criminal defendant's ability to hire a lawyer of choice to defend a criminal proceeding depends, as this case demonstrates, on having the funds necessary to pay a lawyer. There are many reasons why such funds may be unavailable including that the defendant is in debt, for example, for necessities that cannot be ignored. In essence, defendant's position is that private creditors are required to bear the criminal defense costs of debtors who are criminal defendants because the debtor has a right to counsel in the criminal proceeding. That right is against the state and not private creditors.
¶ 21. Defendant suggests that the right being enforced in this civil proceeding exists because it is related to the criminal proceeding for which defendant needs to protect the ability to fund defense costs. That rationale is perverse. In essence, it requires that victims, uniquely, subsidize the criminal defense costs of the accused by foregoing the ability to collect some of their civil damages from the accused. We see no justification for treating plaintiff any differently than any other creditor in civil damage litigation, and the effect would be to add another exemption from execution and levy to the many already provided by Vermont law.
¶ 22. The plurality in Luis ultimately decided that case by balancing the defendant's Sixth Amendment right against the government's right to obtain property to pay itself back for loss caused by the defendant's crime. We need not reach a balancing test to decide this case. If we did, we would conclude that the result of balancing in this context is different than in Luis . As we stated above, the common law basis for plaintiff's action is different and includes a stronger interest for plaintiff here. Moreover, plaintiff's pretrial remedy has a clear bright-line stopping point largely because defendant's due process rights are not reduced simply because she is a criminal defendant. See Connecticut v. Doehr ,
Affirmed .
This decision includes a plurality opinion written by Justice Breyer and joined by Chief Justice Roberts and Justices Ginsburg and Sotomayor; a concurring opinion written by Justice Thomas; a dissent written by Justice Kennedy and joined by Justice Alito; and a dissent written by Justice Kagan. The opinions written by Justices Breyer, Thomas, and Kennedy are discussed infra .
Though our state constitution includes a right to the assistance of counsel, neither party has argued that this right precludes the attachment at issue here. Thus, we do not consider whether the state constitution could bar the action plaintiff seeks. We confine our analysis to the federal constitution and the Luis decision that defendant argues controls.
We note that to date the cases applying the Luis holding have read this decision to bar seizure of untainted assets within the context of a federal forfeiture statute. See, e.g., United States v. Jones ,
The origin of prejudgment attachment and trustee process laws in the United States starts with the Custom of London of Foreign Attachment, which arose in the 17th century. See C. Drake, A Treatise on the Law of Suits by Attachment in the United States Ch. I, § 1, at 1 (7th ed. 1891); R. Wasserman, Equity Renewed: Preliminary Injunctions to Secure Potential Money Judgments ,
We note that three states have by statute exempted attorney's fees paid in defense of a criminal case from forfeiture in connection with that case, essentially implementing, at least in part, the holding of Luis . See 725 Ill. Comp. Stat. 5/124B-145 (2016);
We acknowledge that plaintiff has raised several other arguments on appeal that are claimed to support the attachment sought. The interlocutory order we review here addressed the sole question of whether Luis applied. Thus, we do not address plaintiff's other arguments.
Dissenting Opinion
¶ 23. I conclude that the plurality's guidance in Luis v. United States , --- U.S. ----,
¶ 24. The Luis decision does not mandate a particular outcome in this case. Nevertheless, the reasoning in the plurality opinion is instructive and persuasive with respect to the issue in this case. Plaintiff in this case stands in much the same shoes as the government did in Luis , and the considerations underlying the plurality's resolution of the conflict between the government's statutory rights in that case and the defendant's Sixth Amendment interests apply in this case as well. The consequences of this analysis are burdensome for plaintiff in this case, and for any civil litigant seeking to attach a criminal defendant's untainted assets, but that burden is not dissimilar to other legal impediments to pretrial attachments, and flow from the weight afforded defendant's fundamental constitutional right.
¶ 25. Luis does not establish binding precedent with respect to this case for two reasons. First, Luis was resolved with a plurality opinion on behalf of four Justices and a concurring opinion on behalf of one. Ordinarily, we determine the binding precedential effect of such a decision by following the narrowest holding among the plurality opinions. State v. Atlantic Richfield Co. ,
¶ 26. Nevertheless, the plurality's language and reasoning in Luis provide persuasive support for defendant's argument that the attachment below violates her Sixth Amendment rights. The plurality did not frame the central question in the case as turning on the government's unique status or on the historical pedigree of the statute pursuant to which the government sought to freeze defendant's assets; rather, it stated, "[t]he question presented is '[w]hether the pretrial restraint of a criminal defendant's legitimate, untainted assets (those not traceable to a criminal offense) needed to retain counsel of choice violates the Fifth and Sixth Amendments.' " Luis , --- U.S. at ----,
¶ 27. More important than the plurality's word choice in defining the issue before it is the plurality's rationale in deciding that case. Almost every step in the Luis plurality's analysis applies with equal force to the circumstances of this case.
*1108¶ 28. Writing for the Luis plurality, Justice Breyer started by explaining that the Sixth Amendment right to counsel includes a defendant's "right to be represented by an otherwise qualified attorney whom that defendant can afford to hire."
¶ 29. Next, the plurality described the critical distinction between a pretrial freeze of tainted assets, which are subject to pretrial statutory forfeiture even if the forfeiture undermines a criminal defendant's right to hire counsel of the defendant's choosing, and untainted assets, which required further analysis.
¶ 30. The assets at issue here are undisputedly "untainted." They are not the fruits of defendant's alleged crimes; nor was she alleged to have used them in the commission of the crime. As with the untainted assets at issue in Luis , there is no principle of common law or statute that provides that, by operation of law, title to the untainted assets belongs to someone else. Plaintiff is not simply analogous to an unsecured creditor (or potential unsecured creditor) seeking to impose restrictions on untainted property to secure a possible future judgment; she is a potential unsecured creditor seeking just that. The second step in the Luis plurality's analysis applies with the same force here: the assets in question here are untainted, so the U.S. Supreme Court's prior decisions authorizing restraints on tainted assets provide no support for plaintiff's claims here.
¶ 31. The plurality accordingly focused its analysis on the conflict between the government's statutory authority to restrain innocent "property of equivalent value" to that of tainted property and the defendant's Sixth Amendment rights by *1109comparing the government to a civil claimant in similar circumstances.
¶ 32. The plurality offered three considerations in support of its conclusion that the Sixth Amendment prohibits the court order that the government sought pursuant to its statutory authority. First, the plurality balanced the interests at stake and concluded that the defendant's Sixth Amendment right outweighed the government's interest in freezing assets to cover potential future penalties or restitution orders.
¶ 33. The balance in this case is similar. If anything, plaintiff's interests are weaker than the government's in Luis . In that case, the government had dual interests: it sought to secure future penalties and secure restitution for the victims from the defendant's funds. In this case, plaintiff's interest is nearly identical to the latter of the government's dual interests. Plaintiff seeks to secure a potential future judgment to compensate the estate for injuries it suffered at defendant's hands. Like the government's interest in securing a potential future restitution order for the victim, plaintiff's interest in securing a potential future judgment is substantial, but it is still outweighed by the constitutionally grounded right to counsel of choice.
¶ 34. The majority's approach here would give a credit card company seeking to collect a past due obligation the ability to freeze funds in a lawyer's trust account to secure a potential judgment, while frustrating a criminal defendant's Sixth Amendment right to counsel. How would a lawyer ever know whether a criminal defendant client's retainer would remain *1110available to pay for the lawyer's representation? By eschewing a balancing test altogether, the majority avoids grappling with the severe consequences of its position with respect to a fundamental constitutional commitment.
¶ 35. The plurality's second consideration was the absence of any legal tradition supporting the preconviction seizure of innocent property with no connection to the charged crime.
¶ 36. The plurality's final consideration was that allowing a restraint of the untainted property the defendant needed to pay for counsel "could well erode the right to counsel to a considerably greater extent than we have so far indicated."
¶ 37. In sum, the lion's share of the plurality's analysis in Luis is persuasive, and fully applicable in this case. Although one of the plurality's considerations does not apply in this case, the plurality opinion does not rest on that consideration, and the rest of its analysis reinforces that the government in that case was in the same position as a private litigant seeking security for a possible future judgment.
¶ 38. It's true that this ruling may limit the ability of crime victims, or any other potential civil creditor with claims against a criminal defendant, to secure potential civil judgments in their favor from the untainted assets of the defendant. Parties seeking to attach untainted assets in civil court face numerous obstacles to their ability to secure potential future judgments. They cannot attach a debtor's homestead up to a limit of $125,000 in value, 27 V.S.A. § 101 ; a debtor's interest in a motor vehicle up to $2500, 12 V.S.A. § 2740(1) ; or a debtor's professional or trade books or tools up to $5000 in value, 12 V.S.A. § 2740(2). Insurance payments of various sorts, 8 V.S.A. §§ 3706 - 3709, unemployment compensation benefits, 21 V.S.A. § 1367, and veteran's benefits,
¶ 39. For these reasons, I would reverse the trial court. I would treat funds reasonably necessary for defendant's criminal defense by a lawyer of her choice whom she can afford to pay as exempt from the court's attachment, and would authorize attachment of those funds only to the extent that they are not reasonably necessary to her criminal defense.
¶ 40. I am authorized to state that Justice Eaton joins this dissent.
In addition to the statutory exemptions, many decisions hold that the rules of discovery preclude a plaintiff from inquiring into a defendant's financial circumstances unless the plaintiff has alleged a viable claim for punitive damages. This is because "[e]vidence of wealth is irrelevant and prejudicial in most instances." Campen v. Stone ,
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