Judicial Council of California Issues Opinion in People Vs. North River Insurance Case

SACRAMENTO, California, Oct. 5 (TNSsro) -- The Judicial Council of California issued the following opinion (No. B306383):

THE PEOPLE, Plaintiff and Respondent, v. THE NORTH RIVER INSURANCE CO. et al., Defendants and Appellants.

APPEAL from a judgment of the Superior Court of Los Angeles County, Victoria B. Wilson, Judge. Reversed.

Jefferson T. Stamp for Defendants and Appellants.

Rodrigo A. Castro-Silva, County Counsel, Kim Nemoy, Assistant County Counsel, and Stephen Watson, Deputy County Counsel, for Plaintiff and Respondent.

The North River Insurance Company (the Company) and Bad Boys Bail Bonds (collectively the North River parties) appeal the superior court's judgment against Bad Boys Bail Bonds in the amount of $6,118.78--representing the costs of extraditing the criminal defendant for whom the North River parties had posted a bail bond, with the Company as the surety and Bad Boys Bail Bonds as the Company's bail agent--plus administrative costs and interest. The North River parties contend the superior court lacked jurisdiction and the judgment is void not only because the bond had already been exonerated by operation of law when the defendant appeared in court but also because the court had no power to impose liability on Bad Boys Bail Bonds arising from the Company's undertaking set forth in the bond. We reverse.

FACTUAL AND PROCEDURAL BACKGROUND

The Company as surety and Bad Boys Bail Bonds as bail agent posted a $35,000 bail bond to secure the release from custody of Jamar Saunders. The bond, which identified the Company as undertaking Saunders's appearance and Bad Boys Bail Bonds as the Company's bail agent, was filed with the superior court on October 13, 2017.

On October 25, 2017 Saunders failed to appear. The superior court ordered the bail forfeited and issued a bench warrant in the amount of $160,000. The October 25, 2017 bail forfeiture filing identified the Company as the "surety/depositor." A notice of forfeiture of surety bond addressed to Bad Boys Bail Bonds was mailed by the court clerk on October 27, 2017 to the North River parties.

According to the superior court's minute order entry for April 30, 2018, "the bail agent" on that date filed a Penal Code section 1305.4/1 motion to extend the 180-day appearance period with respect to the forfeiture of bail. On May 25, 2018 the court signed an order granting the motion "by Bail Agent," "Real Party in Interest, BAD BOYS BAIL BONDS," and ordered the 180-day appearance period extended by an additional period of 180 days from the date of the order to November 21, 2018.

On November 20, 2018 Bad Boys Bail Bonds, whom the court's minute order entry for that date again identified as the "bail agent," filed a section 1035, subdivision (e), motion for an order tolling time on the ground Saunders was in custody in Minnesota on local charges and thus "temporarily disabled by reason of illness, insanity, or detention by military or civil authorities" within the meaning of the statute. On December 14, 2018 the court ordered time on the bond tolled until March 22, 2019.

On March 20, 2019 Bad Boys Bail Bonds filed another section 1035, subdivision (e), motion for an order tolling time on the ground Saunders was being held in custody in Nebraska with a projected release date of August 22, 2019. On March 22, 2019 the court ordered time on the bond tolled until September 13, 2019. The court's March 22, 2019 minute order entry also stated, "At the expiration of the extension/tolling period, if the surety has not filed a timely motion to set aside the forfeiture and exonerate the bond, summary judgment shall be entered and the matter shall be calendared for the bond clerk at 10:00 a.m., on the following court day in accordance therewith. [

] In addition, status hearing has been ordered to be calendared on 09/13/19."

On July 15, 2019 Saunders appeared in custody in Los Angeles Superior Court and pleaded not guilty to grand theft of an automobile (Pen. Code, Sec. 487, subd. (d)(1)) (count 1), driving or taking a vehicle without consent (Veh. Code, Sec. 10851, subd. (a)) (count 2), and fleeing a pursuing peace officer's motor vehicle while driving recklessly (Veh. Code, Sec. 2800.2) (count 3). The court appointed counsel for Saunders, set a date for the preliminary hearing, recalled the bench warrant and set bail at $160,000. On July 29, 2019 Saunders pleaded no contest to counts 1 and 3. The court found him guilty of those two counts, dismissed count 2 pursuant to the plea agreement, and sentenced him to a state prison term of three years.

The court's minute order entry for September 13, 2019 stated the case was called for a motion to vacate bail/bond forfeiture. The minute order entry also indicated a deputy district attorney was present and appearing on behalf of the County of Los Angeles and another attorney, Bradley Petersen, was present and appearing on behalf of the "bail agency and surety." The minute order further stated, "Court reads, considers and grants the notice of motion and motion to vacate forfeiture and exonerate bail. Upon showing good cause: The motion to vacate forfeiture and exonerate bail is granted and [the bond] is vacated, reinstated, and exonerated. [

] Court reserves jurisdiction for costs."

On October 29, 2019 the People filed a section 1306, subdivision (b), motion to recover extradition costs in the amount of $6,118.78 from Bad Boy Bail Bonds. In their motion the People explained the Los Angeles County District Attorney's Office had been notified on April 15, 2019 that Saunders was in custody in Nebraska. At that time the district attorney's office had made the decision to extradite Saunders, and efforts to bring him back to Los Angeles County had commenced. In their motion the People further stated that, on July 11, 2019, two officers of the Los Angeles Police Department had extradited Saunders from Nebraska to Los Angeles County; on July 15, 2019 Saunders had appeared in court; and, because Saunders had been returned to court within the "exoneration period," the People were not opposed to the exoneration of the bond but nevertheless requested the court order Bad Boys Bail Bonds pay the actual cost of extraditing Saunders from Nebraska. Notice of the motion and the motion were mailed to "Jeff Stamp [

] BAD BOY BAIL BONDS."

The court's minute order entry for December 13, 2019 again stated the case was called for a motion to vacate bail/bond forfeiture. The minute order entry indicated the same deputy district attorney who had appeared on September 13, 2019 was present and appearing on behalf of the County of Los Angeles and Petersen was present and appearing on behalf of the "bail agency and surety." The December 13, 2019 minute order further stated, "Court reads and considers the People's motion to award extradition costs. [

] Motion is granted. Order has been signed and filed." The order signed by the court on December 13, 2019 provided in part, "Pursuant to Penal Code Section 1306(b) and prior to relief from forfeiture and exoneration of [the bail bond], Bad Boy Bail Bonds, is hereby ordered to pay $6118.78 which represents the actual cost of extraditing [Saunders] to Los Angeles from" Nebraska.

The court's minutes for April 9, 2020 stated copies of "this minute order" and the signed order for award of extradition costs were mailed to the district attorney's office, as well as to "Jefferson T. Stamp [

] Attorney at Law [

] Bad Boys Bail Bonds."/2

The court's minutes for May 15, 2020 yet again stated the case was called for a motion to vacate bail/bond forfeiture. The May 15, 2020 minutes indicated a deputy district attorney was present and appearing on behalf of the County of Los Angeles and Stamp was present and appearing telephonically on behalf of the "bail agency and surety." The minutes set forth the following language, which also appeared in the judgment signed and filed by the court on May 15, 2020: "Pursuant to Penal Code Section 1305.2,/3 thirty days having lapsed since formal notice was mailed, and no payment of extradition costs being received, this court makes the following order: [

] It is ordered, adjudged, and decreed that summary judgment be entered against Bad Boys Bail Bonds for the amount of $6118.78 plus administrative costs and interest."/4

The minutes also stated copies of "this minute order" and signed judgment were sent to the district attorney's office and "Jefferson T. Stamp [

] Attorney at Law [

] Bad Boys Bail Bonds." An additional entry for the May 15, 2020 minutes further stated an updated minute order had been mailed "on June 15, 2020" to the district attorney's office and to Stamp, "representing the bail agency and surety."/5

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Footnotes:

1/ Statutory references are to this code unless otherwise stated.

2/ The parties in their appellate briefing agree Stamp was the counsel for both the surety and the bail agent. A court minute order entry for March 27, 2020 indicated Stamp appeared on behalf of "the bail agency and surety" for a proceeding in the case at bar.

3/ Section 1305.2 provides, in part, "If an assessment is made a condition of the order to set aside the forfeiture of an undertaking, deposit, or bail under Section 1305, the clerk of the court shall within 30 days mail notice thereof to the surety or depositor at the address of its principal office, mail a copy to the bail agent whose name appears on the bond, and shall execute a certificate of mailing and place it in the court's file in the case. The time limit for payment shall in no event be less than 30 days after the date of mailing of the notice."

4/ The phrase "It is ordered, adjudged, and decreed" was capitalized in the May 15, 2020 judgment.

The judgment, which referred on its caption page to sections 1305.2 and 1306, subdivision (b), also referred to the court's December 13, 2019 order that Bad Boys Bail Bonds pay $6,118.78 for the costs of extraditing Saunders from Nebraska to Los Angeles County, a March 27, 2020 request from Bad Boys Bail Bonds's counsel that formal notice of the costs awarded be sent, and the court clerk's sending formal notice of the costs awarded by mailing copies of the December 13, 2019 minute order and signed order for award of extradition costs to "Jefferson Stamp, Attorney at Law, Bad Boys Bail Bonds."

5/ The May 15, 2020 minutes also contained the following language: "Nunc pro tunc order prepared. It appearing to the court that the minute order in the above entitled action does not properly reflect the court's order. Said minute order is amended nunc pro tunc as of that date. All other orders are to remain in full force and effect."

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View full opinion at https://www.courts.ca.gov/opinions/documents/B306383.PDF