COURT OF APPEALS OF VIRGINIA
Present: Judges Haley, Alston and Senior Judge Clements
Argued at Alexandria, Virginia
DAVID LEE TESTERMAN
OPINION BY
v. Record No. 2823-09-4 JUDGE JAMES W. HALEY, JR.
OCTOBER 5, 2010
COMMONWEALTH OF VIRGINIA
FROM THE CIRCUIT COURT OF FAUQUIER COUNTY
Herman A. Whisenant, Jr., Judge Designate
Kevin J. Gerrity, Senior Assistant Public Defender (Office of the
Public Defender, on brief), for appellant.
Craig W. Stallard, Assistant Attorney General (Kenneth T.
Cuccinelli, II, Attorney General, on brief), for appellee.
I. INTRODUCTION
The construction fraud statute, Code § 18.2-200.1, requires a person to receive an
advance “upon a promise to perform construction.” Appealing his convictions under this statute,
David Lee Testerman argues the evidence failed to prove he promised to perform construction
since the advances he received paid only for supplies, not labor. He maintains he only promised
to obtain supplies. We hold a person receiving an advance for supplies obtains an advance under
this statute where the advance comes as a result of, or because of, a promise to perform
construction. As Testerman’s conduct meets this standard, we affirm.
II. BACKGROUND
Beginning in the summer of 2002, the Kinney family hired Testerman to perform
construction work. As part of bathroom renovations in their home, the Kinneys decided to install
new countertops. Testerman received an advance of $1,300 to purchase the countertops.
However, the countertops never arrived and Testerman did not return the money.
The Kinneys also employed Testerman to work on a townhouse they owned in Ocean
City, Maryland. Testerman received an advance of $1,800 to buy new patio doors. The doors
did not come, and Testerman did not return this money.
In the case of both the countertops and the doors, the Kinneys intended the advances to
pay only for supply costs, not labor. The Kinneys compensated Testerman for his labor at an
hourly rate and paid him as he performed the work.
Testerman was to install the countertops and doors. At trial, Mrs. Kinney was
questioned: “And he was to install the countertops himself?” She responded: “Yes.” A letter
demanding repayment admitted without objection at trial declared concerning the countertops:
“You stated you would work at my house the weekend of November 9 and 10, and that you
would ‘take care of everything.’ You stated that you would positively complete the job this
week the week before Thanksgiving.” Mr. Kinney was asked at trial about the patio doors: “So
he was to install them as well?” He replied: “Yeah. I would have him install them, sure, or I
would help with it.” The demand letter also wrote: “I paid you $1800.00, on October 2, 2002,
for French doors that you were to help install in a townhouse I own in Ocean City, Md. We
planned several weekends to work, but the doors never arrived.”
A jury convicted Testerman of construction fraud based on these failures. He now
appeals.
III. ANALYSIS
Testerman argues he did not obtain the advances “upon a promise to perform
construction” within the meaning of Code § 18.2-200.1. He argues that since the advances paid
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only for supplies, not labor, he did not promise to perform construction, but rather promised to
purchase supplies. 1 We hold Testerman’s actions fall within the statute.
A. Standard of Review
On appeal, we view “the evidence in the light most favorable to the Commonwealth, the
prevailing party in the circuit court, and we accord the Commonwealth the benefit of all
reasonable inferences deducible from the evidence.” Britt v. Commonwealth, 276 Va. 569, 573,
667 S.E.2d 763, 765 (2008). We ask only if “‘after viewing the evidence in the light most
favorable to the prosecution, any rational trier of fact could have found the essential elements of
the crime beyond a reasonable doubt.’” Maxwell v. Commonwealth, 275 Va. 437, 442, 657
S.E.2d 499, 502 (2008) (quoting Jackson v. Virginia, 443 U.S. 307, 319 (1979)). We “will
affirm the judgment unless the judgment is plainly wrong or without evidence to support it.”
Bolden v. Commonwealth, 275 Va. 144, 148, 654 S.E.2d 584, 586 (2008).
On the other hand, statutory interpretation involves de novo review. Wright v.
Commonwealth, 275 Va. 77, 80-81, 655 S.E.2d 7, 9 (2008). Statutory interpretation aims
primarily to determine legislative intent. Commonwealth v. Zamani, 256 Va. 391, 395, 507
S.E.2d 608, 609 (1998). “In determining that intent, words are to be given their ordinary
meaning, unless it is apparent that the legislative intent is otherwise.” Phelps v. Commonwealth,
275 Va. 139, 142, 654 S.E.2d 926, 927 (2008). We strictly construe penal statutes against the
Commonwealth, Jones v. Commonwealth, 276 Va. 121, 124, 661 S.E.2d 412, 414 (2008), but
1
In arguing a motion to strike at trial, counsel stated: “I also have a problem with this
being a construction fraud charge because . . . [Mr. Kinney] testified that that was for materials
only.” Counsel continued: “Again, what we have here is some testimony that that check is not
for labor but specifically for a countertop. Now, this might fall under [a false pretenses charge],
Your Honor, but definitely not a construction fraud charge.” In renewing the motion at the end
of the case, counsel argued: “In the case that Mr. Testerman’s facing here the door is in question
and the countertops. Those payments were paid in advance exclusively so that Mr. Testerman
could get a discount and that those goods be delivered, goods being the operative word, Your
Honor.”
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“will not apply ‘an unreasonably restrictive interpretation of the statute’ that would subvert the
legislative intent expressed therein,” Armstrong v. Commonwealth, 263 Va. 573, 581, 562
S.E.2d 139, 144 (2002) (quoting Ansell v. Commonwealth, 219 Va. 759, 761, 250 S.E.2d 760,
761 (1979)).
B. Application
Code § 18.2-200.1 provides:
If any person obtain from another an advance of money . . .
with fraudulent intent, upon a promise to perform construction,
removal, repair or improvement of any building or structure
permanently annexed to real property, or any other improvements
to such real property . . . and fail or refuse to perform such
promise, and also fail to substantially make good such advance, he
shall be deemed guilty of the larceny of such money . . . if he fails
to return such advance within fifteen days of a request to do so sent
by certified mail, return receipt requested, to his last known
address or to the address listed in the contract.
The statute requires an advance be paid “upon a promise to perform construction.” Id.;
see also McCary v. Commonwealth, 42 Va. App. 119, 126, 590 S.E.2d 110, 114 (2003) (noting
an element of the offense is “a promise to perform construction or improvement involving real
property”). Obviously, advances given for materials alone, unaccompanied by any promise of
labor, do not fall within the statute. Yet we believe the statute does encompass advances
provided for materials to be purchased for construction work where the person receiving the
advance has also promised to perform construction.
First, it has importance that the statute places the word “upon” before “a promise to
perform construction” to describe when the advance must occur. According to the dictionary,
two possible definitions of “upon” include “a beginning course of action or an action or
condition that is a beginning” and “immediately following on: very soon after.” Webster’s Third
New Int’l Dictionary of the English Language Unabridged 2518 (2002). These definitions reveal
the advance must come as a result of, or because of, a promise to perform construction. A
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person promises to perform construction work and receives an advance as a result. The advance
may facilitate the work by providing funds to buy materials for use in the construction. It is not
necessary that the advance pay directly for labor expenses.
Second, advances for supplies represent a common part of construction work that the
General Assembly undoubtedly had in mind when writing the statute. This Court has found “that
the underlying intent of the statute is to prohibit the fraudulent receipt of funds for construction
work involving buildings or other structures permanently annexed to real property.” Boothe v.
Commonwealth, 4 Va. App. 484, 490, 358 S.E.2d 740, 744 (1987). If we were to hold that
advances paid for materials within construction work did not fall within the statute, we would
exclude many instances the General Assembly plainly intended to cover. While we have not
directly addressed this issue before, the facts of our cases demonstrate the frequency of advances
for this purpose. See, e.g., Holsapple v. Commonwealth, 39 Va. App. 522, 531, 574 S.E.2d 756,
760 (2003) (en banc) (stating an advance was given for roof trusses); Mughrabi v.
Commonwealth, 38 Va. App. 538, 548, 567 S.E.2d 542, 547 (2002) (noting the defendant
“demanded advances for supplies that were never purchased”); Klink v. Commonwealth, 12
Va. App. 815, 818, 407 S.E.2d 5, 7 (1991) (stating the defendant ordered a door after receiving
an advance); Boothe, 4 Va. App. at 485, 358 S.E.2d at 741 (mentioning an advance given for a
septic system).
Thus, in determining whether an advance triggers the construction fraud statute, the
relevant inquiry is the scope of the promise. We consider whether a defendant received an
advance as a result of construction he promised to perform. 2
2
This test makes clear, for example, that an advance for a supply of bricks would fall
within the statute if the person receiving the advance had also promised to install the bricks, even
if the advance did not pay for labor. On the other hand, if the person receiving the advance
promised to do nothing but supply bricks, the advance would not trigger the statute. Otherwise,
any supply contract could constitute construction fraud.
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There is no dispute in this case that Testerman received advances to purchase materials.
Thus, the remaining issue concerns whether he obtained the advances as a result of promises to
perform construction.
A promise is defined: “The manifestation of an intention to act or refrain from acting in a
specified manner, conveyed in such a way that another is justified in understanding that a
commitment has been made; a person’s assurance that the person will or will not do something.”
Black’s Law Dictionary 1332 (9th ed. 2009). “It is a word in free and common use.” Richmond
Eng’g & Mfg. Corp. v. Loth, 135 Va. 110, 151, 115 S.E. 774, 786 (1923) (internal quotation
marks omitted).
Viewing the evidence in the light most favorable to the Commonwealth, the jury could
conclude Testerman received the advances because of promises to perform construction.
Concerning the countertops, Mrs. Kinney was asked: “And he was to install the countertops
himself?” She responded: “Yes.” A demand letter delivered to Testerman stated regarding the
countertops: “You stated you would work at my house the weekend of November 9 and 10, and
that you would ‘take care of everything.’ You stated that you would positively complete the job
this week the week before Thanksgiving.” Concerning the patio doors for the Ocean City
project, Mr. Kinney was asked: “So he was to install them as well?” He replied: “Yeah. I
would have him install them, sure, or I would help with it.” The demand letter also recorded: “I
paid you . . . for French doors that you were to help install in a townhouse I own in Ocean City,
Md. We planned several weekends to work, but the doors never arrived.” This evidence
permitted the jury to find Testerman received the advances because of construction he promised
to perform. Although the advances directly paid for materials, not labor, it sufficed that
Testerman obtained them as a result of promises to perform construction.
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For the foregoing reasons, the judgment of the trial court is affirmed.
Affirmed.
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