United States v. David Walsh

                United States Court of Appeals
                    For the First Circuit
                                         

No. 93-1083

                  UNITED STATES OF AMERICA,

                          Appellant,

                              v.

                         DAVID WALSH,

                     Defendant, Appellee.
                                         

         APPEAL FROM THE UNITED STATES DISTRICT COURT

               FOR THE DISTRICT OF RHODE ISLAND

         [Hon. Francis J. Boyle, U.S. District Judge]
                                                    
                                         

No. 93-1328

               IN RE UNITED STATES OF AMERICA,

                         Petitioner.
                                         

              ON PETITION FOR A WRIT OF MANDAMUS
                                         

                            Before

                     Stahl, Circuit Judge,
                                         
         Aldrich and Campbell, Senior Circuit Judges.
                                                    
                                         

Ira Belkin, Assistant  United States Attorney, with whom  Margaret
                                                                  
E.  Curran, Assistant United  States Attorney, and  Lincoln C. Almond,
                                                                 
United States Attorney, were on brief for appellant.
Susan M. Carlin with whom Stephen  R. Famiglietti and  Famiglietti
                                                                  
& Carlin, Ltd. were on brief for appellee.
          
                                         

                       October 27, 1993
                                         

          ALDRICH, Senior Circuit Judge.  This case presents,
                                       

in the words of the  district court, an issue of  "very first

impression  under  the guidelines."    We  believe the  court

correct  as  to  uniqueness,  but  we  would  not  limit this

description to the guidelines.  Having initiated the vacation

of a negotiated  plea at  the time of  sentencing, the  court

nevertheless left defendant with  the benefit of his bargain,

viz.,  free  from  all   related  charges,  an  immunity  the

government  had granted  as consideration  for the plea.   We

concur  in  the  government's  unhappiness at  this  one  way

street.

          Defendant,  an  officer   of  a  mortgage  company,

allegedly  endorsed  a sizeable  check  so as  to  enable the

company  to receive  its  proceeds instead  of  paying off  a

customer's  mortgage.     The  government   investigated  the

possibility of   mail fraud and  other felonies, but,  before

seeking an indictment, discussed the matter with  defendant's

counsel.   In due course  a plea agreement  in customary form

was worked out and  executed.  Basically, defendant consented

to  an information  charging aiding  and abetting  bank fraud

being  filed to which he  would plead guilty,  and waived any

right to withdraw his plea, once entered; the government,  in

return,  would  recommend  a  low  sentence,  and  would  not

institute any additional  charges for defendant's "previously

disclosed criminal conduct  at Medcon Mortgage Corp."  In due

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course, after a  comprehensive examination  of defendant  (16

pages of  transcript that  presented no problems),  the court

accepted  the plea.  Sentencing was twice deferred.  When the

time  came, the  court announced  that it  had read  the pre-

sentence report,  and that  on defendant's interpretation  of

the facts he  was not guilty, and  it would vacate the  plea.

The  government protested,  saying  that  its  interpretation

differed, but the  court was  adamant.  It  is common  ground

that  there  was no  bad faith  in  connection with  the plea

agreement, or any defect  or deficiency in the  acceptance of

the   plea.     Defendant,  however,  accepted   the  court's

suggestion and moved to vacate his plea.  The court did so.

          Whether this was unique -- we will not question the

court's right to vacate  a plea -- the procedure  and outcome

were  entirely so.  Upon the government's stating that on the

vacation of the  plea it would not  be prepared for  trial on

the information, and that it wanted to  go back to square one

and consider  presenting the other  matters to a  grand jury,

the  court responded  that  this would  not  be fair  to  the

defendant.     It  concluded  by  ordering   the  information

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dismissed with  prejudice.1  The government  appeals, and, as

a precaution, also seeks mandamus.

          The  court  opened  the  hearing  saying  that   it

understood  the government  did  not  want  to stay  "in  the

position where you end,  but advancing that position somewhat

in  terms  of  possibly   making  more  charges  against  the

defendant."   The government replied that  if the defendant's

undertaking was  off,  so should  be the  government's.   The

court,  evidently troubled,2 responded  that because  of what

it,  the court, had done,  the defendant may  be facing other

charges "in  spite of  the government's prior  agreement with

him."  To the government's statement,

          All we're asking is  that the Court allow
          the government to go back to the position
          it was in before it filed the information
          in reliance upon the agreement.

the court said,

          The  government  made  a  bargain.    The
          defendant made a bargain.   They're going
          to carry it out.

On analysis "they" meant the government.

                    

1.  We  note in passing that the government at one point said
it  would  move to  dismiss  with  prejudice,  but on  timely
recognizing  that   this  would   be  a  procedural   --  and
substantive -- mistake,  did not do so,  but sought dismissal
without prejudice.  The proceedings were ultimately conducted
on this  later basis.  Defendant's brief  wastes time arguing
the initial non-event.

2.  "I must say the defendant certainly must be wondering how
this  could happen when he's done  nothing to precipitate it.
It's  what  I've   done  that  put  the  defendant   in  this
predicament."

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          The court's  reasoning appears to be  that since it

was the  court's fault  that defendant was  in a  predicament

defendant should not  suffer; hence the government  must.  We

do not agree.  In the first place, it was  not, strictly, the

court's  fault.     Although  the  court   prompted  (to  use

defendant's term) him, it was defendant who moved to withdraw

his  plea,  in  violation of  his  agreement.3    He made  no

attempt to  do otherwise.  He could have.  A court may accept

a  plea even when the  defendant denies his  guilt but thinks

the  plea would  be  to his  advantage.   North  Carolina  v.
                                                         

Alford, 400 U.S. 25 (1970).  But quite apart from this, there
      

was  no reason  why the  government, whose  actions had  been

above-board in every respect, should suffer.

          The government  is  rightly apprehensive  that  the

court  has established  a  flaw in  the whole  plea agreement

process.  Make  a routine, fair,  agreement under which  both

parties give up rights;  have it approved by the court  and a

plea entered after an extensive hearing and, suddenly, at the

sentencing  hearing,   the  court  volunteers  doubts  as  to

defendant's  guilt and  releases defendant's  obligation, but

retains  the government's.  Even  as to the  single charge in

the information the government is subject to the Speedy Trial

                    

3.  "6.  Defendant DAVID  WALSH waives any right that  he may
have to withdraw his plea to the Information once entered."

                             -5-

restrictions that would not have commenced  had it not, based

on defendant's agreement, filed the information.

          A  plea  agreement  is   a  contract,  and  if  the

defendant  violates it  the  government is  no longer  bound.

United  States v.  Gonzalez-Sanchez, 825  F.2d 572,  578 (1st
                                   

Cir.),  cert. denied sub nom., Latorre  v. United States, 484
                                                        

U.S. 989 (1987).   Nor should a court  choose to terminate it

on behalf of the defendant and yet  preserve the government's

obligation.   We can  scarcely accept defendant's  claim that

the government, in asking  for its release, was guilty  of an

"unjustified procedural maneuver" amounting to "prosecutorial

harassment."

          The  court  placed  the  government  in  a  further

difficulty.   If  it  accepted the  court's alternative  from

dismissal with prejudice by proceeding to try the information

and lost, there could  have been a danger of  double jeopardy

as  to  the  other  related  offenses.     United  States  v.
                                                         

Blockburger,  284 U.S. 299, 304  (1932).  On  the other hand,
           

while there appears to be no law on the point, dismissal with

prejudice  might raise  questions of  double jeopardy  or res
                                                             

judicata.   See United States v. Schaffner, 771 F.2d 149, 152
                                          

(6th Cir. 1985).     Defendant   now    contends   that   the

government might  have tested  the court's statement  that it

was bound not to do so, by instituting grand jury proceedings

and  obtaining an indictment.   This would have involved many

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resources,  and,  at  a  minimum,  in  view  of  the  court's

pronouncement, serious  criticism  and a  risk of  sanctions.

The suggestion  scarcely fits defendant's  lament below  that

not to dismiss with prejudice "unfairly prolongs the life  of

the cloud under which defendant and his family have existed."

Manifestly defendant's present  contention would have greatly

prolonged that cloud.

          We have  left jurisdiction to the  last because it,

in turn, may depend upon the answers to the questions we have

already  presented.    The  government  can  appeal  criminal

dismissals under 18 U.S.C.   3731 when they are "inextricably

intertwined"  with a  prior order.   E.g.,  United States  v.
                                                         

Tane, 329 F.2d 848, 851-52 (2d Cir. 1964).  Defendant insists
    

there is not such a relationship between the court's vacating

the  plea agreement  and  the dismissal  with prejudice.   We

would  question that.  In any event we believe the government

has  a right to object.   United States  v. Giannattasio, 979
                                                        

F.2d 98 (7th Cir. 1992).

          It is ordered that the dismissal of the information

is  affirmed, but  changed to  without  prejudice, and  it is

further ordered  that the government's obligations  under the

plea agreement stand vacated.

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