People v. Int'l Fid. Ins. Co., D070060

• Citation: 217 Cal.Rptr.3d 668,11 Cal.App.5th 456
• Decision Date: 21 April 2017
• Docket Number: D070060
• Court: California Court of Appeals
• Parties: The PEOPLE, Plaintiff and Respondent, v. INTERNATIONAL FIDELITY INSURANCE CO., Defendant and Appellant.

11 Cal.App.5th 456

217 Cal.Rptr.3d 668

The PEOPLE, Plaintiff and Respondent,

v.INTERNATIONAL FIDELITY INSURANCE CO., Defendant and Appellant.

D070060

Court of Appeal, Fourth District, Division 1, California.

Filed April 21, 2017

Law Office of John Rorabaugh, John M. Rorabaugh, Fresno, and Robert Tomlin White, San Diego, for Defendant and Appellant.

Thomas E. Montgomery, County Counsel, and Ayriel A. Bland, Deputy County Counsel, for Plaintiff and Respondent.

NARES, J.

Appellant International Fidelity Insurance Co. (Fidelity), acting through its agent King Stahlman Bail Bonds, posted a $100,000 bail bond on behalf of Catalin Gabriel Vaja (defendant) who later failed to make a required appearance. The trial court forfeited the bond under Penal Code ¹ section 1305 and later entered summary judgment against Fidelity. Fidelity appeals from an order denying its motion to set aside the judgment entered on the forfeited bail bond. Fidelity contends that, without its knowledge or consent, the trial court added conditions to defendant's bail that materially increased its risk under the bond. Thus, Fidelity claims the bond should be exonerated. We affirm.

FACTUAL AND PROCEDURAL BACKGROUND

Police arrested defendant on charges of driving under the influence (DUI) ( Veh. Code, § 23152, subd. (a) ), obtaining a subsequent DUI charge within 10 years of previous DUI conviction (Veh. Code, § 23550.5, subd. (a) ), and driving when privilege is suspended or revoked. (Veh. Code, § 14601.1, subd. (a).) Fidelity, though its bail agent, posted a bail bond for defendant's release from custody. The following month, defendant appeared in court for arraignment. The trial court ordered defendant released on bail with conditions to: (1) not drive during the pendency of the case; (2) attend three Alcoholics Anonymous (AA) meetings per week; and (3) abstain from alcohol. Defendant later appeared for his preliminary hearing. At the hearing, the trial court noted that defendant was facing arraignment on a misdemeanor driving case and heard argument from counsel about a "SCRAM" monitoring system which monitors alcohol consumption transdermally and immediately sends a report to the court should defendant consume any alcohol. Instead of raising bail, as an additional condition of the defendant's continued release on the posted bail amount, the court required that defendant enroll in the SCRAM monitoring system within 48 hours.

Defendant failed to appear for trial. The trial court ordered a bench warrant and forfeited the bail bond. The court sent notice of forfeiture to Fidelity. The court later granted an extension of time for defendant to appear. Ultimately, the trial court granted summary judgment on the bond and entered a judgment on the defaulted bond against Fidelity. The court later denied Fidelity's motion to set aside the summary judgment, ruling that "the Defendant in this matter was lawfully required to appear because the Court expressly ordered the Defendant to appear," that "[t]he public safety conditions imposed by the Court did not materially alter the chances of the Defendant's flight risk," and therefore Fidelity "failed to meet its burden." Fidelity timely appealed.

DISCUSSION

I. LEGAL PRINCIPLES

A bail bond is a contract between the government and the surety. Under this contract, the surety acts as guarantor of the criminal defendant's appearance in court and risks forfeiture of the bond if the defendant fails to appear. (People v. American Contractors Indemnity Co. (2004) 33 Cal.4th 653, 657, 16 Cal.Rptr.3d 76, 93 P.3d 1020.) "When a defendant who posts bail fails to appear at a scheduled hearing, the forfeiture of bail implicates not just the defendant's required presence, but constitutes a ‘breach of this contract’ between the surety and the government. [Citation.] Ultimately, if the defendant's nonappearance is without sufficient excuse, it is the surety who ‘must suffer the consequences.’ " (People v. Safety National Casualty Corp. (2016) 62 Cal.4th 703, 709, 199 Cal.Rptr.3d 272, 366 P.3d 57.)

Statutes govern the forfeiture and exoneration of bail. (§ 1305 et seq. ) When a defendant who has been released on bail fails to appear in court as required without a sufficient excuse, the trial court is required to declare bail forfeited. (§ 1305, subd. (a)(1).) Within 30 days of the forfeiture, the court clerk must serve notice of the forfeiture on the surety and its bail agent, and, if the bond amount exceeds $400, the notice of forfeiture must be served by mail. (§ 1305, subd. (b)(1).) The surety has 185 days from the date the notice of forfeiture is mailed (180 days plus five days for service by mail) to obtain relief from the forfeiture on any of the grounds set forth in section 1305. (§ 1305, subd. (b)(1) ; People v. United States Fire Ins. Co. (2015) 242 Cal.App.4th 991, 999, 195 Cal.Rptr.3d 660.) The 185-day period is known as either the "exoneration period" or the "appearance period." (People v. United States Fire Ins. Co. , at p. 1000, 195 Cal.Rptr.3d 660.) The trial court may extend the original 185-day appearance period up to 180 additional days, on motion supported by a showing of good cause. (§ 1305.4.) If the surety fails to obtain relief from the forfeiture within the appearance period, including extensions, the court shall enter summary judgment against the surety on the bond, plus costs. (§ 1306, subd. (a).)

An order denying a motion to set aside the forfeiture of a bail bond is appealable. (People v. Ranger Ins. Co. (1996) 51 Cal.App.4th 1379, 1382, 59 Cal.Rptr.2d 777.) We normally review an order denying a motion to set aside the forfeiture of a bail bond for abuse of discretion. (County of Los Angeles v. American Contractors Indemnity Co. (2011) 198 Cal.App.4th 175, 178, 129 Cal.Rptr.3d 563.) When, however, the issue is one of statutory construction or contract interpretation, and the evidence is undisputed, we review the order de novo. (Ibid. )

II. ANALYSIS

Fidelity argues it did not enter into a bail bond contract that included conditioning defendant's release upon defendant's attendance at three AA meetings per week and his adherence to the restrictions of a SCRAM device. Fidelity asserts that the court's act of placing additional conditions and government control upon defendant's release materially altered the bail bond contract to increase its risks. Additionally, it asserts that the court's failure to provide notice of the additional conditions voided the bail bond contract between it and the court. Accordingly, it claims that the subsequent bail forfeiture and summary judgment are void and must be set aside.

Section 1305 sets forth the statutory grounds for vacating forfeiture and exonerating a bond. (People v. Bankers Ins. Co. (2010) 181 Cal.App.4th 1, 5, 104 Cal.Rptr.3d 87.) Section 1305, however, does not set forth the exclusive bases for vacating a forfeiture. (People v. Bankers Ins. Co. (2016) 247 Cal.App.4th 1004, 1011, 202 Cal.Rptr.3d 607.) Rather, courts must consider the bonding language and "whether the government's actions materially increased the risk that the surety had accepted." (Ibid. ) "[I]f the government materially increases the risk to the surety beyond the express terms of the bond without notice to the surety or the surety's consent, the government violates its contract with the surety, and the surety is entitled to vacation of the forfeiture and exoneration of the bond." (Ibid. ) The surety has the burden of showing, with competent evidence, that a forfeiture of its bail should be set aside. (People v. American Surety Ins. Co. (1999) 75 Cal.App.4th 719, 725, 89 Cal.Rptr.2d 422.) Accordingly, the surety has the burden of showing that the bail conditions materially increased its risks.

In determining the limits of the surety's risk, we look to the provisions of the bond itself, along with applicable statutes. (People v. North Beach Bonding Co. (1974) 36 Cal.App.3d 663, 668, 111 Cal.Rptr. 757, disapproved on other grounds in People v. Safety National Casualty Corp. , supra , 62 Cal.4th at p. 716, fn. 5, 199 Cal.Rptr.3d 272, 366 P.3d 57.) We apply the de novo standard of review because the issues turn on the terms of the bail contract and the relevant evidence is not in dispute. (County of Los Angeles v. American Contractors Indemnity Co. , supra , 198 Cal.App.4th at p. 178, 129 Cal.Rptr.3d 563.) The bond issued by Fidelity provides in relevant part:

"Now, the INTERNATIONAL FIDELITY INSURANCE COMPANY, a New Jersey corporation, hereby undertakes that the above-named defendant will appear in the above-named court on the date set forth to answer any charge in any accusatory pleading based upon the acts supporting the complaint filed against him/her and all duly authorized amendments thereof, in whatever court may be prosecuted, and will at all times hold him/herself amenable to the orders and process of the court , and if convicted, will appear for pronouncement of judgment or grant of probation; or if he/she fails to perform either of these conditions, that the INTERNATIONAL FIDELITY INSURANCE COMPANY, a New Jersey corporation, will pay the People of the State of California, the sum of [$100,000]." (Italics added.)

The trial court has discretion to "set bail on the terms and conditions [it] deems appropriate." (§ 1269c.) Specifically, the trial court has the power to impose reasonable bail conditions intended to ensure public safety. (Gray v. Superior Court (2005) 125 Cal.App.4th 629, 642, 23 Cal.Rptr.3d 50.) The question presented is whether the court's act of conditioning bail on defendant not driving during the pendency of the case, attending three AA meetings per week, abstaining from alcohol, and adhering to the restrictions of a SCRAM device materially increased the risk to Fidelity beyond that contemplated by the express language of the bond. As we shall explain, Fidelity has not established that these conditions materially increased its risk.

As a preliminary matter, we reject Fidelity's...