HSC reins in restitution awards and prosecutors at the grand jury

 State v. Borge (HSC March 15, 2023)

Background. On November 5, 2019, Maui police officers responded to the Paia Youth and Cultural Center between Baldwin Beach and Paia Bay. They found the complainant had suffered serious injuries after Borge struck him on the head several times with a piece of wood. Borge was arrested. The prosecution went to the grand jury and called Detective Dennis Clifton. Det. Clifton testified he investigated the case and met with Borge after he was arrested. The following exchange took place:

 

Q.      . . . . Did you notice any injuries to Mr. Borge?

A.      No.

Q.      None to his head, arms, anyplace?

A.      No, sir.

Q.      Okay. And you didn’t take any statement from Mr. Borge?

A.      We attempted to question him, but he requested to speak to an attorney.

 

After Det. Clifton finished testifying, the prosecutor said, “[b]efore I proceed, Detective Clifton testified Mr. Borge was asking for an attorney. I’m going to advise the grand jury that you’re not to consider that information in your deliberation.” The grand jury returned a true bill of indictment charging Borge with attempted second-degree murder. Borge moved to dismiss the second indictment for improperly eliciting testimony about his right to remain silent. The circuit court, with the Hon. Judge Kelsey T. Kawano presiding, denied the motion.

 

Borge pleaded no contest to assault in the first degree and reserved the right to appeal from the denial of the motion to dismiss. A presentence investigation (PSI) was ordered. The prosecution filed an addendum including 115 pages of billing from the Maui Memorial hospital. The bills totaled $1,461,444.01 even though some of were paid by AlohaCare, a medical insurance provider, and other adjustments and write-offs were made. Over Borge’s objection, the circuit court awarded the entire amount in restitution and sentenced him to prison for ten years. He appealed. The ICA affirmed. The HSC accepted Borge’s writ of certiorari.

 

Testimony about the right to remain silent violates the due process right to a fair and impartial grand jury. “No person shall be deprived of life, liberty or property without due process of law[.]” Haw. Const. Art. I, Sec. 5. Due process requires a fair and impartial grand jury hearing. State v. Rodrigues, 63 Haw. 412, 417, 629 P.2d 1111, 1115 (1981). Prosecutorial misconduct “is a legal term of art that refers to any improper action committed by a prosecutor, however harmless or unintentional.” State v. Williams, 146 Hawai'i 62, 72, 456 P.3d 135, 145 (2020). Prosecutorial misconduct undermining the fundamental fairness and integrity of the grand jury process is presumptively prejudicial. State v. Wong, 97 Hawai'i 512, 517-518, 40 P.3d 914, 919-920 (2002).

 

There is also the constitutional right against self-incrimination. No person shall “be compelled in any criminal case to be a witness against oneself.” Haw. Const. Art. I, Sec. 10. It is “an established doctrine of our civilized society.” Brown v. Walker, 161 U.S. 591, 637 (1896). It is sacrosanct and “[t]here is nothing more basic and more fundamental than that the accused has a constitutional right to remain silent, and the exercise of this privilege may not be used against” them. State v. Mainaaupo, 117 Hawai'i 235, 252, 178 P.3d 1, 18 (2008).

 

The right against self-incrimination prohibits the prosecution from adducing evidence of or commenting on a person’s exercise of the right. State v. Beaudet-Close, 148 Hawai'i 66, 72-73, 468 P.3d 80, 86-87 (2020). Moreover, prosecutors cannot directly or indirectly imply guilt through witness testimony about the right to remain silent. State v. Tsujimura, 140 Hawiai 299, 315-318, 400 P.3d 500, 516-519 (2017). Whether the prosecution’s presentation of evidence at trial infringes upon the accused’s right against self-incrimination depends on “whether the prosecutor intended for the information elicited to imply the defendant’s guilt or whether the character of the information suggests to the factfinder that the defendant’s prearrest silence may be considered as inferential evidence of the defendant’s guilt.” Id. at 315, 400 P.3d at 516.

 

The HSC extends the test to grand jury proceedings. The HSC extended these rights to grand jury proceedings:

 

[W]e hold that in the grand jury context, the test is whether the prosecutor intended for the information elicited to imply probable cause exists or whether the character of the information suggests to the jurors that the accused’s silence may be considered as inferential evidence to find probable cause.

 

The HSC held that it did not matter if the prosecution anticipated Det. Clifton’s response. The character of the evidence was clearly improper and the prosecutor adduced evidence that Borge refused to give a statement to the police. The prosecutor should have never asked the question in the first place. The HSC held this was a “flagrant violation of Borge’s due process rights” and the circuit court erred in denying the motion to dismiss.

 

The prosecutor’s advisement was not a curative instruction. In a footnote, the HSC rejected the prosecution’s claim that the prosecutor’s advisement at the end of Det. Clifton’s testimony was a curative instruction. According to the HSC, a curative instruction can “sometimes” remedy prosecutorial misconduct, but a “cure” generally comes from the judge, not the prosecutor. HRS § 616-16(d) requires the court—not the prosecutor—to give grand jurors information on the law as it deems necessary and proper. Furthermore, the HSC held that the “advisement” was not a cure at all.

 

The restitution award was erroneous. Restitution in criminal cases comes from HRS § 706-646:

 

(1) As used in this section, “victim” includes any of the following:

(a) The direct victim of a crime . . .;

. . . .

(c) A governmental entity that has reimbursed the victim for losses arising as a result of the crime or paid medical care provided to the victim as a result of the crime[.]

. . . .

(2) The court shall order the defendant to make restitution for reasonable and verified losses suffered by the victim or victims as a result of the defendant’s offense when requested by the victim. . . .

(3) . . . Restitution shall be a dollar amount that is sufficient to reimburse any victim fully for losses, including but not limited to:

. . . .

(b) Medical expenses, which shall include mental health treatment, counseling, and therapy;

          . . . .

(d) Lost earnings, which shall include paid leave.

 

The HSC found two errors below.

 

Restitution is limited to amounts claimed by victims, not their family, the insurance company, or the hospital. A “victim” that can make a restitution claim is ether the “direct victim of a crime” or a “governmental entity that has reimbursed the victim for losses arising as a result of the crime or paid for medical care provided to the victim as a result of the crime[.]” HRS § 706-646(1)(a) & (c). The complainant here is the direct victim of the crime. But it does not include Maui Memorial or AlohaCare.

 

Moreover, the “victim” has to make the claim pursuant to HRS § 706-646(2). See State v. Demello, 136 Hawai'i 193, 196, 361 P.3d 420, 423 (2015). In this case, the circuit court awarded close to $1.4 million in restitution to complainant even though the complainant did not request restitution for the medical bills. The record shows that the claim came from the complainant’s mother. That alone warranted vacating the restitution order.

 

The amount itself is not a reasonable and verified loss. Even if the victim did claim it, restitution is limited to “reasonable and verified losses” incurred by the victim. State v. Demello, 136 Hawai'i at 196, 361 P.3d at 423. The restitution here constituted billings from Maui Memorial even though $204,174.49 was paid by AlohaCare and $996,283.16 was deducted in adjustments and write-offs.

 

“Restitution shall be a dollar amount that is sufficient to reimburse any victim fully for losses.” HRS § 706-646(3). The statute does not define the term “losses” beyond a list of listed categories. In construing an older version of the restitution statute, the HSC held that the total amount “should be the actual loss or damage incurred by the victim.” State v. Johnson, 68 Haw. 292, 295, 711 P.2d 1295, 1298 (1985). The HSC took a similar approach:

 

The plain language of HRS § 706-646(3) does not allow a restitution award to include adjustments of bills written off by medical providers. The victim never paid these amounts. Hence, the victim does not need to be “reimbursed” for amounts never paid.

          By the same token, this plain language does not allow a restitution award to a direct victim to include medical expenses paid by an insurer or indemnifier. A direct victim has not paid these amounts, so there is nothing to “reimburse.”

 

HSC overrules Tuialii! In reaching this holding, the HSC addressed State v. Tuialii, 121 Hawai'i 135, 214 P.3d 1125 (App. 2009). In that case, the ICA upheld a restitution award that included amounts already paid by the victim’s insurer. Id. at 139, 214 P.3d at 1129. The ICA concluded that lower courts “need not sort out insurance indemnities, subrogation rights, and/or other potential civil law implications before ordering a thief or other criminal to repay his victim under the criminal restitution statute.” Id. at 142, 214 P.3d at 1132.

 

The HSC picked upon Justice Pollack’s dissenting opinion in State v. Demello, 136 Hawai'i at 216 n. 24, 361 P.3d at 443 n. 24 (Pollack, J., dissenting), when he noted that gross receipts instead of net income does not represent “actual loss” and should not be included. The HSC also characterized the problem of including insurance payouts with the restitution award as an improper importation of the collateral source rule, a common law doctrine in tort law. Bynum v. Magno, 106 Hawai'i 81, 86 n. 11, 101 P.3d 1149, 1154 n. 11 (2004). The collateral source rule requires civil defendants in tort cases to be responsible for the whole amount even though medical expenses may have been paid in party by an independent or collateral source. Id. Contrary to the ICA’s justification in Tuialii, the point of restitution is to prevent injustice and unjust enrichment, not award “damages.” Small v. Badenhop, 67 Haw. 626, 636 n. 12 & 13, 701 P.2d 641, 654 n. 12 & 13 (1985). The collateral source rule has no place in the law of victim restitution.

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