9th Circuit overturns judge in tax case after Crule District Court ruling

Criminal Law & Procedure, Tax Law
US v. Kloehn
Defendant’s conviction and sentence for four counts of causing tax evasion are reversed where the district court abused its discretion and prejudiced defendant’s ability to present his defense when it refused to continue the trial for two days to allow him to see his dying son.

Appeal from the United States District Court

for the Central District of California

Dale S. Fischer, District Judge, Presiding

Argued and Submitted

December 7, 2009—Pasadena, California

Filed August 30, 2010

Before: Stephen Reinhardt, Stephen S. Trott and

Kim McLane Wardlaw, Circuit Judges.

Opinion by Judge Reinhardt;

Dissent by Judge Trott

Check out the number of gov lawyers vs defendant’s lawyer

COUNSEL

Thomas P. O’Brien, United States Attorney; Christine C.

Ewell, Assistant United States Attorney, Chief, Criminal

Division; Ruth C. Pinkel, Assistant United States Attorney,

Major Frauds Section; Michael J. Raphael, Assistant United

States Attorney, Los Angeles, California, for the plaintiffappellee.

David A. Katz, Beverly Hills, California, for the defendantapellant

OPINION

REINHARDT, Circuit Judge:

Garth Kloehn appeals from his conviction and sentence for

four counts of causing tax evasion in violation of 26 U.S.C.

§ 7201 and 18 U.S.C. § 2. We hold that the district court

abused its discretion and prejudiced Kloehn’s ability to present

his defense when it refused to continue the trial for two

days to allow him to see his dying son. Accordingly, we

reverse and remand for a new trial. We do not reach Kloehn’s

other arguments on appeal.

I.

Garth Kloehn was indicted on tax evasion charges on September

9, 2003. His first trial ended in a mistrial on March 1,

2005, when the jury could not agree on a verdict. His second

trial, on a redacted indictment, began in Los Angeles, California

on November 15, 2005. Kloehn himself was the sole

defense witness. On the evening of the fifth day of his testimony,

his son Kevin suffered a “massive seizure” in Las

Vegas where Kloehn and his son both lived. Kevin had previously

been diagnosed with end-stage melanoma. Following

the seizure, the emergency room doctor reported to Kloehn

that Kevin “ha[d] very little life expectancy” and was

expected to die in the “next few days.” He also provided him

with a note to that same effect.

The following day, Kloehn was set to resume testifying in

his own defense. Prior to the start of the day’s proceedings,

defense counsel requested a two-day continuance to allow

Kloehn to see Kevin once more before his death. Counsel

submitted the note from the emergency room doctor documenting

the gravity of the situation. He explained that Kloehn

had been unable to concentrate the night before, making it

extremely difficult to prepare his testimony, and said that he

UNITED STATES v. KLOEHN 12961

doubted that Kloehn would be able to testify effectively that

day.

The government opposed Kloehn’s request for a continuance.

The government’s attorney suggested that if he wanted

to be with his son, he could just “finish his testimony, and . . .

go back to Las Vegas.” She argued that “[a] break would

operate . . . to the significant detriment of the jury’s ability to

even remember what happened during the course of the trial.”

The district judge did not question the reliability of the doctor’s

note or the gravity of the situation. She did not make any

finding that a short continuance would inconvenience either

the court or the government. Nonetheless, she denied the continuance.

Kloehn then took the stand and testified for several hours,

after which the defense rested.1 The government’s one rebuttal

witness, an IRS agent, took the stand and began to summarize

the flow of money involved in the case. Shortly after she

began testifying, defense counsel requested permission to

approach the bench. He observed that it did not appear that

the agent would complete her testimony that day, and

requested that trial be concluded for the day so that Kloehn

could catch a plane to Las Vegas to see his son. The court

agreed to end proceedings for the day and to “excuse” Kloehn

from the rest of the trial. Defense counsel agreed that Kloehn

would “waive his appearance.”2 Kloehn left for Las Vegas.

His son died about an hour after he arrived.

Kloehn did not appear in court the following day. Defense

counsel conveyed to the court the news about Kevin’s death.

The judge offered her condolences, and asked counsel what

he would like the court to say to the jury about Kloehn’s

absence. Counsel requested that the judge inform the jury that

Kloehn had been excused due to a death in the family. The

judge responded, “[f]amily emergency is fine.” The government

attorney then argued that the judge should simply tell

the jury that “the defendant has chosen not to be here.”

Defense counsel opposed the government’s proffered explanation

on the ground that it would encourage the jury to think

that Kloehn was showing a lack of respect for the court.

When the jurors entered, the district judge addressed them

as follows:

Ladies and gentlemen, you may notice that Mr.

Kloehn is not here. He is unable to be with us today.

He has a right to be present. He has a right not to be

present. He is not required to be here, so you

shouldn’t infer anything from the fact that he is not

able to be here today.

The next day, after five hours of deliberations, the jury found

Kloehn guilty on four counts of tax evasion.

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