FILED U.S. COURT OF AP P EALS E LEVEN T HC IRC U IT DECEMBER 6, 2006 THOMAS K. KAH

N CLERK [ P UB L I S H] I N THE UN I TE D STATE S C OU RT OF APPE ALS F O R T H E E L E V E N T H C IR C U IT

________________________ N o. 05- 16616 N on -A rgum entC al endar

________________________ D. C . Do c k e tNo . 0 5 - 8 0 0 7 1 - C R - DT KH U N I T E D S T A T E S O F A M E R I C A , P la in tif f - A p p e lle e , v ersu s V A L E N T I N C E D E N O , a .k .a . V a le n tin C e d e n a , D e f e n d a n t- A p p e lla n t.

________________________ N o. 05- 16617 N on -A rgum entC al endar

________________________ D. C . Do c k e tNo . 0 5 - 8 0 0 7 1 - C R - DT KH U N I T E D S T A T E S O F A M E R I C A , P la in tif f - A p p e lle e , v ersu s2

A N G E L C O N C E P C I O N , a .k .a . A n g e l L o p e z , D e f e n d a n t- A p p e lla n t.

________________________ A pp ea l s f

rom the U ni t ed S t at es D i stri ctC ou rt f orthe S outhe rn D i s tr i c tof F l or i da

_________________________ ( D e c e m b e r 6, 2006) B efo re B L A C K , C A RN E S an d B A R K E T T , C i rcu i tJu d g es. C A RN E S , C i rc ui tJudg e: V al ent i n C edeno and A ng el C on ce pci on part i ci pat ed i n a sm as h-and-grab jo b , u s in g s le d g e h a m m e r s to b a s h o p e n ala r g e d is p la y c a s e a t M a y o r ’s J e w e le r s in B oc aR a t on, F l or i da . T he y m a de of f w i th 108 e xpe ns i ve w a t c he s w i th at ot a l va l ue o f $ 1 , 4 8 5 , 0 0 0 . Th e s t o r e g o tth e w a t c h e s b a c ka f t e rth e p o l i c e r e c o v e r e d th e m, a nd i ts pe nt$13, 929 r e pa i r i ng the da m a ge s om e of the w a t c he s s uf

f e r e d dur i ng the s m a s hi ng and gr abbi ng. C e de no a nd C onc e pc i on e a c h pl e a de d gui l ty a nd w e r e c onvi c t e d of conspi ra cyt o com m i trobb ery i n v i ol at i on of 18 U . S . C . § 1 95 1(a) , and o f r ob bery i n vi ol a t i on of

18 U . S . C . §§ 1951( b) . T he ke y i s s ue a ts e nt e nc i ng w a s the a m ount o f “lo s s ” u n d e rU n ite d S ta te s S e n te n c in g G u id e lin e s § § 2 B 3 .1 ( b ) ( 7 ) ( E )

– ( F ) ( 2 0 0 4 ) .3

If the l oss di d n otexce ed $1 , 50 0, 00 0, C edeno and C on ce pci on w er e due a fours t e p i nc r e a s e i n the of

f e ns e l e ve l , buti f

i te xc e e de d $1, 500, 000, the y w e r e i n l i ne f o raf iv e - s te p in c r e a s e . I d . T he di stri ctcourtca l cul at ed the am ou ntof the l oss a t$1 , 50 1, 43 0. 60 , w hi ch i nc l ude d the m a rke tva l ue of the w a t c he s be f

or e a ny da m a ge ( $1, 485, 000) , the c os tof r e pa i r i ng the da m a ge d w a t c he s ( $13, 929) , a nd the m i s c e l l a ne ous da m a ge th a t th e d e f

e n d a n ts in f

lic te d o n th e je w e lry s to r e its e lf d u r in g th e h e is t ( $ 2 ,5 0 1 .6 0 ) . I t w a s u n d is p u te d th a t e v e n a f te rth e y w e r e r e p a ir e d th e w a tc h e s w e r e w o r th $ 1 8 ,7 5 0 le s s th a n th e y w o u ld h a v e b e e n b u t f o rth e c r im e , b u t th e d is tr ic t c o u r t d id no tuse thatfa cti n i t s c al cul at i on . C edeno and C on ce pci on cont end thatthe di stri ct courterre d i n cou nt i ng i n i t s l oss c al cul at i on the re pai r c ostal on g w i th the ent i re fai r m ark etv al u e o f th e w at ch es. C o u n t i n g th e rep ai r co sti n creased th ei r o ffen se le v e l o n e s te p a n d u p p e d th e a d v is o ry g u id e lin e s r a n g e th e d is tr ic t c o u r t u s e d to a rr iv e a t as e n te n c e o f

6 5 m o n th s f

o re a c h o f

d e f e n d a n t. ( W ith o u t th e e x tr as te p in the of f e ns e l e ve l the r a nge w oul d ha ve be e n 51 t o 63 m onths i ns t e a d of 57 t o 71 m on ths. ) S ec t i on 2B 1. 1 p rovi des that“ l oss i s the great erof ac tual l oss or i nt ended l os s , ” a nd § 2B 3. 1 de f

i ne s l os s a s “ the va l ue of the pr ope r ty t a ke n, da m a ge d, or de s tr oy e d. ” U . S . S . G . § 2B 3. 1 c m t . n. 3 ( 2004) . T he di s tr i c tc our tf ound tha tthe4

c os tof r e pa i r i ng the w a t c he s s houl d be i nc l ude d i n the a m ountof l os s be c aus e : ( 1) the da m a ge t o the w a t c he s w a s ar e a s onabl yf or e s e e abl e r e s ul tof

C e de no a nd C onc e pc i on s m a s hi ng the j e w e l ry c a s e w i th s l e dge ha m m e r s , ( 2) l os s s houl d be m e a s ur e d f

r om the pe r s pe c t i ve of

the vi c t i m , a nd ( 3) the vi c t i m a c tua l l y s pe nt m o n e y to r e p a irth e w a tc h e s . T a k in g u p th e d is tr ic t c o u r t’s r e a s o n s in th e o r d e rg iv e n , its “r e a s o n ab ly f o r e s e e ab le ” p e r s p e c tiv e ap p a r e n tly d e r iv e s f r o m th e n e w c o m m e n ta ry to § 2 B 1 .1 of the gui de l i ne s a s r e vi s e d by A m e ndm e nt617. U . S . S . G . § 2B 1. 1 c m t . n. 3( A ) ( i v) ( 2 0 0 4 ) ( “ Fo rp u rp o s e s o f th i s g u i d e l i n e , ‘ r e a s o n ab l y f o r e s e e ab l e p e c u n i a ry h a rm’ m ean s p ecu n i ary h arm th atth e d efen d an tk n ew o r, u n d er th e ci rcu m st an ces, r e a s onabl y s houl d ha ve know n, w a s apot e nt i a l r e s ul tof the of f e ns e ” ) . A l though the com m ent ary t o § 2B 3. 1 form er l y c ross -r ef er ence d the l oss def

i ni t i on of § 2 B 1 .1 , s e e U .S .S .G . § 2 B 3 .1 c m t. n .3 ( N o v . 1 , 2 0 0 0 ) ( “V a lu a tio n o f lo s s is di sc usse d i n the C om m ent ary t o § 2B 1. 1 . . . ”) , A m endm ent61 7 rem ov ed that cr oss- re fe re nce. U . S . S . G . app. C 15 1 (20 03 , vo l . 2). T hatm ea ns the di stri ct c our t ’ s r e l i a nc e on the c om m e nt a ry i n the ne w § 2B 1. 1 w a s e rr one ous . I ns t e a d, A m e ndm e nt617 pr ovi de s tha tthe f orm e rde f

i ni t i on of l os s c ont a i ne d i n the c o m m e n ta ry to th e o ld § 2 B 1 .1 s h o u ld b e u s e d in c a lc u la tin g lo s s u n d e r§ 2 B 3 .1 . I d. a t181. B e f

or e 2001, the c om m e nt a ry t o § 2B 1. 1 of the gui de l i ne s s t a t e d:5

‘L o s s ’ m e a n s th e v a lu e o f th e p r o p e r ty ta k e n , d a m a g e d , o rd e s tr o y e d . O r d in a r ily , w h e n p r o p e r ty is ta k e n o rd e s tr o y e d th e lo s s is th e f a ir m arketval ue of the part i cul arprop erty a ti ss ue. W here the m arket va l ue i s di f

f i c ul tt o a s c e r t a i n ori na de qua t e t o m e a s ur e ha rm t o the vi ct i m , the courtm aym ea sure l oss i n som e other w ay , such as r e a s o n ab le r e p la c e m e n t c o s t to th e v ic tim . . . . W h e n p r o p e r ty is da m a ge d, the l os s i s the c os tof r e pa i r s , nott o e xc e e d the l os s ha d the pr ope r ty be e n de s tr oy e d. U . S . S . G . § 2 B 1 . 1 cm t . n . 1 (N o v . 1 , 2 0 0 0 ). T h i s m eth o d o f v al u at i o n cap s th e co st of r e pa i r i ng da m a ge d pr ope r ty a tthe s a m e a m ounttha tw oul d ha ve be e n us e d i f the pr ope r ty ha d be e n t ot a l l y de s tr oy e d, w hi c h i s the f ul l f a i rm a rke tva l ue be f

or e the c r im e . E v e n if

th e r e a s o n ab le f

o r s e e ab ility te s t o f

th e n e w § 2 B 1 .1 d id ap p ly , it w o u l d n o tj u st i fy i n cl u d i n g b o th th e fai r m ark etv al u e o f th e w at ch es an d th e co st of r e pa i r i ng the m . T he l a r ge s ta m ountof da m a ge tha tC e de no a nd C onc e pc i on coul d h ave r ea sonabl y f ores ee n d oi ng t o the w at ches w as 10 0% of thei r f ai r m arket val ue. T here i s no d am age thatca n b e don e bey on d t ot al destruct i on . T he di stri ct c our tha d a l r e a dy i nc l ude d the e nt i r e f a i rm a rke tva l ue of

the w a t c he s a tthe t i m e of th e c r im e in its c a lc u la tio n o f th e lo s s b e f

o r e a d d in g th e c o s t o f

r e p a ir s . T he s e c ond r e a s on the di s tr i c tc our tga ve , tha tl os s s houl d be m e a s ur e d f r om the pe r s pe c t i ve of

the vi c t i m , doe s nots uppor ti nc l udi ng both the va l ue of the w at ch es b efo re th e cri m e an d th e co sto f rep ai ri n g th e d am ag e t o th em aft erw ard s, e ith e r . F r o m M a y o r ’s J e w e le r s ’ p e r s p e c tiv e th e m o s t it p o s s ib ly c o u ld h a v e lo s t6

be c aus e of

w ha tw a s done t o the w a t c he s the m s e l ve s i s $1, 485, 000. B e c aus e the w at ch es w ere reco v ered , th e actu al l o ss su fferedb y M ayo r’ s w as th e $ 1 3 , 9 2 9 co st of r e pa i rpl us the $18, 750 di m i nut i on i n the f a i rm a rke tva l ue e ve n a f t e rr e pa i r , f

or at ot a l of $32, 679. T ha ti s f

a rbe l ow the t ot a l va l ue of the pr ope r ty “ t a ke n, d a m a g e d , o rd e s tr o y e d ,” w h ic h is th e m e a s u r e u n d e rU .S .S .G . § 2 B 3 .1 c m t. n .3 (200 4) . T he thi r d r e a s on the di s tr i c tc our tga ve f ora ddi ng the c os tof

r e pa i rt o the va l ue the w a t c he s ha d be f or e a ny da m a ge i s tha tM a y or ’ s di d s pe nd m one y t o re pai r the dam aged w at ches i n a re as on abl e e ff ortt o m i ni m i ze i t s l osse s. Itw as abl e t o do s o onl y be c aus e the pol i c e r e c ove r e d the da m a ge d w a t c he s . H a d C e de no a n d C o n c e p c io n e f

f e c tiv e ly h id d e n th e w a tc h e s , o rs m a s h e d th e m to m e ta llic d u s t, M a y or ’ s w oul d ha ve ha d no oppor tuni ty t o m i t i ga t e i t s l os s e s a nd the r e w oul d be no re pai r c ost s t o h ol d agai nstthe defendant s. Itw ou l d b e a n o dd construct i on of § 2 B 3. 1 thatal l ow ed the re coveryof prop erty t o actual l y i ncre as e the se nt ence of a th ie f , th e r e b y e n c o u r a g in g th o s e w h o h a d s to le n p r o p e r ty th a t w a s d a m a g e d to destroy i t . E ven p utt i ng the backw ar ds i ncent i ve as i de, i tw ou l d m ake no m ore s e ns e t o i nc l ude i n the c a l c ul a t i on of l os s both the va l ue of

the pr ope r ty t a ke n a nd the c os tof

the da m a ge i nf

l i c t e d tha n i tw oul d t o doubl e al os s by c ount i ng the v al u e o f p ro p erty w h en i ti s t ak en an d th en co u n t i n g i tag ai n i f th e p ro p erty i s7

d e s tr o y e d b e f

o r e it is d is c o v e r e d . T h e s e u n to w a r d r e s u lts a r e a v o id e d b y th e ru le s pe c i f i e d i n U . S . S . G . § 2B 3. 1 c m t . n. 3, w hi c h s e t s the l os s a t“ the va l ue of the p r o p e r ty ta k e n , d a m a g e d , o rd e s tr o y e d .” ( e m p h a s is a d d e d ) . W e r e vi e w l os s c a l c ul a t i ons f orc l e a re rr or , U ni t e d S t a t e s v. H a m a ke r , 455 F .3 d 1 3 1 6 , 1 3 3 6 n .1 9 ( 1 1 th C ir . 2 0 0 6 ) , a n d in c lu d in g in th e lo s s c a lc u la tio n b o th the ent i re val ue of the w at ches thatw er e t aken and the costof re pai ri ng tho se that w e r e da m a ge d i s c l e a re rr or . O n r e m a nd the di s tr i c tc our ts houl d r e c a l c ul a t e the l oss a m ou ntby dedu ct i ng the re pai r c ost s, and aft erarri vi ng ata new advi sory g u id e lin e s s e n te n c in g r a n g e p r o c e e d to r e s e n te n c e C e d e n o a n d C o n c e p c io n . V AC AT E D A ND RE MAND E D.