FI LED U. S . COURT OF AP PE ALS E L E V E N T H C IR C U IT N ove m be r 18, 2005 T HOM AS K. KAHN CL E RK [ DO NO T 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

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________________________ D. C . Do c k e tNo . 9 6 - 0 0 2 2 1 - C R - T - 1 7 MAP 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 R I C H A R D B . M A E S T R E L L I , D e f e n d a n t- A p p e lla n t.

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_________________________ ( N ove m be r18, 2005) 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. P E R C U R I A M: R i c ha r d M a e s tr e l l i appe a l s the di s tr i c tc our t ’ s de ni a l of hi s r e que s tf

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adj ustm entof hi s r es t i tut i on ob l i gat i on t o zer o, pu rs uantt o 1 8 U . S . C . § 3 66 4(k), an a dj us tm e nthe s oughton the gr ound tha the a nd the vi c t i m ( a c tua l l y a n a s s i gne e of the vi c t i m ) ha d r e a c he d as e tt l e m e nta gr e e m e nti n w hi c h the r e m a i ni ng r e s t i tut i on obl i ga t i on of

$674, 781. 00 w oul d be di s c ha r ge d i n r e turn f orM a e s tr e l l i ’ s pa y m e nt of $8 00 0. 00 . M ae stre l l i t oo k the po si t i on thatthe se tt l em entconst i tut ed a m at er i al ch an g e i n h i s eco n o m i c ci rcu m st an ces. O n app ea l , M ae stre l l i cont ends that , un der e st abl i shed pri nci pl es of st atut ory construct i on , § 3 66 4(k) shou l d b e c on strued broadl y t o al l ow a s ett l em entbetw ee n a d ef en d an t an d a v icti m to co n stitu te a “m ater ial ch an g e in th e d ef en d an t’ s e c onom i c c i r c um s t a nc e s ” w i thi n the m e a ni ng of tha tpr ovi s i on. H e a r gue s tha tthe pr i m a ry goa l of

r e s t i tut i on i s t o c om pe ns a t e the vi c t i m , a nd tha tgoa l w oul d be f ur the r e d by pe rm i tt i ng di s tr i c tc our t s t o di s c ha r ge ade f e nda nt ’ s r e s t i tut i on o b l i g at i o n b ased u p o n a sett l em en tb etw een h e an d th e v i ct i m . M aestrel l i al so a r g u e s th a t , b e c a u s e th e d i s tr i c tc o u r th a d e n c o u r a g e d h i m t o r e a c h “ s o me u n d e r s ta n d in g ” w ith th e v ic tim , th e c o u r t’s d e c is io n th a t it la c k e d ju r is d ic tio n to ra ti fy th e p riv ate s ettl em en t b y m o d ifyin g th e r es ti tu ti o n o rd erre n d er ed th e c o u rt’s pr e vi ous i ns truc t i ons anul l i ty . F i na l l y , M a e s tr e l l i a s s e r t s tha tthe c our t ’ s de c i s i on v i o l at es th e p ri n ci p l e th atst atu t es sh o u l d b e i n t erp ret ed t o av o i d ab su rd resu l t s. P ursuantt o 1 8 U . S . C . § 3 66 4(k), a def endantw ho i s order ed by the di stri ct3

c our tt o pa y r e s t i tut i on m a y not i f y the c our t“ of

a ny m a t e r i a l c ha nge i n the d e f e n d a n t’s e c o n o m ic c ir c u m s ta n c e s th a t m ig h t a f f e c t th e d e f

e n d a n t’s ab ility to p a y r e s t i tu t i o n . ” An d “ [ u ] p o n r e c e i p to f th e n o t i f i c a t i o n , th e c o u r tm a y , o n i t s o wn m ot i on, orthe m ot i on of a ny pa r ty , i nc l udi ng the vi c t i m , a dj us tthe pa y m e nt sc hedu l e, or re qu i re i m m edi at e pay m enti n ful l , as the i nt er es t s of j ust i ce re qu i re . ” 1 8 U .S .C . § 3 6 6 4 ( k ) . W e ha ve he l d tha t , w hi l e “ r e s t i tut i on r e s e m bl e s aj udgm e ntf orthe be ne f

i tof avi c t i m , i ti s pe na l , r a the rtha n c om pe ns a t ory . ” U ni t e d S t a t e s v. J ohns on, 983 F . 2d 2 1 6 , 2 2 0 ( 1 1 th C ir . 1 9 9 3 ) ( q u o ta tio n o m itte d ) . M o r e o v e r , “[ r ]e s titu tio n is n o t a c i vi l m a tt e r ; i ti s ac r i m i na l pe na l ty m e a ntt o ha ve s tr ong de t e rr e nta nd re habi l i t at i ve ef

fe ct . ” U ni t ed S t at es v. H ai rs t on , 88 8 F . 2d 13 49 , 13 55 (11th C i r. 1989) . T ha ta r gue s a ga i ns tpe rm i tt i ng pr i va t e s e tt l e m e nt s t o w i pe outr e s t i tut i on orders thatar e e nt er ed as partof the penal ty i n a cr i m i nal ca se . B es i des, the di stri ct court ’ s s t at em ent s a tse nt enci ng cl ea rl y i nd i ca t ed t o M ae stre l l i thathe w as t o p ay th e e n tir e a m o u n t o f

r e s titu tio n . H e k n e w th a t w h e n h e n e g o tia te d th e p r iv a te se tt l em entw i th the vi ct i m ’ s a ss i gn ee . W e have hel d thatpri or ci vi l se tt l em ent s s ho ul d b e c on si dere d b y the di stri ct courti n form ul at i ng i t s r es t i tut i on order. S ee i d. (hol di ng thatthe di stri ctcourt pr ope r l y c ons i de r e d the c i vi l s e tt l e m e ntbe tw e e n the de f e nda nta nd the vi c t i m a nd4

c r e d ite d th e d e f

e n d a n t’s r e s titu tio n in th e a m o u n t h e p a id to w a r d th e c iv il se tt l em ent ). H ow ever , w e have al so hel d thata vi ct i m ’ s r ec ei ptof part i al com pensat i on do es no tprec l ud e the courtfr om orderi ng m ore r es t i tut i on . U ni t ed S t a t e s v. T w i tty , 107 F . 3d 1482, 1493 n. 12 ( 11th C i r . 1997) ( r e j e c t i ng the d e f e n d a n t’s a r g u m e n t th a t its s e ttle m e n t w ith th e v ic tim , in w h ic h th e v ic tim ab s o lv e d th e d e f

e n d a n t o f a n y f u tu r e liab ility f

o rth e c la im s in v o lv e d in th e c iv il sui t , prec l ud ed an order of re st i tut i on by the cr i m i nal court ). M ae stre l l i ’ s posi t i on fl i es i n the fa ce of the pl ai n l angu age of § 36 64 (k), w hi c h pr ovi de s no ba s i s f orthe di s c ha r ge of

a n e nt i r e r e s t i tut i on obl i ga t i on on g ro u n d s o f a n eg o t i at ed p art i al p aym en t . T h e cl ear l an g u ag e o f § 3 6 6 4 (k ) al l o w s a defe nd antt o n ot i fythe courtof any c hang e i n h i s e cono m i c c i rc um st ance s that m i gh taf fe cthi s abi l i ty t o p ayre st i tut i on . 18 U . S . C . § 3 66 4(k) (e m ph as i s a dd ed). T he l as tse nt ence of thatprov i si on st at es that , up on no t i fi ca t i on of changed e c onom i c c i r c um s t a nc e s tha tm i ghta f f e c tthe de f

e nda nt ’ s abi l i ty t o pa y r e s t i tut i on, th e c o u r t m a y “a d

ju s t th e p a y m e n t s c h e d u le , o rr e q u ir e im m e d ia te p a y m e n t in f u ll, a s the i nt e r e s t s of

j us t i c e r e qui r e . ” 18 U . S . C . § 3664( k) . M a e s tr e l l i r e que s t e d a di s c ha r ge of

hi s r e s t i tut i on ba s e d on a n a s s e r t e d c ha nge i n hi s obl i ga t i on t o pa y , not any c hang e i n h i s abi l i ty t o p ay . T he st atut e perm i t s achange based on the l att er b u t n o t th e f

o rm e r . D e s p ite M a e s tr e lli’s n u m e r o u s p o lic y - b a s e d a r g u m e n ts5

c o n te n d in g th a t w e s h o u ld in te rp r e t § 3 6 6 4 ( k ) to a llo w ap r iv a te s e ttle m e n t to c o n s titu te a“c h a n g e in e c o n o m ic c ir c u m s ta n c e s ,” w e w ill n o t d is r e g a r d th e p la in l angu age of a s t atut e or m od i fyi tt o con form t o o ur vi ew s of the bestpo l i cy . S ee U n ite d S ta te s v . T r a in o r , 3 7 6 F .3 d 1 3 2 5 , 1 3 3 0 ( 1 1 th C ir . 2 0 0 4 ) ; H a rry v . M a r c h a n t, 2 9 1 F .3 d 7 6 7 , 7 7 2 ( 1 1 th C ir . 2 0 0 2 ) ( e n b a n c ) . E ve n a s s um i ng tha tdi s tr i c tc our t s c oul d c ons i de rpos t - i m pos i t i on s e tt l e m e nt s a s the y c a n c ons i de rpr e - i m pos i t i on one s , tha tw oul d notc om pe l the c onc l us i on M a e s tr e l l i i s due t o be r e l e a s e d e nt i r e l y f r om the obl i ga t i ons of

the re st i tut i on order. In pre- i m po si t i on ci rc um st ance s w e have hel d thatpart i al c om pe ns a t i on of

the vi c t i m doe s notpr e c l ude the c our tf r om or de r i ng r e s t i tut i on of th e r e m a in in g a m o u n t. S e e T w itty , 1 0 7 F .3 d a t 1 4 9 3 n .1 2 . T h e r e f o r e , e v e n if s e tt l e m e nt s e nt e r e d i nt o a f t e rr e s t i tut i on ha s be e n i m pos e d c oul d be c ons i de r e d by th e d is tr ic t c o u r t u n d e r1 8 U .S .C . § 3 6 6 4 ( k ) , th e c o u r t w o u ld b e p e rm itte d o n ly to c r e di tthe de f

e nda nt ’ s r e s t i tut i on or de ri n the a m ounttha tha d be e n pa i d i n the s e tt l e m e nt ; i tw oul d notbe a uthor i z e d t o di s c ha r ge the r e s t i tut i on obl i ga t i on c om pl e t e l y , w hi c h i s w ha tM a e s tr e l l i s ought . S e e H a i r s t on, 888 F . 2d a t1355. T he courtdi d cre di tthe $8 , 00 0 M ae stre l l i pai d i n the se tt l em entagai nstthe bal ance o w ed o n th e t o t al am o u n to f rest i tu t i o n h e h ad b een o rd ered t o p ay; th e co u rtd i d so by no t i ng i n i t s orderthathe had p ai d $ 33 , 60 0 u p t o thatdat e, a t ot al am ou ntw hi ch6

i nc l ude d the $8, 000. T ha tw a s the out e rl i m i t s of the c our t ’ s a uthor i ty t o gr a nt M a e s tr e lli a n y r e lie f

a s ar e s u lt o f

th e $ 8 ,0 0 0 h e h a d p a id in th e p r iv a te s e ttle m e n t. F orthe s e r e a s ons , the di s tr i c tc our tdi d note rri n de t e rm i ni ng tha tunde r18 U . S . C . § 3664( k) i tc oul d notdi s c ha r ge M a e s tr e l l i ’ s r e s t i tut i on obl i ga t i on on the g r o u n d h e a s s e r te d . AF F I RME D.