Opinion ID: 770587
Heading Depth: 2
Heading Rank: 3

Heading: Amount of Fine

Text: 47 The district court's decision to impose a $10,000 fine under U.S.S.G. 5E1.2 provides further support for our decision to vacate Sager's sentence. Sager argues that a $10,000 fine unduly burdens his dependents and that he has demonstrated an inability to pay. The district court's determination that Sager had the ability to pay the fine is a finding of fact reviewed for clear error. See United States v. Ladum, 141 F.3d 1328, 1344 (9th Cir. 1998). Sager bore the burden of proving inability to pay. See id. 48 Sager filed a formal objection to the PSR's recommendation that he pay a $10,000 fine. In his objection, Sager argued that it would be unduly burdensome for the court to order him to pay the $10,000 fine by cashing in a life insurance policy, due to his family's negative monthly cash flow during his imprisonment and because the policy was intended for the benefit of his wife and two children. For reasons unknown to this court, Sager's attorney did not raise this issue at the time of sentencing. 49 Section 5E1.2(a) of the sentencing guidelines provides that a court shall impose a fine in all cases, except where the defendant establishes that he is unable to pay and is not likely to become able to pay any fine. U.S.S.G. 5E1.2(a). In determining the amount of a fine to impose, courts shall consider, among other things, a defendant's ability to pay the fine, U.S.S.G. 5E1.2(d)(2), and the burden imposed by the fine on the defendant and his dependents, U.S.S.G. 5E1.2(d)(3). See also United States v. Ortland, 109 F.3d 539, 549 (9th Cir. 1997). Moreover, under section 5E1.2(e), if a defendant establishes inability to pay a fine in either a lump sum or through an installment plan, or if the fine would unduly burden the defendant's dependents, a court may impose a lesser fine or waive the fine, and must consider alternative sanctions [such as community service ] in lieu of all or a portion of the fine. U.S.S.G. 5E1.2(e). 50 Here, the district court imposed a lump sum fine of $10,000 without making clear that it had considered the question of undue burden to Sager's dependents. In this case, that question is a substantial one. The record indicates that the only way Sager could both pay the fine and provide for his family's needs while he was in prison would have been to cash in a life insurance policy intended to benefit the family in the event of his death. In United States v. Quan-Guerra, 929 F.2d 1425 (9th Cir. 1991), the defendant relied on an Eighth Circuit opinion in arguing that the district court must make findings on the record which demonstrate that the sentencing court has taken into account all the factors that, in assessing a fine, the court is required to take into consideration under the Guidelines. Id. at 1427 (quoting United States v. Walker, 900 F.2d 1201, 1206 (8th Cir. 1990)). Without expressing an adoption of that rule, the Quan-Guerra court held that its review of the record satisfie[d] [it] that the district court considered all required factors in evaluating [the defendant's] ability to pay this fine. Id.; see also Ortland, 109 F.3d at 549 (citing Quan-Guerra for the proposition that findings need not be express or on the record); cf. United States v. Eureka Laboratories, Inc., 103 F.3d 908, 913-14 (9th Cir. 1996) (analyzing different statutory provision similarly requiring the consideration of factors prior to imposing a fine, and concluding that a court need not explicitly state the court's application of each [18 U.S.C. S] 3572 factor on the record. Rather, if the record, taken as a whole, indicates that the trial court considered the section 3572 factors, the trial court's findings are adequate.) (citing Quan-Guerra, 929 F.2d at 1427). 51 Although our circuit has not interpreted section 5E1.2 as requiring that district courts make explicit factual findings on the record with regard to the burden issue (or other section 5E1.2(d) and (e) factors), a district court should, in some way, make clear that it has considered the issue. Otherwise, we are utterly incapable of conducting any meaningful appellate review of the district court's compliance with section 5E1.2(d)'s mandate. Because the district court failed to demonstrate such consideration in Sager's case, we do not know if it accurately determined whether the $10,000 fine would unduly burden Sager's dependents. This error, along with the district court's error in finding that the Post credit card had been stolen on March 26, leads us to vacate the imposition of the fine and remand to reconsider whether the $10,000 fine would unduly burden Sager's dependents and, if so, whether alternative sanctions should be imposed instead of all or part of the fine. 52 We do note, however, that this error was not entirely the fault of the district court. We expect counsel to speak up at sentencing on behalf of their clients' interests, not sit quietly by and allow an oversight to occur. It is technically enough, of course, to file a written objection to the PSR, but an astute attorney filing such an objection would also raise the issue again at sentencing if it appears to have gone unaddressed.