Opinion ID: 562305
Heading Depth: 2
Heading Rank: 6

Heading: Drug Records

Text: 49 From the search of Lai's house the Government obtained what appeared to be handwritten and computer summaries of drug transactions. Brandon filed a motion in limine to prevent this evidence from being presented at trial on the ground that it was not authenticated as required by Fed.R.Evid. 901(a) and 901(b)(9). Brandon also reserved a hearsay objection. 50 At trial, Deborah Glazier, Lai's ex-girlfriend, testified that she had personal knowledge of the written summaries because she prepared some of them and knew that Lai had written the others. She also said that she was familiar with the computer printouts--that they were the handwritten summaries in computer form--but did not know who input the data into the computer. The Government moved to have the exhibits admitted into evidence. Brandon objected to admission of the hand written records on the ground that the records were hearsay and did not fall within the business records exception (Fed.R.Evid. 803(6)). The court overruled the objection stating that the exhibits were not coming in as business records but as indicia of criminal activity. The court also overruled Brandon's lack of foundation objection to admission of the computer records. 51 At the conclusion of the Government's case, Brandon moved to strike this evidence and Lai joined this motion. Previous to this point Lai never objected to the records being introduced into evidence. The district court denied the motion, stating: 52 ... the foundational requirements and the requirements for trustworthiness are appropriate when you're dealing with admissibility of records in a legitimate business activity. However, when you're dealing with records that have to do with drug dealing or illicit activity, they ... do not come within the purview of the evidence code with reference to their admissibility because they are not records in the true sense of the word, but they are indicia of criminal activity. 53 Because Lai did not make a timely objection to the records being introduced into evidence, we review this issue with respect to Lai only for plain error affecting substantial rights. United States v. Ordonez, 737 F.2d 793, 799 (9th Cir.1984). Since admitting the summaries potentially implicates Lai's rights under the Confrontation Clause, review is appropriate. Id. With respect to the evidentiary objections Brandon made at trial and continues to raise on appeal, we review the district court's rulings for abuse of discretion to the extent that factual determinations are involved. The district court's construction of the Federal Rules of Evidence is a question of law which we review de novo. United States v. Owens, 789 F.2d 750, 753 (9th Cir.1986), reversed on other grounds, 484 U.S. 554, 108 S.Ct. 838, 98 L.Ed.2d 951 (1988). We review Brandon's Confrontation Clause argument for plain error affecting substantial rights. Ordonez, 737 F.2d at 799. 54 The court apparently allowed the alleged drug records into evidence merely because they were indicia of criminal activity. The Government does not dispute that it used the records to help prove the truth of matters asserted therein, i.e. particular drug transactions during the course of the conspiracy. Therefore, the records do constitute hearsay and a proper foundational showing for admitting the records to prove the truth of the matters asserted must be established. Ordonez, 737 F.2d at 799, 805-06. 55 On appeal, the Government offers several theories under which the records may have been admissible. One particularly plausible theory is that the records were admissible as co-conspirator statements under Fed.R.Evid. 801(d)(2)(E). United States v. Smith, 893 F.2d 1573, 1577-79 (9th Cir.1990); United States v. Schmit, 881 F.2d 608, 613 (9th Cir.1989). There was other substantial evidence of the conspiracy, the statements appear to be in furtherance of the conspiracy, and at least some of the handwritten sheets were written by identifiable co-conspirators (Glazier and Lai). But Glazier also testified that non-drug transactions were sometimes recorded in the summaries, and these might not have been made in furtherance of the conspiracy. Our review of the record indicates that preliminary factual determinations necessary to insure a proper foundation for admitting the records, under this theory and the other theories the Government presents, simply were not made by the trial court. 5 56 Under these circumstances we find the Sixth Circuit's opinion in United States v. Mahar, 801 F.2d 1477 (6th Cir.1986), instructive. In Mahar, the district court erroneously admitted alleged hearsay evidence (handwritten notes) under the business records exception and failed to make sufficient findings to justify admission of the evidence as co-conspirator statements under Rule 801(d)(2)(E). Consequently, the Sixth Circuit remanded the case to the district court with instructions to affirm the charges for which the notes were the primary evidence if the district court determined the notes would have been admissible under the co-conspirator theory, and to set aside the charges and conduct a new trial on these charges if the district court determined the evidence should have been excluded. Id. at 1504. 57 Lai and Brandon contend that the admission of the disputed handwritten and computer records mandates that their convictions for distribution of or possession with intent to distribute cocaine be reversed. Lai also contends that the admission of this evidence requires reversal of his conviction for running a continuing criminal enterprise. Lai and Brandon do not claim that the admission of these records bears on their other convictions. 58 We find, as the Sixth Circuit did in Mahar, that remand is appropriate here because there are preliminary factual issues which must be determined in this case before each possible basis for admitting the records can be considered. Therefore, with respect to only the convictions that Lai and Brandon argue should be reversed because these records were erroneously admitted, we remand to the district court for it to conduct a hearing to determine whether there was a proper basis for admitting each of these records. 59 If the district court finds that some of the disputed records should not have been admitted, it should then consider the prejudicial effect of these particular records in determining whether Lai and Brandon's convictions on particular counts must be vacated and a new trial ordered. Cf. United States v. North, 910 F.2d 843, 872-73 (remanding for factual findings and subsequent inquiry as to harm of possible evidentiary error), amended, 920 F.2d 940 (D.C.Cir.1990).