Opinion ID: 767958
Heading Depth: 2
Heading Rank: 3

Heading: The Two Condonation Theories

Text: 34 The effect of the new evidence must be evaluated in context. The condonation defense went primarily to the theory that the defendants lacked the intent to defraud American Honda because they knew that American Honda was aware of and implicitly condoned their activities. It was in American Honda's interest to condone the fraud, the defendants say, because the kickbacks and bribes worked to subsidize the compensation of American Honda's sales managers, enabling American Honda to pay them lower salaries. 35 A second theory regarding the relevance of American Honda's alleged condonation -- that there could be no scheme to defraud their employer where American Honda knew of the fraud and, in fact, benefitted from it -- emerged most clearly at oral argument. It had been alluded to in the moving papers. This second theory, unlike the first, does not depend on whether the defendants knew that American Honda had knowledge of the fraudulent activities. 36 This second condonation theory had been discussed in various trial and pre-trial motions. On direct appeal from the conviction, Josleyn argued that the trial court had erred in not instructing the jury that American Honda's condonation was a defense, apart from any impact that the condonation may have had on the defendants' intent. This court responded to that argument by stating that [s]ince Josleyn neither cites authority, nor demonstrates, that any condonation by Honda was relevant to an element of the charged offenses other than intent, we conclude that the jury instruction given by the district court was adequate. Josleyn, 99 F.3d at 1194 (citations omitted). 37 This second theory is less present in the various filings supporting the motions for new trial. The memoranda of law filed in support of the 1997 motions for new trial referred to the second theory, but did not discuss it fully or separately from the first theory. The memorandum in support of the 1999 renewed motion for a new trial adverted to a variant of the second theory in a footnote, but the district court's opinion denying the renewed motion did not discuss the second theory. Nor do the briefs in these appeals clearly delineate that there were two separate theories of relevance (although the distinction came up at oral argument on questioning by the court) or provide any supporting authority for the second theory. On this record, the second theory has not been properly presented and preserved. 10 See United States v. Bongiorno, 106 F.3d 1027, 1034 (1st Cir. 1997).