Case Information
*1 If this opinion indicates that it is “FOR PUBLICATION,” it is subject to revision until final publication in the Michigan Appeals Reports.
S T A T E O F M I C H I G A N C O U R T O F A P P E A L S PEOPLE OF THE STATE OF MICHIGAN, FOR PUBLICATION
February 25, 2020 Plaintiff-Appellee, 9:05 a.m.
v No. 343332
Wayne Circuit Court JOSHUA MARK BURGER, LC No. 17-005741-01-FH
Defendant-Appellant. Before: S HAPIRO , P.J., and J ANSEN and M. J. K ELLY , JJ.
J ANSEN , J.
Defendant appeals as of right his conviction of arson of insured real property, MCL 750.76(1)(b). Defendant was sentenced to 15 months to 20 years’ imprisonment. We reverse, vacate defendant’s conviction and sentence, and remand for a new trial.
I. RELEVANT FACTUAL BACKGROUND
This case arises out of a fire that occurred on April 12, 2017, at defendant’s pawn shop, for which defendant made an insurance claim. Defendant, together with his father, Christian Whitt, co-owned the pawn shop called Pawn Max, or Southgate Exchange Incorporated. The pawn shop was purchased in 2012 for $125,000 on a five-year-land contract, and was paid off within six months.
At trial, Whitt testified that the rent, utilities, payroll, and taxes were current. In 2016, the pawn shop had turned a profit of $427,000. As of April 12, 2017, the pawn shop had turned $126,000 in profit, and was on track to make more than $500,000. Whitt further testified that defendant had no financial problems, had a credit score of above 790, and believed financial stability was important.
On the day of the fire, defendant had been staining a guitar with linseed oil on a rag. Defendant was storing the project on a plywood shelf in the pawn shop’s storage room. At 7:23 p.m., security cameras showed defendant leaving the storage room for 10 seconds, then returning. Defendant stayed in the storage room until 7:27:39 p.m. before walking out of the room alone and *2 locking the door. At 7:27:55 p.m., a fire could be seen in the storage room. Defendant turned off the lights in the pawn shop office, set the alarm, and left the building at 7:28:13 p.m.
Justin Graves, a Southgate firefighter, testified that he was one of the first firefighters to respond to the fire at the pawn shop on the evening of April 12, 2017. After being alerted by the alarm company that there was a fire, defendant returned to the pawn shop and unlocked the building for first responders. Graves and another firefighter came to a locked door inside the building and forced entry into that room, which was a storage area fully on fire “from floor to ceiling.” Graves stated that it “took a few more seconds of water” than usual to dampen the fire, which struck him as odd because fires typically dampen immediately once sprayed with water, although the fire was still extinguished relatively quickly. Graves testified that another room separated from the main sales area by a wall was also on fire. Another firefighter extinguished that fire, and Graves confirmed that the fire had not spread elsewhere.
The fire was investigated by Southgate Fire Chief Michael Sypula, Wyandotte Fire Chief Jeffrey Carley, and Richard Kobarsky, a forensic engineer and owner of a forensic engineering firm called Pyrotechnical Investigations who was called by the defense and qualified as an expert in the field of fire investigation, testified that he investigated the fire on May 31, 2017.
Chief Carley testified at trial that three wooden shelves in the storage room had significant charring and that the second of the three shelves in the storage room was the point of origin of the fire. Chief Carley was able to identify this shelf as the point of origin because the charring of the higher shelves and the ceiling was consistent with the fire moving “up and out,” as fires typically do, while some equipment stored below the shelf that was the point of origin was “relatively undamaged.” Chief Sypula also identified the shelf in the storage area as the point of origin because of the “burn pattern,” or the amount of charring.
Chief Sypula stated that he ultimately determined that the cause of the fire was not electrical, mechanical, or natural. Chief Carley also stated that he did not discover a mechanical or electrical source of fire and that he ruled-out natural causes, such as lightning. Chief Carley testified that he concluded that the “fire was incendiary,” meaning that it had been set intentionally and was not caused accidentally, because there were no mechanical or electrical explanations for why the fire began. Chief Sypula testified that in addition to ruling-out electrical, mechanical, and natural causes of the fire, he relied on the firefighters’ statements that there were two separate fires and the security camera footage showing defendant in the storage area 60 to 90 seconds before the fire started to conclude that the fire was incendiary. Chief Sypula also relied on video footage showing defendant “repositioning a camera” inside the storage room earlier that day and defendant putting rubber gloves on at 7:20 p.m. Chief Sypula did not find what actually started the fire.
Kovarsky also concluded that the fire had one point of origin: the storage room. Indeed, relying on photographs from the scene, Kovarsky testified that he believed a shelf in the storage room was the point of origin. On or near the shelf were a guitar, a “metal paint container” without a label that Kovarsky was led to believe contained linseed oil, and some “fairly undamaged rags . . . at the top of the container.” Kovarsky learned from defendant that he had been using linseed oil to refinish a guitar and had been placing the used rags in a metal can. Kovarsky stated that something else must have been on top of the rags because the cleanliness of the rags was *3 inconsistent with the heat damage to the outside of the paint can. Kovarsky testified that the cause of the fire in this case was uncertain, but spontaneous combustion was his primary theory.
Christina Swan, “a technical specialist” who “handle[d] first[-]party property claims” for Northfield Insurance, a subsidiary of Travelers Insurance, testified that defendant filed a claim related to the April 12, 2017 fire on April 27, 2017, in the amount of $574,954.68. Defendant’s insurance policy included coverage for fire damage, but a claim would not be paid if defendant were found to be responsible for the damage. Swan stated that defendant submitted the claim on behalf of Southgate Exchange Incorporated and listed himself as the sole owner with no third- party beneficiaries. Defendant listed the cause of the fire on the insurance claim as “unknown.”
Ultimately, defendant was convicted by a jury of arson of insured real property with intent to defraud. The trial court sentenced defendant to 15 months to 20 years’ imprisonment. This appeal followed.
II. EXCLUSION OF DEFENSE WITNESSES
Defendant first argues on appeal that the trial court erroneously excluded the testimony of two defense witnesses. We agree.
A. STANDARD OF REVIEW
“A trial court’s decision to admit evidence will not be disturbed absent an abuse of
discretion.”
People v Denson
,
B. ANALYSIS
Defendant sought to admit the testimony of senior public insurance adjuster Craig Becker at trial. [1] Defendant sought to have Becker qualified as an expert in “first[-]party property insurance” and expected Becker to testify about defendant’s insurance coverage. The prosecution objected to the introduction of Becker’s testimony under MCL 500.1232, which provides, in relevant part:
A person shall not audit or abstract policies of insurance or annuities, provide advice, counsel, or opinion with respect to benefits promised, coverage afforded, terms, value, effect, advantages, or disadvantages of a policy of insurance or *4 annuity, nor advertise, solicit business, or hold himself or herself out to the public as an insurance counselor unless he or she is licensed as an insurance counselor. . . . This section does not prohibit the customary advice offered by a licensed insurance agent nor does this section apply to a person admitted to the practice of law in this state. [Emphasis added.]
Defendant countered, arguing that Becker’s testimony was admissible under MRE 702, which provides:
If the court determines that scientific, technical, or other specialized knowledge will assist the trier of fact to understand the evidence or to determine a fact in issue, a witness qualified as an expert by knowledge, skill, experience, training, or education may testify thereto in the form of an opinion or otherwise if (1) the testimony is based on sufficient facts or data, (2) the testimony is the product of reliable principles and methods, and (3) the witness has applied the principles and methods reliably to the facts of the case.
Defendant proffered that Becker would be qualified to testify regarding his review of defendant’s insurance policy, the pawn shop’s finances, and the inventory supporting defendant’s insurance claim. The trial court agreed with the prosecution, and excluded Becker’s testimony on the basis of MCL 500.1232, noting that Becker was not “a licensed insurance counselor,” and therefore was precluded from “giv[ing] an opinion with respect to benefits, promised coverage afforded, terms, value, effect, advantages or disadvantages.”
“The primary goal of statutory interpretation is to give effect to the intent of the Legislature.
The objective of statutory interpretation is to discern the intent of the Legislature from the plain
language of the statute.”
People v Barrera
,
Quoted in relevant part
supra
, MCL 500.1232 reflects a longstanding distinction “between
insurance agents and insurance counselors, with agents being essentially order takers while it is
insurance counselors who function primarily as advisors.”
Harts v Farmers Ins Exch
, 461 Mich
1, 9;
Indeed, Michigan jurisprudence has yet to address whether MCL 500.1232 bars a witness
from testifying about the terms of an insurance policy when the witness is not a licensed insurance
counselor. We now take the opportunity to do so, and conclude that MCL 500.1232 does not bar
an expert witness, whose testimony is otherwise admissible under MRE 702, from providing
testimony regarding the terms of an insurance policy. In this case, MCL 500.1232 did not bar the
admission of Becker’s testimony, and the trial court’s conclusion to the contrary was an abuse of
discretion, as it was an error of law.
Al-Shara
,
MCL 500.1232 and MRE 702 are not in conflict. MCL 500.1232 does not contain any reference to the admissibility of evidence in a court proceeding. Indeed, the entirety of Chapter 12 of The Insurance Code of 1956, MCL 500.100 et seq. pertains to the licensing requirements, and serves as a licensing framework, for agents, solicitors, adjusters, and counselors. MCL 500.1232, the statute at issue here, prohibits anyone who is not a licensed insurance counselor from “aduit[ing] or abstract[ing] policies of insurance or annuities, provid[ing] advice, counsel, or opinion with respect to benefits promised, coverage afforded, terms, value, effect, advantages, or disadvantages of a policy of insurance or annuity, [or] advertis[ing], solicit[ing] business, or hold[ing] himself or herself out to the public as an insurance counselor.” Moreover, a person who is not licensed as an insurance counselor is also prohibited from “us[ing] terms such as consultant, consulting services, or any other language in a way which implies that he or she is a licensed insurance counselor.” MCL 500.1232.
In this case, the insurance policy defendant sought to recover under was purchased in February 2017. The purpose of Becker’s testimony was to describe the coverage provided and the losses incurred. Becker would not have been acting as an insurance counselor by providing an expert witness opinion about the already existing insurance coverage, and the losses incurred. Indeed, Becker’s testimony is typical of a public insurance adjuster, which Becker is. In sum, MCL 500.1232 prohibits an individual not licensed as an insurance counselor from doing the work of an insurance counselor, i.e., advise clients about what type of insurance coverage they will need. None of the statutory licensing provisions refer to providing testimony in court, thus MRE 702 applies. The trial court committed a legal error by exceeding the scope of MCL 500.1232 by applying it to bar the testimony of a public adjuster regarding the terms of coverage of an already purchased insurance policy.
We also conclude that “‘after an examination of the entire cause, it . . . affirmatively appear[s]’ that it is more probable than not that the error was outcome determinative.” People v Lukity , 460 Mich 484, 496; 596 NW2d 607 (1999), quoting MCL 769.26. The trial court’s exclusion of Becker’s testimony deprived defendant of the ability to fully mount the defense that he had no financial motive to defraud the insurance company or set the building on fire. Because defendant should have the opportunity to fully present a defense, we vacate his conviction and sentence, and remand for a new trial.
Defendant also argues that the trial court committed legal error by excluding the testimony of his landlord and owner of the building, Diane Desantis. Desantis’ testimony was offered to show that defendant was current on his rent, and thus further his theory that he had no financial motive to commit an arson.
Relevant evidence is generally admissible. MRE 402. “‘Relevant evidence’ means
evidence having any tendency to make the existence of any fact that is not of consequence to the
determination of the action more probable or less probable than it would be without the evidence.”
MRE 401. Relevant evidence “may be excluded if its probative value is substantially outweighed
by the danger of unfair prejudice, confusion of the issues, or misleading the jury, or by
considerations of undue delay, waste of time, or needless presentation of cumulative evidence.”
MRE 403. Financial motive may be relevant evidence of arson.
People v Carter
, 250 Mich App
510, 521;
Where financial motive may be relevant of arson, id. , it logically follows that a lack of financial motive is also relevant to whether a defendant committed arson. Thus, Desantis’ testimony was relevant, and should have been admitted. Defendant should have the opportunity to fully pursue his defense on remand.
III. BRADY VIOLATION
Defendant also argues that the prosecution violated
Brady v Maryland
,
A. STANDARD OF REVIEW
Defendant failed to preserve his claim that the prosecution improperly suppressed evidence
by moving in the trial court for a new trial, or for relief from judgment.
People v Cox
, 268 Mich
App 440, 448; 709 NW2d 152 (2005). Although this Court generally reviews de novo
constitutional claims, such as an asserted
Brady
violation,
People v Dimambro
, 318 Mich App
204, 212; 897 NW2d 233 (2016), we review unpreserved claims for plain error.
People v
Dickinson
,
B. ANALYSIS
The United States Supreme Court held in
Brady
,
The government is held responsible for evidence within its control, even evidence unknown to the prosecution, Kyles v Whitley ,514 US 419 , 437;115 S Ct 1555 ; 131 L Ed 2d 490 (1995), without regard to the prosecution’s good or bad faith, United States v Agurs , 427 US 97, 100; 96 S Ct 2392; 49 L Ed 2d 342 (1976) (“If the suppression of evidence results in constitutional error, it is because of the character of the evidence, not the character of the prosecutor.”). Evidence is favorable to the defense when it is either exculpatory or impeaching. Giglio v United States , 405 US 150, 154;92 S Ct 763 ;31 L Ed 2d 104 (1972) (“When the ‘reliability of a given witness may well be determinative of guilt or innocence,’ nondisclosure of evidence affecting credibility falls within this general rule [of Brady ].”), quoting Napue v Illinois , 360 US 264, 269; 79 S Ct 1173; 3 L Ed 2d 1217 (1959). To establish materiality, a defendant must show that “there is a reasonable probability that, had the evidence been disclosed to the defense, the result of the proceeding would have been different. A ‘reasonable probability’ is a probability sufficient to undermine confidence in the outcome.” United States v Bagley ,473 US 667 , 682; 105 S Ct 3375; 87 L Ed 2d 481 (1985). This standard “does not require demonstration by a preponderance that disclosure of the suppressed evidence would have resulted ultimately in the defendant’s acquittal . . . .” Kyles ,514 US at 434 . The question is whether, in the absence of the suppressed evidence, the defendant “received a fair trial, understood as a trial resulting in a verdict worthy of confidence.” Id . In assessing the materiality of the evidence, courts are to consider the suppressed evidence collectively, rather than piecemeal. Id . at 436. [ Id . at 150- 151.]
Defendant’s argument presumes that the disclosure of the fire chiefs’ change in opinion for
the first time at trial amounts to a
Brady
violation. Defendant’s presumption is correct. Generally,
a criminal defendant does not have a constitutional right to discovery.
People v Bosca
, 310 Mich
App 1, 27;
The change in the chiefs’ opinion was not necessarily exculpatory, as it did not change the ultimate conclusion that the fire was incendiary. However, it was favorable to defendant because it was consistent with Kovarsky’s testimony, and because it provided a basis to impeach the fire chiefs’ testimony. Chief Sypula and Chief Carley testified on direct examination that they previously believed the fire had two points of origin and had since changed their opinions. Chief Sypula further testified on direct examination that he changed his opinion after he had seen the evidence report showing no ignitable liquids on the evidence collected from the office, but he had not amended his written report. Defendant confronted Chief Sypula with his report and his *8 preliminary examination testimony that he testified about two points of origin, and Chief Sypula again admitted that he had not amended his report after changing his opinion prior to trial. Defendant likewise confronted Chief Carley with his report stating that the fire had two points of origin and his failure to provide an amended report when he changed his initial opinion in preparing for trial. Although the prosecution elicited testimony about this change of opinion first, defendant emphasized on cross-examination that Chief Sypula and Chief Carley changed their opinions about the number of points of origin before trial without notifying defendant, and this change of opinion before trial was favorable to defendant because it allowed him to undermine the reliability of their testimony.
Although the evidence suppressed by the prosecution was favorable to defendant, and
material to the case, defendant has not shown that he is entitled to relief on his
Brady
violation
claim still because defendant has not shown that earlier disclosure would not have affected the
outcome of trial.
Cain
,
Moreover, defendant’s primary theory of the case was spontaneous combustion of the rag soaked with linseed oil that he had been using to finish a guitar in the days leading up to the fire, as he argued in closing. One of defendant’s employees testified about defendant using linseed oil on a rag to finish a guitar the day of the fire and for about five days preceding the fire. Kovarsky testified about rags and a metal paint container found on a shelf in the storage area believed to be the point of origin and his belief that the fire started as a result of spontaneous combustion. Indeed, defendant’s spontaneous combustion theory was consistent with the fire chiefs’ amended opinion that the single point of origin was a shelf in the storage room. Regardless, defendant has not shown that the prosecution’s late disclosure of the fire chiefs’ change of opinion would have likely affected the outcome of the trial.
We reverse, vacate defendant’s conviction and sentence, and remand for a new trial. We do not retain jurisdiction.
/s/ Kathleen Jansen /s/ Douglas B. Shapiro /s/ Michael J. Kelly
[1] Like insurance counselors, all insurance adjusters, with few exceptions, are required to be licensed in the State of Michigan. MCL 500.1222(1). However, an insurance counselor and an insurance adjuster serve separate and distinct purposes. See MCL 500.100 et seq .