Lead Opinion
The defendant, Daniel P. Hynes, appeals his conviction after a jury trial in Superior Court (Barry, J.) of one count of theft by extortion. See RSA 637:5, II(i) (2007). We affirm.
I. Background
The jury could have found the following facts. The defendant is an attorney who was admitted to the New Hampshire and Massachusetts Bars in 2006. In December of that year, he sent a “Cease and Desist/Demand Letter” to Claudia Lambert, the owner of Claudia’s Signature Salon in Concord (the salon). The letter, written on “Daniel P. Hynes Esq.” letterhead and noting his admission to the New Hampshire Bar, stated:
I am writing in regards to your company’s policy of pricing for different types of haircuts. It has been brought to my attention that your business charges $25 for haircuts but $18 for a Men’s cut and $12 for a children [sic] haircut. Such a distinction in price based on gender and age is discrimination in violation of the law. Accordingly, I demand you immediately cease this unfair pricing and charge customers in a more appropriate manner, such as by the length of their hair or the amount of time it would take.
The letter claimed that the salon’s practice was both unlawfully discriminatory in violation of RSA 354-A:17 (2009), and constituted an unfair trade practice in violation of RSA chapter 358-A (2009). The letter went on to state:
I demand that you immediately cease your unlawful practice of charging for haircuts based upon age and gender. Should you not comply I will be forced to file a complaint with the State Commission for Human Rights while reserving all rights to remove and file in Superior Court. In addition, I demand payment in the amount of $1000 in order to avoid litigation .... I believe $1000 is a fair amount as it is the minimum that would be awarded*192 for an unfair trade practice alone. You have ten (10) days to comply .... Should you fail to comply additional steps will be taken including filing with the State Commission for Human Rights and potential removal to Superior Court. If such action is necessary I will seek all remedies available including but not limited to an injunction, damages for discrimination, damages for the unfair trade practice, ill-gotten gains, punitive damages, attorney fees and costs. If you object or otherwise wish to discuss the above matter you may have your attorney contact me.
The letter was signed “Daniel P. Hynes Esq.”
At some point after receiving the letter, Lambert’s husband, Bernard Nardi, called the defendant to see if they could “work out a settlement.” During the ensuing conversation, the defendant indicated he was not a client of the salon and had found it, along with its prices, on the Internet. Nardi offered, and the defendant accepted, $500 to settle the matter. The defendant then prepared settlement documents reflecting the agreement, which he faxed to Nardi’s real estate business office. The documents indicated that, in consideration of five hundred dollars received, the defendant would discharge the salon from any claims and demands regarding its alleged discriminatory practice. A meeting was scheduled to execute the documents.
Nardi subsequently contacted the New Hampshire Attorney General’s Office, and it was determined that an investigator would attend the settlement meeting posing as Lambert’s business partner. At the settlement meeting, the defendant again stated that he did not have a client. He further indicated that he, personally, would keep the $500 he received from Nardi, and that he was currently in negotiations with other attorneys in response to similar letters he had sent out. The investigator executed the settlement agreement, providing $500 to the defendant. After taking possession of the $500, the defendant was arrested and charged with theft by extortion. See RSA 637:5, II(i).
Prior to trial, the defendant moved to dismiss, arguing that his conduct is not prohibited by RSA 637:5, II(i), and, even if it is, the statute is unconstitutional. The trial court denied the motion, and the defendant was subsequently convicted. This appeal followed.
On appeal, the defendant argues that RSA 637:5, II(i) does not prohibit his conduct, either because it does not include a threat to sue, or because he stood to substantially benefit from the threatened conduct. In the alternative, he asserts that RSA 637:5, II(i) is unconstitutionally vague and overbroad. Finally, he argues that the trial court improperly instructed the jury. We address each argument in turn.
The defendant argues that RSA 637:5, II does not prohibit his conduct because none of its eight specific provisions includes a threat to file a lawsuit. In addition, he asserts that the term “substantially benefit” encompasses the kind of non-pecuniary satisfaction he would receive by ending the salon’s alleged discrimination, and that this provision was satisfied by his standing to bring suit against the salon under RSA chapter 354-A (2009).
Resolution of this issue requires that we interpret RSA 637:5, II(i), which presents a question of law that we review de novo. State v. Gallagher,
The defendant first asserts that we should interpret RSA 637:5, II(i) as excluding any threat to sue, regardless of whether there is a basis for the threatened suit, because it does not constitute the type of harm contemplated by the statute. In support of this assertion, he argues that this type of threat falls outside the core purpose of the extortion statute, and that including a threat to sue in the statute would chill the right of access to the courts. The defendant also argues that the rule of lenity supports his interpretation. We disagree.
At common law, “extortion consisted of the corrupt taking of a fee by a public officer, under color of his office, where no fee is due, or not so large a fee is due, or the fee is not yet due.” State v. O’Flynn,
Here, the defendant suggests that a threat to sue is inconsistent with the purpose of the statute in part because the “threat of civil litigation ... does not give rise to the kind of intimidation that constitutes extortion.” While we agree that simply threatening to institute a lawsuit does not, standing alone, carry the inherent hallmarks of an extortionate act, our inquiry does not end there. Unlike the other provisions within RSA 637:5, II, the plain language of RSA 637:5, II(i) does not simply evaluate the type of threat that was made; that is, the substance of the threat. Rather, it requires us to consider both the threat’s potential harm to the person threatened as well as its potential benefit to the person making the threat. Thus, contrary to the defendant’s interpretation, we cannot simply evaluate the threat on its face and disregard the circumstances under which it was made. In order to make a proper determination as to these additional factors, we must consider all of the circumstances surrounding that threat on a case-by-case basis. We, therefore, cannot conclude, as a matter of law, that there are no circumstances under which a threat to sue would constitute extortion.
We recognize that several courts have drawn a contrary conclusion, finding that a threat to sue, even if baseless, does not constitute extortion. See United States v. Pendergraft,
A wrongful purpose does not necessarily make the means threatened to accomplish it wrongful. The means threatened must be of a sort that will instill fear .... The threat of litigation, being a*195 lawful means in which a third party assigned by government to decide disputes will decide that very dispute, is not such a means.
Rendelman,
However, we find these cases distinguishable, because the courts’ analyses considered the wrongful means — the threat — independent from the wrongful objective — the taking of property. As such, the type of threat made is a determinative factor. RSA 637:5, II(i) does not make such a distinction. Rather, as discussed above, it more broadly considers the consequences of the threat, both to the person making it and to its intended recipient. Furthermore, RSA 637:5, II(i) does not require there to be fear as a result of the threat, but, rather, only that there be substantial harm. We do not believe that these terms are interchangeable.
Further supporting our interpretation, other courts have held that an extortion conviction may be supported by the threat to bring a civil suit. The United States Court of Appeals for the First Circuit has indicated that, under federal law, an extortion charge may be based upon the threat of litigation if there is no basis for the threatened suit. See United States v. Sturm,
We also disagree with the defendant’s contention that this interpretation chills an individual’s right of access to the courts. By no means does our holding imply that every demand for money, buttressed by a threat to sue, constitutes extortion. Rather, we are simply denying the defendant’s contention that a threat to sue may never constitute extortion. Moreover, we decline to apply the rule of lenity in support of the defendant’s interpretation. The rule of lenity “forbids interpretation of a federal statute so as to increase the statutory penalty” when legislative intent is unclear and “is applicable only where statutory ambiguity has been found.” State v. Ravell,
Under the defendant’s interpretation of “benefit,” the extortion statute could be circumvented by any social injustice or generalized concern, regardless of how attenuated the connection between it and the defendant or whether he had sustained some actual injury to support the claim. In essence, any perceived bias would be sufficient to evade a charge of extortion. We do not believe the legislature intended such a result. We agree with the trial court that the phrase “substantially benefit” is not so broad as to encompass “an altruistic sense of accomplishment for ridding the world of a perceived injustice.” Indeed, as Roth explained, this type of conceptual interpretation “is far too abstract to constitute a substantial benefit under this statute; it bespeaks of a societal goal, not personal gain. Allowing such a tenuous advantage to fulfill the substantial benefit requirement would simply eviscerate the statute.” Roth,
The defendant next argues that his standing to pursue a lawsuit under RSA chapter 354-A removed him from the ambit of RSA 637:5, II(i) by “substantially benefit[ting]” him. The dissent agrees in part, concluding that the defendant had a good faith basis to believe that the threatened action had merit. We disagree with both contentions.
We begin by noting that the defendant threatened the salon with a claim under the Consumer Protection Act (CPA), RSA chapter 358-A, demanding “$1000 in order to avoid litigation” because “$1000 is a fair amount as it is the minimum that would be awarded for an unfair trade practice alone.” Even assuming that the defendant marshaled a good faith argument that the salon was engaging in a prohibited act, he fails to explain exactly how his threatened CPA claim fits within the statutory language conferring private-party standing upon only those “injured by another’s use of any method, act or practice declared unlawful.” RSA 358-A: 10, I (emphasis added); see, e.g., Remsburg v. Docusearch,
Among other things, RSA chapter 354-A prohibits unlawful discriminatory practices in a place of public accommodation, RSA 354-A:17, and permits only persons “aggrieved,” RSA 354-A:21, 1(a) (2009); RSA 354-A:21-a, I (2009), to complain of discriminatory practices. In the abstract, the word “aggrieved” may leave room for advocacy regarding its intended meaning, but no reasonable attorney would construe the term in a vacuum. The defendant, who lacked a client and did not personally patronize the salon, could not reasonably conclude that he was “aggrieved” by virtue of his general interest in ending sex discrimination and its distressing effect upon him.
The State Commission for Human Rights presumes that all participants in RSA chapter 354-A proceedings have direct interests. See N.H. Admin. Rules, Hum 311.01(a) (permitting intervention only by “person or entity, other than a party, having a direct interest in the outcome of the public adjudicative hearing” (emphasis added)). Furthermore, we have never construed “aggrieved” to confer standing in the absence of a direct and particularized interest. See Babiarz v. Town of Grafton,
If any doubt remained about the meaning of “aggrieved,” it is resolved after reviewing the monetary remedies available to an “aggrieved” person. If an “unlawful discriminatory practice” is found in a public accommodation action brought before the commission, the claimant may receive, within the discretion of the commission, only “compensatory damages.” RSA 354-A:21,11(d) (2009); see BLACK’S LAW DICTIONARY 416 (8th ed. 2004) (defining compensatory damages as “[d]amages sufficient in amount to indemnify the injured person for the loss suffered”); see, e.g., Smith v. Cote,
We respectfully disagree with the dissent’s conclusion that the defendant had a good faith basis to argue for standing under RSA chapter 354-A. See Kukene v. Genualdo,
Scarborough centered upon an employment dispute and the defendant-employer’s challenged misconduct was directly applied to the plaintiff. We looked to the Supreme Court’s decision in Teamsters v. United States,
Unlike the plaintiff in Scarborough who actually contacted the defendant employer and attended a job interview, Scarborough v. Arnold,
Turning to the circumstances of this case, we conclude that RSA 637:5, II(i) applies to the defendant’s conduct. It is apparent that the defendant, acting as an attorney, sent a letter to the salon demanding money and threatening to file a lawsuit if it did not pay him. The defendant did not have a client who had suffered from the alleged discriminatory pricing at the salon, nor had he been a client of the salon himself. In fact, the money the defendant demanded, and eventually received, was for his own personal gain. For the reasons set forth more fully above, we fail to see how the threatened action would have substantially benefited the defendant. As the State aptly explains, it was the defendant’s “threat to bring an action which... as an attorney [he] knew he could not pursue, coupled with his demand for a cash payment to which he was not legally entitled, that makes the defendant’s conduct criminal.” We, therefore, conclude that the trial court did not err in denying the defendant’s motion to dismiss.
III. Constitutionality of RSA 637:5, II(i)
The defendant next argues that, even if RSA 637:5, II(i) prohibits his conduct, we must vacate his conviction because the statute is unconstitutionally vague on its face and as applied to him under both the United States and New Hampshire Constitutions. In addition, the defendant argues that RSA 637:5, II(i) is unconstitutionally overbroad, both on its face and as applied.
We review questions of constitutional law de novo. State v. MacElman,
A. Vagueness
“Where a defendant’s vagueness claim does not involve a fundamental right, a facial attack on the challenged statutory scheme is unwarranted.” MacElman,
A statute can be impermissibly vague for either of two independent reasons: (1) it fails to provide people of ordinary intelligence a reasonable opportunity to understand the conduct it prohibits; or (2) it authorizes or even encourages arbitrary and discriminatory enforcement. Id. “A statute is not unconstitutionally vague as long as its prohibitions are set out in terms that the ordinary person exercising ordinary common sense can sufficiently understand and comply with.” State v. Lamarche,
The defendant argues that RSA 637:5, II(i) is void on its face because the phrase “substantially benefit” is vague. Specifically, the defendant notes that the statute does not specify a required mental state or attach an objective measure in defining that phrase. He further notes that the phrase is not of the type that needs to be expressed in general terms. He argues it is the “absence of all of these saving characteristics” that makes RSA 637:5, II(i) vague on its face.
We conclude that RSA 637:5, 11(1) provides a person of ordinary intelligence a reasonable opportunity to understand the conduct it prohibits. It is well established that the necessary specificity required to uphold a statute “need not be contained in the statute itself, but rather, in the context of related statutes, prior decisions, or generally accepted usage.” State v. Porelle,
Moreover, although “a scienter requirement in a statute ameliorates” a vagueness concern, MacElman,
Turning to the defendant’s as-applied challenge, we conclude that the statute provided him with a reasonable opportunity to know that his conduct was proscribed by the statute. See Porelle,
Because the defendant does not argue that the statute may be subject to arbitrary enforcement, we do not address it. Cf. Lamarche,
B. Overbreadth
“The purpose of the overbreadth doctrine is to protect those persons who, although their speech or conduct is constitutionally protected, may well refrain from exercising their rights for fear of criminal sanctions by a statute susceptible of application to protected expression.” Gubitosi,
If a statute is found to be substantially overbroad, the statute must be invalidated unless the court can supply a limiting construction or partial invalidation that narrows the scope of the statute to constitutionally acceptable applications. If, on the other hand, a statute is not substantially overbroad, then whatever overbreadth may exist should be cured through case-by-case analysis of the fact situations to which its sanctions, assertedly, may not be applied.
Id. at 727 (quotation omitted).
The defendant argues that RSA 637:5, II(i) is overbroad as it applies to him because his conduct is constitutionally protected. Specifically, the defendant argues that RSA 637:5, II(i) infringes upon both his freedom of speech, see U.S. CONST, amend. I; N.H. CONST, pt. I, art. 22, and his right to petition the government for redress of his grievances, see U.S. CONST, amend. I; N.H. CONST, pt. I, arts. 14, 32. He further argues that his prosecution under RSA 637:5, II(i) is not permissible as a reasonable time, place and manner restriction. We first address the defendant’s arguments
The defendant’s arguments can be collectively disposed of by simply recognizing that, although we have never addressed this issue, we are not inclined to find the defendant’s action protected under the State Constitution. It is well established that the First Amendment does not immunize a person’s pursuit of baseless litigation. See Bill Johnson’s Restaurants, Inc. v. NLRB,
The first amendment interests involved in private litigation — compensation for violated rights and interests, the psychological benefits of vindication, public airing of disputed facts — are not advanced when the litigation is based on intentional falsehoods or on knowingly frivolous claims. Furthermore, since sham litigation by definition does not involve a bona fide grievance, it does not come within the first amendment right to petition.
Bill Johnson’s Restaurants,
Litigation is objectively baseless if “no reasonable litigant could realistically expect success on the merits.” Professional Real Estate Investors, Inc. v. Columbia Pictures Industries, Inc.,
Not only was the threatened litigation objectively baseless, but in threatening such litigation the defendant was motivated by an “unlawful purpose.” BE&K Constr. Co. v. NLRB,
Because application of RSA 637:5, II(i) to the defendant’s actions does not impermissibly infringe upon activity protected by the State Constitution, we conclude that such application is not unconstitutionally overbroad. Thus, we do not reach the defendant’s argument concerning whether his prosecution constitutes a reasonable time, place and manner restriction upon protected speech. Because the Federal Constitution offers the defendant no greater protection, see Bill Johnson’s Restaurants,
The defendant next argues RSA 637:5, II(i) is unconstitutionally broad on its face. We first address the defendant’s arguments under the State Constitution, and cite federal opinions for guidance only. Ball,
RSA 637:5, II(i) is a catch-all definition of extortion following eight particularized examples of the crime. The lack of particularization in RSA 637:5, II© does not sweep all conceivable fact-scenarios within its proscription, but only the same type as the enumerated acts. See State v. Sideris,
Simply put, the term “extortion,” as illustrated by the eight particular examples and the language within O’Flynn, impliedly excludes legitimate claims to property through threats. See State v. Pauling, 69 P.3d
Because the Federal Constitution offers the defendant no greater protection under these circumstances, compare Broadrick v. Oklahoma,
IV. Jury Instructions
The defendant asserts that the trial court inadequately instructed the jury as to the mental state elements of theft by extortion. Specifically, he argues that the court’s instruction was flawed in that it “did not require the jury to make a finding as to whether [he] actually knew the [threatened] suit lacked a basis.” This issue, however, was not preserved for appeal.
As a general rule, we will not consider grounds of objections not specified or called to the court’s attention at the trial. This requirement, grounded in common sense and judicial economy, affords the trial court an opportunity to correct an error it may have made and is particularly appropriate where an alleged error involves a jury instruction.
State v. Eldredge,
Affirmed.
Dissenting Opinion
dissenting. The majority concludes that RSA 637:5, 11(b) (2007) is not overbroad as applied to the defendant, Daniel R Hynes, because it finds that his threatened lawsuit was “objectively baseless.” I disagree with this conclusion, and, therefore, respectfully, dissent.
The majority concludes that the threatened suit is objectively baseless because the defendant “could not have realistically expected success on the merits of the threatened suit where he had no standing to pursue it.” In my
Given these two factors, I would conclude that it was not objectively baseless for the defendant to believe he possessed standing to pursue a claim under RSA chapter 354-A. See also N.H. R. PROF. CONDUCT 3.1. (lawyer may assert issue when there is good faith argument for extension, modification or reversal of existing law).
