Demanding Money from Shoplifters to Not Press Charges

[Lp:Jess]

My question involves court procedures for the state of: Indiana
I'm working in a retail business (30.000 sq. ft.) which has had an extremely serious problem with shop lifting. The owner never had any LP officer working the store until recently, so the losses were a big issue. I wasn't very experienced or familiar with loss prevention, but took the position to supplement my income. As time goes by I'm getting more adjusted to the position and in the near future would like to maybe take some type of course or study program to increase my skill and knowledge. Anyway, my question is, upon apprehending a shop lifter could I demand payment of 10 times the amount of the item(s) or the minimum of $300 at the time of apprehension in order to avoid court costs, etc. in small claims court? If they were to pay at the time of apprehension we wouldn't file a shoplifting report with the police and prosecuting attorney's office, we would have the report on file here at the store only. Or is it necessary or mandatory to file with the authorities? Currently we only call the police if the subject doesn't have any form of ID or becomes irate or out of control. Thanks to all in advance.

[souperdave]

So, it's like a pay-me-or-go-to-jail thing? Last I checked, that may very well enter in the realm of EXTORTION!

And quite possibly some sorta discrimination also.....say the morning 'lifter has $0.00 in their possession, and the afternoon 'lifter has half a mil taped around their waist, are you gonna ship the one to the pokey and let the other grease your palm?

You do know that LP is an honesty-based line of work? Just having to ask about something like this gives me a bit of insight as to where your head is, and it would not appear that your heart is into crime-fighting but perhaps into some sorta furtherance of dishonest activity.

You may wanna take a step back and reconsider your decision-making paradigm. Looks to be a prudent thing to do in my humble opinion.

[Lp:Jess]

Hi:Souperdave
Im not sure if you read my whole post or just half of it. We only call the police if the subject doesn't have any form of ID or becomes irate or out of control. My question is can we collect the civil demand at the time of apprehension in order to avoid court costs, etc. Saves the shoplifter court cost and so forth.

[PandorasBox]

Why do you want to save a thief court costs, etc? You don't know how many REPEAT offenders we have seen here who have been charged with their crimes.

No, you can't say "Pay us 10 times the value, or we call the cops". As mentioned, that is extortion.

What you can do is get a store-wide procedure going. The business owner needs to have a lawyer help set up a plan.

What places do is this: Have a person TRAINED in Loss Prevention surveil and detain the suspect. Then either the police are called, while paperwork is processed. A Civil Demand may be issued to cover the expenses involved with loss/damage of the product, loss of the money for the item being off the sales floor, surveillance and LP expenses.

Again, you should suggest this AND TRAINING to your employer. Otherwise, you (and the owner) are opening yourselves up to lawsuits and even criminal charges of your own.

- - - Updated - - -

Additionally, each state has laws regarding the Civil Demand - how much can be "demanded" based on the amount of theft. It is highly recommended that a store retain a lawyer or legal office who specializes is writing the Civil Demand letter (especially the wording), and the amounts that can be demanded based on stuff like damage to the items, merchandise values, etc.

Don't take this into your hands....again, have your employer get legal counsel in your area to place procedures for detaining shoplifters, and how to issue fines, etc.

You really don't want to go to jail yourself, right? If you charge a shoplifter 10 times the amount and it exceeds the States legal guidelines....you can face state charges, and I think Extortion is under Federal Law.

[bam!]

This is tricky water for you to tread. Ask your legal counsel to draft a civil demand form for voluntary payment on the spot.

I am experienced in civil demand laws and have developed the civil demand program for a major retailer. There is more to it than collecting the money. Think of this, is the money you collect on the spot going to be worth it when someone sues you personally and this family owned business?

Leave it to the pros. Have your boss call civil demand associates and see of their program can help you. There are a few retailers who collect on the spot and it works for them. They operate within the law and are successful. Most outsource it. Collecting civil demand can be a great offset to loss expense if done right.

Souper and pandora, the poster is not looking to grease their pocket and is not good at expanding what they wanna do. Dangerous situation.

[jk]

The demand in lieu of calling the police is extortion.

Beyond that, the multiplier you are considering is not anything close to what Indiana allows. You would prove yourself to be an extortionist quite soundly by making such a demand.

but to the more specific question:

My question is can we collect the civil demand at the time of apprehension in order to avoid court costs, etc.

Indiana law allows the merchant to sue the thief. It says nothing about allowing a demand without suing them.

Sec. 1. If a person has an unpaid claim on a liability that is covered by IC 24-4.6-5 or suffers a pecuniary loss as a result of a violation of IC 35-43, IC 35-42-3-3, IC 35-42-3-4, or IC 35-45-9, the person may bring a civil action against the person who caused the loss for the following:
(1) An amount not to exceed three (3) times:
(A) the actual damages of the person suffering the loss, in the case of a liability that is not covered by IC 24-4.6-5; or

[bam!]

This is just general advice and information. Do not take this as what you should do at your store!

INDIANA CIVIL RECOVERY LAW
IC 34-24-3-1
Offenses against property; recovery of damages, costs, and attorney's fee
Sec. 1. If a person suffers a pecuniary loss as a result of a violation of IC 35-43, IC 35-42-3-3, IC 35-42-3-4, or
IC 35-45-9, the person may bring a civil action against the person who caused the loss for the following:
(1) An amount not to exceed three (3) times the actual damages of the person suffering the loss.
(2) The costs of the action.
(3) A reasonable attorney's fee.
(4) Actual travel expenses that are not otherwise reimbursed under subdivisions (1) through (3) and are
incurred by the person suffering loss to:
(A) have the person suffering loss or an employee or agent of that person file papers and attend court
proceedings related to the recovery of a judgment under this chapter; or
(B) provide witnesses to testify in court proceedings related to the recovery of a judgment under this
chapter.
(5) A reasonable amount to compensate the person suffering loss for time used to:
(A) file papers and attend court proceedings related to the recovery of a judgment under this chapter; or
(B) travel to and from activities described in clause (A).
(6) Actual direct and indirect expenses incurred by the person suffering loss to compensate employees and
agents for time used to:
(A) file papers and attend court proceedings related to the recovery of a judgment under this chapter; or
(B) travel to and from activities described in clause (A).
(7) All other reasonable costs of collection.
IC 34-24-3-2
Irrebuttable presumption of retailer's pecuniary loss; insurance or indemnification prohibited
Sec. 2. (a) For purposes of determining the amount of damages recoverable under section 1(1) of this chapter,
there is an irrebuttable presumption that a retailer who brings a civil action under this chapter (or IC 34-4-30 before
its repeal) as the result of a violation of IC 35-43-4-2 (theft) or IC 35-43-4-3 (conversion) suffers a pecuniary loss in
the amount of:
(1) one hundred dollars ($100) regardless of whether:
(A) the property is returned to the retailer; or
(B) the actual retail value of the property is less than one hundred dollars ($100); or
(2) the retailer's actual damages; whichever is greater.
(b) An individual found liable in a civil action under this chapter (or IC 34-4-30 before its repeal) for violating IC
35-43-4-2 or IC 35-43-4-3 may not be indemnified or insured for any penalties, damages, or settlement arising
from the violation.
IC 34-31-4-1
Maximum limit of liability
Sec. 1. Except as provided in section 2 of this chapter, a parent is liable for not more than five thousand dollars
($5,000) in actual damages arising from harm to a person or damage to property knowingly, intentionally, or
recklessly caused by the parent's child if:
(1) the parent has custody of the child; and
(2) the child is living with the parent.
Indiana Civil Recovery Law (IC 34-24-3-1, IC 34-24-3-2 and IC 34-31-4-1)

Summary
In the state of Indiana, merchants are allowed to recover a portion of the costs involved in protecting its assets. Store policy is to attempt to collect a civil demand fee of $300. You are not obligated to pay the Civil Demand fee today. The payment of Civil Demand has no bearing as to whether or not you are prosecuted. I am informing you of Indiana law.
Summary:
1. A conviction is not required.
2. Applies to adults and parents of legal guardians of minors.
3. Store policy is to collect a flat fee of $300 on all incidents with no additional damages included.


Verbage you can use

The state of Indiana has a law permitting retailers to recover civil damages from you (or the parent or guardian of the minor), as a result of this incident. Specifically, Indiana Code Section 34-24-3-1 provides that a person who shoplifts merchandise from a retailer is liable to the retailer for up to three (3) times the actual damages suffered by the retailer. Pursuant to Indiana Code Section 34-24-3-2, there is an irrebuttable presumption that a retailer suffers a pecuniary loss of $100.00, regardless of whether the property is returned to the retailer or the value of the stolen property is less than $100.00. This claim is totally separate from any criminal punishment or penalties arising from this incident. Pursuant to Indiana code, We are informing you of Indiana law and will be proceeding with this civil demand penalty claim against you (or the parent or guardian of the minor.)

You can collect at time of apprehension and you can file a civil suit the day of apprehension. Make sure you tell the person that you will either be A) calling the police or b) releasing them and that payment has no bearing on either.