Berkelhammer v. Potter

23 F.2d 375, 1928 U.S. App. LEXIS 3167
CourtCourt of Appeals for the First Circuit
DecidedJanuary 18, 1928
DocketNos. 2109, 2139
StatusPublished
Cited by1 cases

This text of 23 F.2d 375 (Berkelhammer v. Potter) is published on Counsel Stack Legal Research, covering Court of Appeals for the First Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Berkelhammer v. Potter, 23 F.2d 375, 1928 U.S. App. LEXIS 3167 (1st Cir. 1928).

Opinion

JOHNSON, Circuit Judge.

As these two eases grow out of the same subject-matter, they may be treated in one opinion.

They are before us upon an agreed statement of facts, which is in substance as follows:

Jacob A. Kirsh, sometimes called Jacob A. Kirsch, of New York, on or about the 12th day of July, 1921, was the legal owner of the steamship Tyburton and her cargo of 250 drums of alcohol, which cleared the port of New York with her cargo for Monrovia, Liberia, and called at the port of Boston, making an entry at the custom house to take on additional cargo. Prohibition Director Potter, through his agents, on July 13, 1921, seized the cargo of the vessel, amounting to 37,364.4 proof gallons of alcohol. On October 31, 1921, Kirsch filed a petition for the return of the alcohol. No criminal prosecution was commenced against anybody in connection with the seizure- of this cargo, nor forfeiture proceedings against the alcohol seized. On March 6,1923, the District Court ordered the alcohol to be returned to the petitioner Jacob A. Kirsch, but on March 13, 1923, this order was revoked, and upon March 19, 1923, the following order was made:

“This cause came on to be heard at this present December term of this court, and, the respondent not objecting, the court finds that certain alcohol, viz. 250 drums of alcohol, as set forth in an amended petition on file in said court, were on the 13th day of [376]*376July, 1921, lawfully held and possessed by the petitioner, and that said alcohol was on said 13th day of July, 1921, wrongfully and unlawfully seized by officers of the United States; and it is now, to wit, March 19, 1923, ordered that said alcohol now in the possession of Elmer C. Potter, prohibition director for the district of Massachusetts, be returned or delivered to Jacob A. Kirsch, petitioner, as prayed for in said petition, upon the said petitioner exhibiting to said Potter satisfactory evidence that all legal taxes upon said alcohol have been paid, or giving to said Potter and to the collector of internal revenue satisfactory assurance in the usual form that said alcohol will be exported, it being understood that, if the said alcohol is not to be exported, it will be subject to the same tax as on alcohol sold in this country.”

On June 18, 1925, a motion was filed by the United States attorney, stating that the conditions of the order of March 19, 1923, had not been complied with, and that the government had been put to great expense for storage of said alcohol, and praying that Kirsch lose all right to the same and be perpetually enjoined from claiming it from the United States, or any of its officers or agents, if he did not comply with the conditions of the order of March 19, 1923, within 10 days.

On June 29, 1925, this motion was granted by the District Court, and the alcohol ordered forfeited and destroyed by the United States marshal. No appeal from the allowance of this motion was taken until December 29, 1925.

On July 14, 1923, Jacob Berkelhammer filed in the superior court for Suffolk county a bill in equity against Jacob A. Kirsch, Milton' H. Baleh, and Elmer C. Potter, setting forth that he had loaned Krsch the sum of $18,400, that Potter had possession of 250 drums of alcohol, the property of Krsch, and that an order had been entered for the delivery of said alcohol to Krsch. In this bill it was sought to reach said alcohol to respond to any judgment that the plaintiff might .recover. A temporary injunction against the destruction of said alcohol by Potter was denied, and the bill was dismissed as to him.

On July 28, 1925, counsel for Berkelhammer brought to the attention of the District Court the pendency of his bill in the superior court of Suffolk county and asked'that the alcohol be sold to legal permittees. The court then modified its former order and ordered part of the alcohol sold to legal permittees.

Gn September 10, 1925, a return was filed by the United States marshal showing the destruction of 132 drums of alcohol and the sale of 117 drums, containing 11,636 gallons, for $49,453, and on said date Jacob Berkelhammer asked leave to intervene and file a petition to be allowed $16,400, with interest, out of the proceeds of said sale. He was granted leave to do so.

On January 12, 1926, he obtained judgment in the superior court of Suffolk county against Jacob A. Kirsch for $19,059.53, and then amended his petition to include a statement to this effect.

His petition was denied on September 28, 1926, the court making the following statement in its order:

“On March 19, 1923, this court gave Krsch the right to withdraw the liquor for export on showing satisfactory evidence that the taxes had been paid. This he did not do, and the liquor was sold. Krsch forfeited his right to. the liquor by not obeying the order of the court. As the petitioner’s claim depends on his debtor’s title, the petition must fail. Petition denied.”

From this order Berkelhammer appealed October 9, 1926.

On February 19, 1926, Kirsch filed a petition in which he prayed “that the court order the said $49,603, or whatever the sum may be now in the hands of the clerk of the District Court of the Massachusetts district, the same being proceeds of the sale of the petitioner’s alcohol, be turned over.forthwith to the said petitioner.”

This petition was denied October 6, 1926, and a final decree entered February 14,1927, from which Krsch appealed May 9, 1927.

The assignments of error of both appellants assail the order of the District Court of March 19, 1923, which, after it had found the appellant Kirsch, as petitioner for the return of the property seized, to have been the lawful owner and in lawful possession of the alcohol, and that it had been wrongfully and unlawfully seized by officers of the United States, and ordered it returned to the petitioner, had annexed as a condition of its return that the petitioner should exhibit to the prohibition enforcement officer satisfactory evidence that all legal taxes upon said alcohol had been paid, and give to him and to the collector of internal revenue satisfactory assurance in the usual form that said alcohol would be exported, it being understood that if the said alcohol was not to be exported it would be subject to the same tax as on alcohol sold in this country; also that the court erred in holding that Krsch had forfeited his right to the alcohol by not obey[377]*377ing the order of the court; that the court erred in finding and holding that Kirsch was not entitled to the proceeds of the sale of the alcohol; that the said alcohol was legally sold and disposed of under an order of the court; and that the petitioner was not entitled to the funds now in the hands of its clerk. The appellant Berkelhammer also assigns as error that the court erred in holding that he was not entitled to have liis execution satisfied out of this fund.

It is claimed by tho government that Kirsch, by his failure to comply with the order of June 29, 1925, lost “all right, title, and interest in the said alcohol,” and was by said order “perpetually enjoined from claiming the same from the United States or any of its officers or agents”; that Kirsch did not seasonably appeal from this order, and that on February 19, 1926, the date of his petition, the United States was not in possession of goods or funds in which Kirsch possessed property rights; that the order of June 29, 1925, amounted to a forfeiture to the United States, and Kirsch passively acquiesced in it.

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Related

Goodman v. Lane
48 F.2d 32 (Eighth Circuit, 1931)

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Bluebook (online)
23 F.2d 375, 1928 U.S. App. LEXIS 3167, Counsel Stack Legal Research, https://law.counselstack.com/opinion/berkelhammer-v-potter-ca1-1928.