City of Lake Oswego v. $23,232.23 in Cash

916 P.2d 865, 140 Or. App. 520, 1996 Ore. App. LEXIS 641
CourtCourt of Appeals of Oregon
DecidedMay 1, 1996
Docket91-5-372; CA A77119
StatusPublished
Cited by7 cases

This text of 916 P.2d 865 (City of Lake Oswego v. $23,232.23 in Cash) is published on Counsel Stack Legal Research, covering Court of Appeals of Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of Lake Oswego v. $23,232.23 in Cash, 916 P.2d 865, 140 Or. App. 520, 1996 Ore. App. LEXIS 641 (Or. Ct. App. 1996).

Opinions

[522]*522DE MUNIZ, J.

Claimant appeals a judgment forfeiting his interest in defendants $23,232.23 in United States currency and a Motorola pager1 following an in rem forfeiture proceeding. We affirm.

On May 10,1991, claimant was stopped in Washington County for speeding. He consented to a pat down and told the officers that he had $23,000 in cash. He was handcuffed and searched, and the police discovered a folded paper that they opened. The paper contained tar heroin. The owner of the car later consented to a search, and the police found a plastic bag with a syringe and spoon.

Plaintiff City of Lake Oswego (City) brought this forfeiture proceeding in May 1991 pursuant to Oregon Laws 1989, chapter 791, as amended by Oregon Laws 1991, chapter 934 (Act).2 Trial was in August 1992, and a judgment of forfeiture was entered in September.

The incident also led to the criminal prosecution of claimant in a separate proceeding. In June 1992, he was convicted of, inter alia, possession of a controlled substance (heroin). Claimant appealed that conviction, challenging the denial of his motion to suppress. We held that his motion should have been allowed. We held that the heroin was illegally seized, and, therefore, that his statements about his use and possession of heroin were tainted by the illegality. State v. Mituniewicz, 125 Or App 41, 864 P2d 1359 (1993). We reversed the conviction for possession and remanded for a new trial.

We first address claimant’s arguments that our ruling in the criminal case requires reversal of the forfeiture here. He argues that a prior determination regarding admissibility in a related criminal proceeding is binding in a forfeiture action, U.S. v. $28,980 in U.S. Currency, 786 F Supp 899, 901 (D Or 1990), and that evidence derived from an illegal search is inadmissible in a forfeiture proceeding. One [523]*523Plymouth Sedan v. Pennsylvania, 380 US 693, 85 S Ct 1246, 14 L Ed 2d 170 (1965). He contends that, without the evidence that was suppressed in the criminal proceeding, City failed to meet its burden in this forfeiture case of proving that there was probable cause to believe that the property was subject to forfeiture.

However, even assuming that claimant is correct, he has waived any objection to admissibility of the evidence here. Claimant stipulated that the finding of facts from the motion to suppress, including that tar heroin was discovered, would be entered in the forfeiture hearing.3

We next address claimant’s assignment that the trial court erred in finding that City proved the allegations of its complaint. City alleged that

“[o]n or about May 11,1991, defendants, $23,232.23 in cash and Motorola pager, were used and/or intended to be used to commit and facilitate the:
“1) possession of heroin, a controlled substance; and/or
“2) delivery of heroin [.]
“On or about May 11, 1991, defendants, $23,232.23 in cash and Motorola pager, were profit and/or proceeds of delivery of heroin, a controlled substance [.]”

Claimant argues that the only evidence was that the currency was to pay for a kilo of cocaine and that City presented “absolutely no evidence” to support its allegations that the currency was used in the possession or delivery of heroin or was profit from the delivery of heroin.

[524]*524At the forfeiture hearing, the arresting officers testified that claimant originally stated that the source of the $23,000 was from an insurance settlement and the 1981 sale of a house, that he had buried the money because he did not trust banks and that he was going to use the money for a down payment on a house. The officers testified that claimant later told them that a kilo of cocaine would cost $23,000 on the market, and, when the officers confronted claimant with the fact that $23,000 was the amount of money he had and that the money appeared not to have been buried, claimant then told them that he was delivering kilos of cocaine, and the money was in payment.

Claimant denied that he had given that information to the police. His testimony was that the money came from the sale of a farm and from a judgment in a personal injury case and that, when he was stopped, he was on his way to give the money to the seller as a down payment on a house.

The trial court did not find claimant’s testimony credible. It found:

“Claimant did obtain a kilo of heroin from some dealer in Wilsonville and transported it to a party in Vancouver, Washington, travelling through Clackamas and Multnomah Counties, and obtained $23,000 plus in exchange for the cocaine and was coming back to Wilsonville to pay that money to the dealer.
* * * *
“[T]he $23,000 that claimant had when he was stopped was from the sale of drugs, whether cocaine or heroin, which claimant was intending to purchase.”

City argues that any variance between the allegation that the money was used to facilitate the sale of heroin and the proof that it was used in the sale of cocaine is not material. City argues that, even though the court’s findings interrelated heroin and cocaine, the court clearly found that the currency constituted profits and proceeds from the sale of controlled substances. It argues that that is the conduct that is prohibited under Section 2(11)4 and that it met its burden.

[525]*525Judicial forfeiture proceedings “shall be governed by the Oregon Rules of Civil Procedure to the extent that they do not conflict with specific provisions of chapter 791, Oregon Laws 1989.” Section 7(4).5 City did not move to amend the pleadings to conform to the evidence. ORCP 23 B. However, under ORCP 12 B,

“[t]he court shall, in every stage of an action, disregard any error or defect in the pleadings or proceedings which does not affect the substantial rights of the adverse party.”

Before enactment of ORCP, a variance was not deemed material unless it was prejudicial to the adverse party. Goad v. Maxwell, 273 Or 553, 556, 542 P2d 488 (1975). The party that asserted prejudice must have been ihisled or denied a fair presentation of its case. Tauscher v. Doernbecher Mfg. Co., 153 Or 152, 158, 56 P2d 318 (1936); Stokes v. Brown, 20 Or 530, 532, 26 P 561 (1891).

The pleadings allege that City’s claim of forfeiture arose from the events that occurred on May 11 and that the claim was brought pursuant to Oregon Laws 1989, chapter 791. Under Section 3(6), items subject to forfeiture include

“[a]ll moneys * * * furnished or intended to be furnished by any person in the course of prohibited conduct, all proceeds of or from prohibited conduct, and all moneys * * * used or intended to be used to facilitate any prohibited conduct[.]”

“Prohibited conduct” includes conduct under ORS 475.992. Section 2(11). ORS 475.992, in turn, makes it a crime to possess, manufacture or deliver

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City of Lake Oswego v. $23,232.23 in Cash
916 P.2d 865 (Court of Appeals of Oregon, 1996)

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Bluebook (online)
916 P.2d 865, 140 Or. App. 520, 1996 Ore. App. LEXIS 641, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-lake-oswego-v-2323223-in-cash-orctapp-1996.