Golder v. United States

15 Cl. Ct. 513, 1988 U.S. Claims LEXIS 150, 1988 WL 96027
United States Court of Claims·Decided September 19, 1988·No. No. 525-83C·Published·Cited by 27 cases

Opinion

OPINION

FUTEY, Judge.

This action arises from a seizure of a Cessna Aircraft by the United States Drug Enforcement Agency pursuant to the Controlled Substance Act, 21 U.S.C. § 881. The aircraft was subsequently released to the primary lienholder, General Electric Credit Corporation of Tennessee, which successfully petitioned the United States Department of Justice for remission and mitigation. Thereafter, a jury found against forfeiture in a government instituted action against the aircraft. Plaintiffs in this action claim that the seizure and release of the aircraft, in which they had a property interest, constitutes a violation of their rights under the Fifth Amendment. This case is presently before the court on defendant’s motion for summary judgment. For the reasons discussed herein the defendant’s motion is granted and the plaintiffs’ complaint is dismissed.

Factual Background

On November 9, 1977, agents of the United States Department of Justice Drug Enforcement Administration (DEA) seized a 1976 Cessna TCM, Golden Eagle II Aircraft for an alleged violation of the Controlled Substance Act. 21 U.S.C. § 8811 [515] The agents acted upon information gathered during an investigation which purportedly led them to believe that Donald Golder2, the plaintiffs son, and other persons were utilizing the aircraft to facilitate the sale of marihuana.3 Plaintiffs, Vicki Cox Golder and Lloyd W. Golder, III, d/b/a L & V Ranch Locators, Inc., the registered owners of the aircraft, were notified of the DEA action immediately. General Electric Credit Corporation of Tennessee (GECC-TN), the first encumbrance holder on the aircraft4, was notified of the seizure on the following day. On November 21, 1977, plaintiffs became in default under the terms of the purchase money loan granted by GECC-TN on the aircraft and remained in default until a settlement was reached in this matter in the United States District Court for the District of Arizona. General Electric Credit Corporation of Tennessee v. Lloyd W. Golder and Vicki Cox Golder, No. CIV 79-099-TUC ACM (D.A.Z. Oct. 12, 1982).

The DEA sent written notice of the seizure of the aircraft to the plaintiffs and GECC-TN on November 25, 1977. That notice advised of the government’s intention to commence a forfeiture action against the aircraft under 19 U.S.C. §§ 1610-12 and 21 C.F.R. § 1316.78, and the process for filing petitions for remission and mitigation under 19 U.S.C. § 1618 and 21 C.F.R. §§ 1316.79-1316.81. GECC-TN filed a petition for remission and mitigation of the aircraft with the United States Department of Justice on December 12,1977. A petition for remission and mitigation was also filed by plaintiffs on December 21, 1977.

In addition, on November 25, 1977, the DEA requested that the United States Attorney for the Northern District of New York institute condemnation proceedings against the aircraft pursuant to 21 U.S.C. § 881. The United States Attorney henceforth filed a complaint for forfeiture in the district court, which was amended on January 9,1978. United States v. 1976 Cessna TCM Airplane, No. 77-CV-526 (N.D.N.Y. March 27, 1982). Thereafter, a United States Marshall took possession of the aircraft pursuant to a warrant of seizure.

Plaintiffs filed an answer to the government’s amended complaint for forfeiture on January 26, 1978, demanding the return of the aircraft and dismissal of the complaint for forfeiture. GECC-TN filed an answer to the government’s complaint on January 30, 1978, which requested that the United States release the aircraft to GECC-TN in consideration of the terms of the security agreement between GECC-TN and the Golders.

On May 12, 1978, GECC-TN’s petition for remission and mitigation was granted. The United States Department of Justice consented to release the aircraft to GECC-TN on condition that bond be posted in substitution for the aircraft and GECC-TN enter into an indemnity agreement with the United States.5 The New York District [516] Court approved the bond on March 16, 1979, and the aircraft was released to GECC-TN.

On April 29, 1979, while the government forfeiture action was pending in the district court, GECC-TN sold the aircraft for $230,000.00. After applying the proceeds of the sale to the plaintiffs’ outstanding debt on the aircraft and related expenses, a deficiency remained in the amount of $28,-666.93. The Golders and GECC-TN agreed on a settlement whereby the plaintiffs would deposit $26,475.00 in escrow for the benefit of GECC-TN until final disposition of the forfeiture action. This settlement was approved by a “Stipulation and Order” in the United States District Court for the District of Arizona on January 30, 1981. General Electric Credit Corporation of Tennessee v. Lloyd W. Golder III and Vicki Cox Golder, No. CIV 79-099 TUC ACM (D.A.Z. Oct 12, 1981). The Arizona District Court subsequently approved an “Order Compelling Performance of Settlement Agreement” which confirmed the stipulated compromise, declaring its terms binding and enforceable upon the Golders and ordering the Golders to deposit the agreed sum of money into escrow.6

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Golder v. United States, 15 Cl. Ct. 513, 1988 U.S. Claims LEXIS 150, 1988 WL 96027 (cc 1988).

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