Gutt v. United States

641 F. Supp. 603, 1986 U.S. Dist. LEXIS 21645
CourtDistrict Court, W.D. Virginia
DecidedAugust 12, 1986
DocketCiv. A. 85-1088(R)
StatusPublished
Cited by17 cases

This text of 641 F. Supp. 603 (Gutt v. United States) is published on Counsel Stack Legal Research, covering District Court, W.D. Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gutt v. United States, 641 F. Supp. 603, 1986 U.S. Dist. LEXIS 21645 (W.D. Va. 1986).

Opinion

*604 . MEMORANDUM OPINION

TURK, Chief Judge.

Plaintiff Rafael Gutt filed this action challenging the seizure and administrative forfeiture of six Mercedes-Benz automobiles seized by the United States Drug Enforcement Administration (“DEA”). Currently before the court are the defendant’s motion to dismiss and the plaintiff’s motion for summary judgment. For the reasons set forth below, the plaintiff’s motion for summary judgment will be granted in part, and defendant’s motion will be denied.

BACKGROUND

On June 14, 1985, Gutt was staying at the Patrick Henry Hotel in Roanoke, Virginia when six Mercedes-Benz automobiles he allegedly owned were seized by agents of DEA. The six automobiles were valued at approximately $135,000.00. While Gutt was not the registered owner of the automobiles, at the time of the seizure he indicated to the DEA agents that he had an ownership interest in the vehicles. Following the seizure, Gutt retained counsel to represent him in any forfeiture proceedings instituted by DEA, and returned to Israel, where he is a citizen.

On July 5, 1985, counsel for Gutt filed a claim with DEA for the return of the seized autos. A letter sent with the claim requested that all notices and correspondence regarding the vehicles be sent to counsel in Roanoke.

On August 7, 1985, DEA sent a letter informing Gutt of the proposed forfeiture of the vehicles by certified mail, return receipt requested, to Gutt at the Patrick Henry Hotel. DEA claims that it did so because Gutt indicated to the agents seizing the vehicles that he could be reached at the Patrick Henry. 1 The letter was returned to DEA undelivered on August 23, 1985. Because of bureaucratic mixups at DEA, no notice of the proposed forfeiture was sent to Gutt’s counsel.

In late August and early September, 1985, DEA’s records indicate that a proposed forfeiture of vehicles “seized from Robert Tele” 2 was advertised in the main Roanoke newspaper. The notice advised that parties wishing to contest the forfeiture should file a claim with DEA before September 17, 1985. No claims were filed in response to the notice, and on October 16, 1985, DEA declared the six Mercedes forfeited.

On October 17, 1985, Gutt’s counsel, still unaware that forfeiture proceedings had ever been initiated, wrote DEA and forwarded documents supporting Gutt’s claim that the vehicles should not be forfeited. Gutt’s counsel forwarded additional information to DEA on October 23. At no time prior to this had DEA responded to counsel regarding the proposed forfeiture.

By a series of letters dated November 8, 1985, DEA sent its first response to Gutt’s counsel. The letters were all form letters denying Gutt’s petitions for remission or mitigation of the seized property. Dissatisfied with DEA’s explanation of its denial of the petition, Gutt’s counsel requested further explanation and reconsideration of DEA’s decision. DEA declined, and this suit followed.

THE PRESENT CONTROVERSY

Gutt contends that DEA improperly forfeited the six automobiles, and seeks to vacate the forfeiture and recover the vehicles or their value, plus damages. 3 Gutt offers two primary theories to support his contention. 4 First, Gutt asserts that since *605 the automobiles in question were worth over $100,000.00, it was improper for DEA to administratively forfeit the vehicles. Second, Gutt asserts that even if administrative forfeiture of the vehicles was permissible, DEA’s failure to notify him of the forfeiture proceedings denied Gutt his rights under 19 U.S.C. § 1607 and the Fifth Amendment’s Due Process Clause. The court will consider these assertions in turn.

A. WAS JUDICIAL FORFEITURE REQUIRED?

Gutt initially asserts that DEA was required to forfeit the automobiles judicially rather than in administrative proceedings. The court disagrees.

19 U.S.C. § 1607(a)(1) provides for administrative forfeiture of seized property “if the value of such seized vessel, vehicle, aircraft, merchandise or baggage does not exceed $100,000.” Gutt notes that the total value of the six vehicles seized from him was approximately $135,000, and that the vehicles were all seized at the same time. Under these circumstances, Gutt contends, the vehicles could not be forfeited administratively under § 1607(a)(1). Thus, Gutt would have required DEA to forfeit the vehicles judicially, under 19 U.S.C. § 1610.

Gutt’s argument, however, is inconsistent with the express language of § 1607(a)(1). The statute explicitly refers to the value of individual vessels, vehicles and aircraft, not to the collective value of a group of seized vessels, vehicles or aircraft. Only “merchandise” and “baggage,” as those terms are commonly used, could be read to refer to collective, rather than individual unit, values. Therefore, when numerous automobiles are seized from a private individual by the government at one time, § 1607(a)(1) does not require the government to aggregate the value of all the seized property to determine whether judicial forfeiture is required.

Interpreted in this way, § 1607(a)(1) appropriately places the emphasis in distinguishing judicial and administrative forfeitures on the value of the piece of property seized, rather than on the circumstances of seizure. Gutt’s argument that the vehicles’ values must be aggregated because all six autos were seized simultaneously relies entirely on the circumstances of the seizure, which are unimportant to § 1607.

This interpretation of § 1607 is also consistent with the legislative history of the recent amendments to § 1607. Prior to 1984, administrative forfeiture was only permitted in cases where the value of property seized was less than $10,000. In October 1984; however, Congress amended § 1607 to read as it now stands. The purpose of this and related amendments was to enhance the use of forfeiture as a law enforcement tool, see S.Rep. No. 98-225, 98th Cong., 2d Sess. 191, 217-18, reprinted in 1984 U.S. Code Cong. & Ad. News 3182 at 3374, 3400-401, and to “expand the availability of efficient administrative forfeiture proceedings.” Id. at 198, reprinted in 1984 U.S. Code Cong. & Ad. News at 3381. Were this court to adopt Gutt’s argument and require the government to judicially forfeit simultaneously seized vehicles when their aggregate value exceeds $100,000, it would restrict rather than enhance the use of the administrative forfeiture mechanism. In the face of Congress’ express intent to increase the use of administrative forfeiture, the court is unable to construe § 1607 as Gutt desires.

B. WAS THE ADMINISTRATIVE FORFEITURE PROPERLY CONDUCTED?

Free access — add to your briefcase to read the full text and ask questions with AI

Related

United States v. $57,960.00 in United States Currency
58 F. Supp. 2d 660 (D. South Carolina, 1999)
Vance v. United States
965 F. Supp. 944 (E.D. Michigan, 1997)
United States v. 51 Pieces of Real Property
17 F.3d 1306 (Tenth Circuit, 1994)
United States v. Norman Ray Woodall
12 F.3d 791 (Eighth Circuit, 1993)
Taft v. United States
824 F. Supp. 455 (D. Vermont, 1993)
Montgomery v. Scott
802 F. Supp. 930 (W.D. New York, 1992)
United States v. $80,760.00 in U.S. Currency
781 F. Supp. 462 (N.D. Texas, 1991)
Rosalyn Denise Chavis v. United States
935 F.2d 267 (Fourth Circuit, 1991)
Ramirez v. United States
767 F. Supp. 1563 (M.D. Florida, 1991)
Sarit v. Drug Enforcement Administration
759 F. Supp. 63 (D. Rhode Island, 1991)
Froudi v. United States
22 Cl. Ct. 290 (Court of Claims, 1991)
Nos. 87-3856, 87-3873
889 F.2d 1317 (Fourth Circuit, 1989)
United States v. Walker
889 F.2d 1317 (Fourth Circuit, 1989)

Cite This Page — Counsel Stack

Bluebook (online)
641 F. Supp. 603, 1986 U.S. Dist. LEXIS 21645, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gutt-v-united-states-vawd-1986.