Hernandez v. United States

86 F. Supp. 2d 331, 2000 U.S. Dist. LEXIS 1869, 2000 WL 218396
CourtDistrict Court, S.D. New York
DecidedFebruary 22, 2000
Docket99 CIV 4303 (SAS)
StatusPublished

This text of 86 F. Supp. 2d 331 (Hernandez v. United States) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hernandez v. United States, 86 F. Supp. 2d 331, 2000 U.S. Dist. LEXIS 1869, 2000 WL 218396 (S.D.N.Y. 2000).

Opinion

OPINION AND ORDER

SCHEINDLIN, District Judge.

This opinion represents the final stop on a twisted journey through the netherworld of administrative forfeiture. In 1992, the Drug Enforcement Administration (“DEA”) seized plaintiff Felix Hernandez’s car in connection with his arrest on federal narcotics charges. Three years later, the DEA and United States Attorney’s Office notified Hernandez that they were declining to prosecute a judicial forfeiture proceeding and were returning the car to him. The twist is that, during those three years, the DEA added the car to its fleet and drove it more than 10,000 miles.

Hernandez’s wife finally retrieved the car in 1997, but Hernandez, proceeding pro se, now seeks damages for the government’s unauthorized use of, unauthorized retention of, and physical damage to the car. Although the government has agreed to pay for the physical damage and to compensate Hernandez for its unauthorized use of his car, the parties dispute the proper method for determining that compensation, as well as whether the government is liable for damages stemming from its retention of Hernandez’s car. In addition, Hernandez seeks interest on the cost bond that he had to post in order to file a claim.

Both parties have filed motions for summary judgment. For the reasons set forth below, summary judgment is granted in favor of Hernandez, who is awarded $742.62 for the government’s unauthorized use of and physical damage to his car, as well interest on the overstated value of the cost bond. Hernandez is awarded no damages for the retention of his car. 1

I. BACKGROUND

A. Facts

Felix Hernandez’s Toyota Camry sedan 4D Model No. V24E (the “car”) was seized *333 in connection with his August 1992 arrest on federal narcotics charges. See Amended Declaration of Steve Kaufman, Senior Attorney with the DEA (“Am. Kaufman Decl.”) at ¶ 6 (attached as Exhibit A to the Declaration of Assistant U.S. Attorney Meredith E. Kotler, dated January 24, 2000 (“Second Kotler Decl.”)). On September 8, 1992, the DEA commenced administrative forfeiture proceedings against the car, published notice of the seizure in USA Today, and sent notice of the forfeiture proceedings to Hernandez. See id. at ¶¶ 8-10. The notice advised Hernandez that if he wished to contest the forfeiture, he must file a claim and post a bond in the amount of ten percent of the DEA’s valuation of the car at the time it was seized. 2 See id. at ¶ 10. On October 23, 1992, having received no timely claim or cost bond, the DEA administratively forfeited the car to the United States, and added the car to the government fleet. See id. at ¶¶ 12-13; see also 19 U.S.C. § 1609 (permitting summary forfeiture in the absence of a timely claim); 21 U.S.C. § 881(e) (describing options for disposition of forfeited property); 21 C.F.R. § 1316.77(a) (forfeited property may be retained for official use).

In July 1993, the DEA discovered that the 1992 notice of forfeiture was défective in that both the Vehicle Identification Number (“VIN”) and model year were incorrect. See Am. Kaufman Decl. at ¶ 14. As a result, the DEA rescinded the forfeiture and removed the Camry from the government fleet. See id. at ¶¶ 14-16. The government added 10,298 miles to the car. See id. at ¶ 15. 3

Oh August 18, 1993, the. DEA recommenced forfeiture proceedings against the car and again published and sent notice to Hernandez. See id. at ¶¶ 16-17. Having failed to receive a timely claim, the DEA forfeited the car again on October 1, 1993. See id. at ¶ 19. Three days later, however, a claim and bond were filed by Trevor Reid, Esq. on behalf of Hernandez. See id. at ¶ 20. As a result, on October 12, 1993, the forfeiture was rescinded. See id. at ¶ 22.

The matter then was referred to the United States Attorney’s Office for initiation of judicial forfeiture proceedings. See id. at ¶ 21. By letter dated October 26, 1995, the United States Attorney advised Hernandez that prosecution of the judicial forfeiture proceeding had been declined, and the car could be retrieved. See id. at ¶ 24. For the next year Hernandez and the DEA disputed the issue of storage charges. See id. at ¶¶ 24-25. On October 1, 1996, the DEA agreed that it would waive storage charges and that Hernandez could reclaim the car. Id. at ¶ 26. Hernandez refused to accept the car unless the DEA agreed to reimburse him for its loss in value. See id. at ¶ 27. Finally, having received notice that the car would be considered abandoned, Hernandez’ wife retrieved the car in July 1997. See id. at ¶ 29.

B. Procedural History

In late 1996, Hernandez filed a Petition, pursuant to Rule 41(e) of the Federal Rules of Criminal Procedure, seeking the return of his car and damages. See Complaint, Claim for Property Damage(s) in the-Amount of $19,650.00 Pursuant to the Federal Tort Claim Act (“FTCA”) 28 USC § 1346 (“Complaint”) at 2 (explaining that Hernandez initially filed a “Petition for Return of Property in the full and fair market value pursuant to Civil Equitable Proceeding or Rule 41(e) of Federal Rules of Criminal Procedure”); see also Hernandez v. United States Drug Enforcement Administration, No. 97 Civ. 0429(SAS). By Stipulation and Order dated August 11, 1997, the motion was dismissed without prejudice to allow Hernandez to pursue his *334 administrative remedies. See Complaint at 2.

On August 27, 1997, Hernandez filed a Standard Form 95, Claim for Damage, Injury, or Death seeking $19,650 for property damage. See id. at 3. Specifically, Hernandez sought (1) $14,300 for loss in the property value of his car; (2) $350 for damage to the side mirror; and (3) $5,000 for “Hardship as a result of the Unconstitutional use of property.” See Declaration of Steve Kaufman, Senior Attorney with the DEA, dated November 24, 1999 (“Kaufman Decl.”) at ¶ 12 (attached as Exhibit A to the Declaration of Assistant U.S. Attorney Meredith E. Kotler, dated November 24, 1999 (“First Kotler Decl.”)). By letter dated June 4, 1998, the DEA offered Hernandez $1,075 in full and final settlement of his claim. See Am. Kaufman Decl. at ¶ 31. Hernandez rejected this offer. See id. at ¶ 38.

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Bluebook (online)
86 F. Supp. 2d 331, 2000 U.S. Dist. LEXIS 1869, 2000 WL 218396, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hernandez-v-united-states-nysd-2000.