In Re Property, Business, & Building Located at 2120 S. 4th Avenue, Lot 16, Block 8 of Resubdivision of Home Addition No. 2

870 P.2d 417, 177 Ariz. 599, 160 Ariz. Adv. Rep. 37, 1994 Ariz. App. LEXIS 37
CourtCourt of Appeals of Arizona
DecidedMarch 3, 1994
Docket2 CA-CV 93-0054
StatusPublished
Cited by5 cases

This text of 870 P.2d 417 (In Re Property, Business, & Building Located at 2120 S. 4th Avenue, Lot 16, Block 8 of Resubdivision of Home Addition No. 2) is published on Counsel Stack Legal Research, covering Court of Appeals of Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Property, Business, & Building Located at 2120 S. 4th Avenue, Lot 16, Block 8 of Resubdivision of Home Addition No. 2, 870 P.2d 417, 177 Ariz. 599, 160 Ariz. Adv. Rep. 37, 1994 Ariz. App. LEXIS 37 (Ark. Ct. App. 1994).

Opinion

OPINION

FERNANDEZ, Judge.

Appellants David and Gloria Loya, husband and wife, appeal from an order forfeiting their business, the building; and the real property on which the business is located to the state. David Loya pled guilty to conspiracy to offer to sell marijuana. The state filed a civil, in rem forfeiture action pursuant to A.R.S. §§ 13-2314, 13-3413, and 13-4301 through 13-4315, seeking forfeiture of the Loyas’ business, home, and vehicles. The Loyas filed a verified claim protesting forfeiture; the court denied forfeiture of the home *601 and vehicles. The Loyas contend that the forfeiture constitutes cruel and unusual punishment and double jeopardy. Gloria Loya also argues that the court erred in forfeiting her interest in the business. 1 We affirm.

David Loya met with undercover police officers and negotiated the sale of 100 pounds of marijuana at the price of $1,000 per pound. After the officers showed one of Loya’s co-conspirators $100,000 as payment for the marijuana, Loya directed that the officer be shown the marijuana, which totaled 112 pounds. Thereafter, the police executed a search warrant, made arrests, and seized the marijuana, as well as documentary evidence. The meetings, negotiations, delivery of payment, and storage, inspection, and delivery of the marijuana all occurred on the business premises.

Gloria Loya did not testify at the forfeiture hearing. David Loya was called as a witness by the state. On direct examination, he testified that he was the sole owner of the business, that his wife never helped or had any input into the operation of the business, and that only he and his brother were authorized signers on the business bank account. On cross-examination by his own attorney, David testified that Gloria had an interest in the business and that she was married to him at the time the business property was purchased in 1986. Gloria Loya produced no evidence of what she knew or could reasonably have known of the conduct giving rise to the forfeiture. Appellants only called one witness, their financial expert.

FORFEITURE OF WIFE’S INTEREST IN BUSINESS

David Loya concedes that his interest in the business property was properly forfeited; however, Gloria Loya argues that forfeiture of her interest was erroneous because she is an innocent owner. We disagree.

The state may commence a forfeiture action to forfeit all property used or intended for use in drug or narcotics violations. AR.S. §§ 13—2314(F) (3), 13-3413(A)(1), 13^4301 through 13-4315; In re One 1983 Toyota Silver Four-Door Sedan, 168 Ariz. 399, 814 P.2d 356 (App.1991). Gloria argues that A.R.S. § 13-2314(B) is inconsistent with A.R.S. §§ 13-4301(3) and 13-4304(3) and that because they are criminal statutes, they “must be strictly construed, and any ambiguity must be resolved in favor of lenity.” United States v. Enmons, 410 U.S. 396, 411, 93 S.Ct. 1007, 1015, 35 L.Ed.2d 379, 389 (1973). For purposes of construing a statute, we must determine and give effect to the legislative intent. AR.S. § 13-104. In doing so, we will consider the words, context, subject matter, effects and consequences, spirit and reason of the law, and other acts in pari materia. State v. McGriff, 7 Ariz.App. 498, 441 P.2d 264 (1968). On review, we will construe provisions to harmonize rather than contradict one another “if sound reason and good conscience allow.” City of Mesa v. Salt River Project Agricultural Improvement & Power District, 92 Ariz. 91, 98, 373 P.2d 722, 727 (1962).

AR.S. § 13-2314(B) states in pertinent part;

The Superior Court has jurisdiction to prevent, restrain, and remedy racketeering as defined by § 13-2301, subsection D, paragraph 4 or a violation of § 13-2312 after making provision for the rights of all innocent persons affected by such violation and after hearing or trial, as appropriate, by issuing appropriate orders.

The statute, which was derived from 18 U.S.C. § 1964, lists a variety of remedies for racketeering in Arizona, most of which are civil in nature. 1 Rudolph J. Gerber, Crimi- ■ nal Law of Arizona, 2314-4 (2d ed. 1993). Gloria agrees that AR.S. § 13-2314 empowers the court to fashion orders to remedy racketeering, taking into account the rights of innocent persons. She contends, however, that it is inconsistent to give the court such authority and then effectively cancel it in AR.S. § 13-4304(3)(b) if the innocent person is the spouse of an owner or interest holder.

With the increased filing of forfeiture actions resulting from criminal cases, the legis *602 lature created a new chapter in 1986 with statutes specifically related to forfeitures. A.R.S. Title 13, Chapter 39. 2 Gerber, supra, 4304-1. A.R.S. § 13-4301 defines the terms used in Chapter 39. A.R.S. § 13-4301(3) states:

“Owner” means a person who is not a secured party within the meaning of § 47-9105 and who has an interest in property, whether legal or equitable____ An owner with power to convey property binds other owners, and a spouse binds his spouse, by his act or omission.

A.R.S. § 13-4304(3) specifically defines property subject to or exempt from forfeiture:

No owner’s or interest holder’s interest may be forfeited under this chapter if the owner or interest holder establishes all of the following:
(a) He acquired the interest before or during the conduct giving rise to forfeiture.
(b) He did not empower any person whose act or omission gives rise to forfeiture with legal or equitable power to convey the interest, as to a bona fide purchaser for value, and he was not married to any such person or if married to such person, held the property as separate property.
(c) He did not know and could not reasonably have known of the act or omission or that it was likely to occur.

(Emphasis added.)

There is no definition of who may be considered an “innocent” owner or interest holder.

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

Related

Zavala, John
Court of Appeals of Texas, 2015
In Re One Residence at 319 E. Fairgrounds Dr.
71 P.3d 930 (Court of Appeals of Arizona, 2003)
State v. Miranda-Beltran
927 P.2d 802 (Court of Appeals of Arizona, 1996)
State v. Leyva
909 P.2d 506 (Court of Appeals of Arizona, 1995)

Cite This Page — Counsel Stack

Bluebook (online)
870 P.2d 417, 177 Ariz. 599, 160 Ariz. Adv. Rep. 37, 1994 Ariz. App. LEXIS 37, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-property-business-building-located-at-2120-s-4th-avenue-lot-16-arizctapp-1994.