In re the Seizure of Four (4) DC-3 Aircraft

134 F.R.D. 251, 1991 U.S. Dist. LEXIS 2299, 1991 WL 23014
CourtDistrict Court, E.D. Wisconsin
DecidedFebruary 14, 1991
DocketNo. 90-104M
StatusPublished
Cited by5 cases

This text of 134 F.R.D. 251 (In re the Seizure of Four (4) DC-3 Aircraft) is published on Counsel Stack Legal Research, covering District Court, E.D. Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re the Seizure of Four (4) DC-3 Aircraft, 134 F.R.D. 251, 1991 U.S. Dist. LEXIS 2299, 1991 WL 23014 (E.D. Wis. 1991).

Opinion

DECISION AND ORDER

AARON E. GOODSTEIN, United States Magistrate Judge.

On July 30, 1990, a seizure warrant was issued by this court authorizing government agents to seize four DC-3 airplanes in the possession of Basler Aviation of Oshkosh, Wisconsin. The airplanes were seized, but pursuant to an arrangement between Basler Aviation and the government, they remained at Basler until September 20, 1990 when they were removed.

On October 19, 1990, a motion was filed pursuant to Rule 41(e) Fed.R.Crim.P. for the return of one of the seized aircraft (a Douglas Turbo DC-3 aircraft, registration no. N72BF). The movants are the “Basler” group (which consists of Basler Flight Services, Inc. and Basler Turbo Conversion, Inc.), Innovair Aviation, Ltd. and the Insurance Company of North America (“INA”).

According to the motion, Basler Turbo Conversion was the owner of the aircraft at the time it was seized and Innovair Aviation had performed certain modifications on the plane. Following removal of the aircraft, on October 2, 1990, INA purchased the plane in accordance with the provisions of an insurance policy. INA is now the owner of the aircraft and wants possession of its property.

Other contemporaneous events add an element of complexity to the situation. On [253]*253October 12, 1990, a superseding indictment was filed in federal court in Arizona (case no. 90-233-PHX-RCB) against Daniel Morales and eleven other defendants. This indictment contains a forfeiture provision seeking the forfeiture of the four airplanes seized from Basler, including the one in question. None of the present movants are named defendants in the Arizona indictment. Then, on November 29, 1990, the government commenced a civil forfeiture action in the Arizona district court (case no. 90-1827-PHX-RCB) seeking forfeiture of the subject aircraft and other property.

The indictment and the complaint in the civil forfeiture action sets forth the government’s allegations concerning the drug trafficking activities of the defendants and their connection to the subject aircraft. It is the government’s position that the airplanes were intended to be used to facilitate drug trafficking and are thus subject to forfeiture pursuant to 21 U.S.C. § 881(a)(4). According to the government, some of the defendants, through the use of entities known as Air North Aviation Corporation and Air Columbia, engaged Basler to make certain conversions and modifications to DC-3 airplanes. Payments were made with the proceeds of illegal drug activities. Neither the indictment nor the civil complaint alleges that Basler was aware of the intended illegal use of the planes it was modifying or of the illegal nature of the monies it received.

The issue, however, presently before this court does not concern guilt or innocence or whether the aircraft is subject to forfeiture. The issue involves the court’s jurisdiction to even entertain the motion for return of property. The government has filed a motion to dismiss claiming that the court is barred from considering the motion for several reasons. The government claims that the movants are precluded by 21 U.S.C. § 853(k)(2) from instituting any action affecting the seized property until after the criminal action has been completed. The government also claims that the appropriate venue to consider the movants’ claim is in the Arizona district court where the civil forfeiture action is pending.

In response, the movants contend that they are innocent parties who have been deprived of their property; as such, they have a right to petition the court for relief. They contend that since this court issued the warrant authorizing seizure, it is proper for this court to order the property returned. The movants submit that Rule 41(e), Fed.R.Crim.P. provides jurisdiction for this court to act. Rule 41(e) states, in part:

A person aggrieved by ... the deprivation of property may move the district court for the district in which the property was seized for the return of the property on the ground that such person is entitled to lawful possession of the property.

After considering the written submissions of the parties and argument of counsel at a hearing conducted on the government’s motion to dismiss, this court concludes that it has jurisdiction to entertain the motion. First, Rule 41(e) clearly establishes a procedure for a person aggrieved by a seizure to seek a return of property. The rule is not limited to just providing a forum to those who wish to contest the lawfulness of a search and seizure, but applies to those who claim they are entitled to lawful possession of the property of which they were deprived.

Second, the prohibition found in 21 U.S.C. § 853(k) is inapplicable to the present situation. That section prohibits any person from intervening in a criminal case involving forfeiture or commencing an action subsequent tb the filing of the indictment in the criminal case. The movants have done neither; they have not attempted to intervene in the criminal case in Arizona, but have only sought a return of their property from the court that authorized its seizure. They have commenced no independent action in law or equity, but have simply filed a motion for the return of property.

Parenthetically, if this motion could be construed as an action in equity and thus fall within the purview of § 853(k)’s prohib[254]*254ited acts, invocation of that section would raise serious due process concerns. It is a fundamental requirement of due process that a person must be given a meaningful opportunity to be heard before being deprived of property. To force the movants to await the conclusion of the criminal trial before the government is required to establish that the movants’ interest or rights to the property is either subject to forfeiture or subordinate to the government’s upon forfeiture would violate due process. See, United States v. Thier, 801 F.2d 1463, 1468, 1469 (5th Cir.1986), and United States v. Monsanto, 924 F.2d 1186 (2nd Cir.1991).

Finally, this Rule 41(e) motion was filed almost two months prior to the commencement of the civil forfeiture action. Therefore, it cannot be persuasively argued that the institution of forfeiture proceedings has pre-empted the movants’ ability to seek relief by way of Rule 41(e). In fact, the seizure was authorized under 21 U.S.C. § 881. Section 881(b)(4) provides that seizure warrants such as this may issue without process under the supplemental rules for admiralty and maritime claims as long as summary or judicial forfeiture proceedings are promptly instituted. As indicated above, to foreclose the movants from a reasonably prompt forum which would entertain their claim would be to deprive them of property without due process of law.

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Bluebook (online)
134 F.R.D. 251, 1991 U.S. Dist. LEXIS 2299, 1991 WL 23014, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-seizure-of-four-4-dc-3-aircraft-wied-1991.