Ronald J. Smith v. United States

76 F.3d 879, 1996 WL 72858
CourtCourt of Appeals for the Seventh Circuit
DecidedApril 3, 1996
Docket95-2259
StatusPublished
Cited by22 cases

This text of 76 F.3d 879 (Ronald J. Smith v. United States) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ronald J. Smith v. United States, 76 F.3d 879, 1996 WL 72858 (7th Cir. 1996).

Opinions

TERENCE T. EVANS, Circuit Judge.

With the money he made selling drugs, Ronald J. Smith bought a Jeep Cherokee and real property in Steamboat Springs, Colorado. He also had cash on hand of $165,550. Smith’s life took a turn for the worse, though, when the Jeep, the property, and the money were forfeited to the government and, after his conviction for conspiracy to distribute more than 1,000 pounds of marijuana, he was sentenced to 28 years in prison. Smith’s 1991 conviction and sentence (on January 10 and June 4, respectively) were affirmed by this court in United States v. Smith, 995 F.2d 662 (7th Cir.1993).

In 1995, Smith brought this proceeding under 28 U.S.C. § 2255, claiming that prior judgments of forfeiture growing out of his marijuana trafficking constituted a jeopardy and that his subsequent conviction was therefore a violation of the Double Jeopardy Clause of the United States Constitution. The district court rejected the claim and Smith appeals.

Smith’s Jeep was seized at the time of his arrest. The vehicle was administratively forfeited to the government. Somewhat later, the currency was seized and administratively forfeited. Smith did not file claims in the administrative proceedings.

Judicial forfeiture proceedings were filed as to the real property in Colorado. Originally the complaint was filed in the Southern District of Illinois, but it was dismissed there because venue was improper. The complaint was then filed in the District of Colorado in June 1991, where it was compromised by the government and Smith’s wife. An amended final order of forfeiture was entered on February 26, 1992. Claiming an interest in the property, Smith filed a motion to dismiss the proceeding in Illinois. He did not, however, file a claim on the property in the Colorado action.

It is undisputed that all three forfeitures were based on 21 U.S.C. § 881(a)(6) as proceeds traceable to drug dealing. Smith now argues, on the basis of Austin v. United States, 509 U.S. 602, 113 S.Ct. 2801, 125 L.Ed.2d 488 (1993), and Department of Revenue of Montana v. Kurth Ranch, — U.S. -, 114 S.Ct. 1937, 128 L.Ed.2d 767 (1994), that the forfeitures were punishments and therefore he was twice put in jeopardy. He hopes to ride this contention out of prison.

There are several things wrong with Smith’s argument, not the least of which is that he raised it for the first time in a collateral proceeding. For that reason, the government argues alternative theories by which Smith is barred from relief in this § 2255 proceeding. The first is that the doctrine of Teague v. Lane, 489 U.S. 288, 109 S.Ct. 1060, 103 L.Ed.2d 334 (1989), bars his petition. That is, if his claim is based on a new constitutional rule established after his [881]*881conviction became final, the conviction is immune from constitutional attack.

Teague does not help the government in this case. The constitutional rule from which Smith derives his claim has been evolving at least since United States v. Halper, 490 U.S. 435, 109 S.Ct. 1892, 104 L.Ed.2d 487 (1989). Halper was decided before Smith was indicted. On the other hand, as we will soon discuss, the parameters on the doctrine are still far from settled. Suffice to say that we do not find that Teague bars Smith’s claim.

That said, the government’s alternative argument comes into play: that is, that Smith failed to raise the argument on direct appeal and can only pursue it in this § 2255 proceeding if he can show cause for the failure to raise the issue sooner and actual prejudice resulting from the errors of which he complains. United States v. Frady, 456 U.S. 152, 102 S.Ct. 1584, 71 L.Ed.2d 816 (1982).

The primary problem Smith faces is that he cannot show prejudice from the failure to raise the argument. There are a number of reasons why the argument would fail and the results for Smith would be unchanged. Therefore, there is no prejudice to which he can now cling.

One reason is that although he attempts to provide excuses for his failure to do so, the fact remains that he did not file a claim in the administrative proceedings, which pushes him head first into our decision in United States v. Torres, 28 F.3d 1463 (7th Cir.1994). Secondly, there is a problem with the timing of one of the forfeitures: the Colorado real estate was forfeited after Smith’s conviction, not before.

The issue which keeps Smith from showing prejudice as to all three, however, grows out of the fact that what was forfeited was the fruit of drug dealing, property which Smith had no right to acquire in the first place. The issue is whether the forfeiture of items found to be proceeds traceable to drug dealing can be considered punitive and thus constitute jeopardy.

The Double Jeopardy Clause prohibits more than one “punishment” for the same offense. North Carolina v. Pearce, 395 U.S. 711, 89 S.Ct. 2072, 23 L.Ed.2d 656 (1969), overruled on other grounds, Alabama v. Smith, 490 U.S. 794, 109 S.Ct. 2201, 104 L.Ed.2d 865 (1989). A criminal proceeding clearly subjects a defendant to punishment. What we now know after Halper, Austin, and Kurth Ranch is that a civil proceeding may, under certain limited circumstances, also constitute punishment under either the Double Jeopardy Clause or the Excessive Fines Clause of the Constitution.

Halper involved a defendant whose crimes, taken together, netted him $585. In a subsequent civil proceeding, the government sought a penalty of $130,000. In determining whether the civil penalty was barred by the Double Jeopardy Clause, the Court found that the fact that the second proceeding was civil, not criminal, was not controlling. Because the civil “penalty” was so far out of line with the government’s loss, it served a punitive rather than a remedial purpose, and was therefore barred by the Double Jeopardy Clause. The issue was said to involve a type of “rough remedial justice.” The concern was directed to situations where “rough justice becomes clear injustice.” Halper, 490 U.S. 435, 446, 109 S.Ct. 1892, 1901.

Then in Austin, the issue was whether the Excessive Fines Clause of the Eighth Amendment applies to forfeitures under 21 U.S.C. § 881(a)(4) and (a)(7). Under § 881(a)(4), things like airplanes and automobiles are forfeitable if used to facilitate the transportation of controlled substances, their raw materials, or equipment used to manufacture or distribute them.

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Bluebook (online)
76 F.3d 879, 1996 WL 72858, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ronald-j-smith-v-united-states-ca7-1996.