United States v. $106,647 in U.S. Currency

93 F. Supp. 3d 419, 2015 U.S. Dist. LEXIS 143680
CourtDistrict Court, D. Maryland
DecidedFebruary 23, 2015
DocketCivil Action No. RDB-13-2433
StatusPublished

This text of 93 F. Supp. 3d 419 (United States v. $106,647 in U.S. Currency) is published on Counsel Stack Legal Research, covering District Court, D. Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. $106,647 in U.S. Currency, 93 F. Supp. 3d 419, 2015 U.S. Dist. LEXIS 143680 (D. Md. 2015).

Opinion

MEMORANDUM ORDER

RICHARD D. BENNETT, District Judge.

This civil forfeiture action was initially filed by the United States'(“Plaintiff’ or “the Government”) in the aftermath of the unsuccessful state prosecution of Claimant Adolfo Lucas (“Claimant” or “Lucas”). Under the auspices of the Controlled Substances Act, the Government asks that the $106,647 in U.S. Currency at issue be forfeited and condemned to the United States of America. 21 U.S.C. § 881(a)(6). This Court previously entered a Memorandum Opinion (ECF No. 12) and Order (ECF No. 13) awarding summary judgment to Claimant Lucas and against Plaintiff United States. The Government filed the pending Motion to Alter Judgment, or, in the Alternative, to Stay the Judgment Pending Appeal (“Motion to Alter Judgment”) (ECF No. 14), arguing that this Court’s Judgment contradicts clear controlling authority from the United States Court of Appeals for the Fourth Circuit.

The pending Motion was fully briefed by both parties and no hearing is necessary under Local Rule 105.6 (D.Md.2014). For the reasons that follow, Defendant’s Motion to Alter Judgment, or, in the Alternative, to Stay the Judgment Pending Appeal (ECF No. 14) is GRANTED.

BACKGROUND

The background facts of this action were fully set forth in this Court’s Memorandum Opinion of August 26, 2014 (ECF No. 12). To summarize, police effected a traffic stop of a vehicle driven by the Claimant Lucas on February 1, 2013. Officers found 105 grams of crack cocaine, $4500 in cash, cutting agents, paraphernalia, and packaging materials associated with drug distribution in Lucas’s possession. Later the same day, police obtained a search warrant [421]*421for Lucas’s residence and found $102,107 in cash and a loaded handgun there.

Lucas was indicted on narcotics and firearms offenses in the Circuit Court for Baltimore City. He filed a motion to suppress all evidence seized from the vehicle and the residence. A hearing was held and Judge Barry Williams of the Circuit Court for Baltimore City granted Lucas’s motion to suppress, ruling that all the-items were seized in violation of the Fourth Amendment to the United States Constitution. The State entered a nolle prosequi on all charges and took no steps to forfeit the seized currency. The State forwarded the currency to the Drug Enforcement Administration.

The Government filed a Verified Complaint for Forfeiture (ECF' No. 1) and Lucas made a claim as to the $106,647.00 (ECF No. 4).1 In an Amended Claim of Ownership, the Claimant asserts that all but $720.00 of the $106,647.00 belongs to him, and was obtained by lawful means.2 Therefore, he claims ownership of $105,927.00. The Claimant then filed a Motion for Summary Judgment (ECF No. 9), which this Court subsequently granted. See Mem. Op., ECF No. 12; Order, ECF No. 13. In granting the Claimant’s Motion for Summary Judgment, this Court held that the issue of the validity of the seizure was fully and fairly litigated in state court. The state court’s determination thereby barred the Government from re-litigating this issue under the principles of collateral estoppel. As the Government offered no additional evidence to support forfeiture, this Court entered judgment as a matter of law in favor of the Claimant. The Government was subsequently ordered to release $105,927.00. Id.

STANDARD OF REVIEW

Plaintiff United States moves to alter this Court’s judgment under Rule 59 of Federal Rules of Civil Procedure. Rule 59(e) authorizes a district court to alter, amend, or vacate a prior judgment if the relevant motion is filed within twenty-eight days of the offending judgment. Fed. R.Civ.P. 59(e). In this case, the Government timely filed its Motion to Alter Judgment.

The United States Court of Appeals for the Fourth Circuit has repeatedly recognized that a final3 judgment may be amended under Rule 59(e) in only three circumstances: (1) to accommodate an intervening change in controlling law; (2) to account for new evidence not available at trial; or (3) to correct a clear error of law or prevent manifest injustice. See, e.g., Gagliano v. Reliance Standard Life Ins. Co., 547 F.3d 230, 241 n. 8 (4th Cir.2008). Moreover, “[t]he district court has considerable discretion in deciding whether to modify or amend a judgment.” Id. Such motions do not authorize a “game of hopscotch,” in which parties switch from one legal theory to another “like a bee in search of honey.” Cochran v. Quest Software, Inc., 328 F.3d 1, 11 (1st Cir.2003). In other words, a Rule 59(e) motion “may not be used to relitigate old matters, or to raise arguments or present evidence that could have been raised prior to entry of judgment.” Pac. Ins. Co. v. Am. Nat’l Fire Ins. Co., 148 F.3d 396, 403 (4th Cir.1998) (quoting 11 Wright, et al, Federal [422]*422Practice and Procedure § 2810.1, at 127-28 (2d ed.1995)).

Where a party presents newly discovered evidence in support of its Rule 59(e) motion, it “must produce a legitimate justification for not presenting the evidence during the earlier proceeding.” Id. (internal citations and quotation marks omitted). Where a party seeks reconsideration on the basis of manifest error, the earlier decision cannot be “ ‘just maybe or probably wrong; it must ... strike us as wrong with the force of a five-week old, unrefrigerated dead fish.’ ” TFWS, Inc. v. Franchot; 572 F.3d 186, 194 (4th Cir.2009) (quoting BellSouth Telesensor v. Info. Sys. & Networks Corp., Nos. 92-2355, 92-2437, 1995 WL 520978 at *5 n. 6 (4th Cir. Sept. 5,1995)). “In general, reconsideration of a judgment after its entry is an extraordinary remedy which should be used sparingly.” Id. (internal citations and quotation marks omitted).

ANALYSIS

In moving to alter or amend this Court’s judgment pursuant to Rule 59(e), the Government contends that the application of collateral estoppel to the seizure of the $106,647 constituted a clear error of law. Specifically, the Government argues that this Court erred in concluding that identity of the parties existed because the state and federal governments are in privity. Without this identity of the parties, collateral estoppel is thus necessarily inapplicable. After reviewing the controlling precedent of the United States Court of Appeals for the Fourth Circuit, this Court agrees.

Generally, collateral estoppel is applied to prevent re-litigation of fully determined issues in a second legal proceeding. See Allen v. McCurry, 449 U.S. 90, 94, 101 S.Ct. 411, 66 L.Ed.2d 308 (1980).

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Related

Allen v. McCurry
449 U.S. 90 (Supreme Court, 1980)
Cochran v. Quest Software, Inc.
328 F.3d 1 (First Circuit, 2003)
United States v. William Edward Brown
604 F.2d 557 (Eighth Circuit, 1979)
United States v. Mahmoud Safari
849 F.2d 891 (Fourth Circuit, 1988)
Gagliano v. Reliance Standard Life Insurance
547 F.3d 230 (Fourth Circuit, 2008)
TFWS, Inc. v. Franchot
572 F.3d 186 (Fourth Circuit, 2009)
Cassidy v. Board of Education
557 A.2d 227 (Court of Appeals of Maryland, 1989)
Mathews v. Cassidy Turley Maryland, Inc.
80 A.3d 269 (Court of Appeals of Maryland, 2013)

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Bluebook (online)
93 F. Supp. 3d 419, 2015 U.S. Dist. LEXIS 143680, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-106647-in-us-currency-mdd-2015.