United States v. $133,420.00 in United States Currency

672 F.3d 629, 2012 WL 555987, 2012 U.S. App. LEXIS 3388
CourtCourt of Appeals for the Ninth Circuit
DecidedFebruary 21, 2012
Docket10-16727
StatusPublished
Cited by107 cases

This text of 672 F.3d 629 (United States v. $133,420.00 in United States Currency) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. $133,420.00 in United States Currency, 672 F.3d 629, 2012 WL 555987, 2012 U.S. App. LEXIS 3388 (9th Cir. 2012).

Opinion

OPINION

IKUTA, Circuit Judge:

This appeal arises in the context of a civil forfeiture action instituted by the government after it seized $133,420 found in Damon Louis’s car. Louis asserts that the district court erred in granting summary judgment to the government after determining that Louis lacked standing. Because the district court did not err in striking Louis’s interrogatory response claiming ownership of the property, and because the remaining evidence was inadequate to establish that Louis had standing, we affirm.

I

This appeal arises in the context of a civil forfeiture action. Such actions are governed by statute, the Supplemental Rules for Admiralty or Maritime Claims and Asset Forfeiture Actions, and the Federal Rules of Civil Procedure. We begin by briefly describing the applicable statutory and procedural provisions.

Under 21 U.S.C. § 881(a), certain property is “subject to forfeiture to the United States.” Relevant here, § 881(a)(6) provides that “moneys ... furnished or intended to be furnished by any person in exchange for a controlled substance” and “all proceeds traceable to such an exchange” are subject to forfeiture. Once such property has been seized, it is “deemed to be in the custody of the Attorney General.” 21 U.S.C. § 881(e). The Attorney General may then seek either criminal forfeiture, see 18 U.S.C. § 982, or (as in this case) civil forfeiture, see id. § 983.

The government begins a judicial civil forfeiture action by filing an in rem complaint against the property (sometimes referred to as the “defendant property”) in the appropriate district court. Id. § 983(a)(3)(A); see also 28 U.S.C. § 1395. The complaint must be verified, state the grounds for jurisdiction, describe the property and its location, identify the statute under which forfeiture is sought, and state facts sufficient to “support a reasonable *635 belief that the government -will be able to meet its burden at trial.” Supp. R. G(2)(f); see also 18 U.S.C. § 983(a)(3)(A).

Any person wishing to intervene and assert an interest in the property must file two responsive pleadings: a verified claim and an answer. 18 U.S.C. § 983(a)(4)(A), (B); Supp. R. G(5). The verified claim must (1) “identify the specific property claimed,” (2) “identify the claimant and state the claimant’s interest in the property,” (3) “be signed by the claimant under penalty of perjury,” and (4) be served on the government’s attorney. Supp. R. G(5)(a)(i). In the answer, the claim ant may admit or deny the allegations in the complaint and set forth defenses.

Unlike in typical civil proceedings, the government may commence limited discovery immediately after a verified claim is filed. Supplemental Rule G(6)(a) provides that “[t]he government may serve special interrogatories limited to the claimant’s identity and relationship to the defendant property without the court’s leave at any time after the claim is filed and before discovery is closed.” 1 The purpose of the rule is “to permit the government to file limited interrogatories at any time after the claim is filed to gather information that bears on the claimant’s standing.” Supp. R. G advisory committee’s note (subdivision (6)). The claimant must respond to these special interrogatories within 21 days. Supp. R. G(6)(b). The general civil discovery rules of the Federal Rules of Civil Procedure otherwise apply. Supp. R. G(l).

At any time before trial, the government may move to strike the claimant’s claim or answer on the grounds that the claim or answer does not comply with Supplemental Rule G(5), that the claimant has not responded to special interrogatories propounded pursuant to Rule G(6)(a), or that the claimant lacks standing. Supp. R. G(8)(c). 2 The motion to strike may be presented as a motion for summary judgment. Supp. R. G(8)(c)(ii)(B). The court must decide the motion to strike before reaching a claimant’s motion to dismiss. Supp. R. G(8)(c)(ii)(A).

If the case proceeds to trial, “the burden of proof is on the Government to establish, by a preponderance of the evidence, that the property is subject to forfeiture.” 18 U.S.C. § 983(c)(1).

II

We now turn to the facts of this case. On January 6, 2009, Arizona Department of Public Safety Officer Mace Craft stopped Louis on Interstate 40 for failure to use his turn signal. In response to questioning, Louis told Officer Craft that he was driving back to San Francisco from *636 Albuquerque after attending a Mend’s wedding. He also stated that there was nothing illegal in the vehicle and twice denied that there was a large amount of currency in the vehicle.

Officer Craft led his canine, who was trained to alert to the scent of various illegal drugs, around the vehicle. The dog alerted, and Officer Craft told Louis that he had probable cause to search the vehicle. In the search that followed, Officer Craft found three cardboard boxes in Louis’s trunk. Two of those boxes contained decorative rocks. The third contained a set of black throwing daggers and $133,420 in United States currency. No other contraband was found. Officer Craft seized the money, which he suspected was the proceeds of illegal drug trafficking, and transported Louis to the Flagstaff police station. At the station, Louis told the officers that he knew the currency was in the trunk of his car, but he gave no clear answer when asked whether the money was his. He refused to sign a form disclaiming ownership of the currency. The officers released Louis and returned his vehicle.

On June 5, 2009, the government began a civil forfeiture action by filing a complaint in district court that sought forfeiture of the currency seized from Louis’s car as proceeds traceable to controlled substances offenses under 18 U.S.C. § 981(a)(1)(C) and 21 U.S.C. § 881(a)(6). Louis filed a verified claim on August 12, 2009, which read, in full: “The undersigned hereby claims an ownership and/or a possessory interest in, and the right to exercise dominion and control over, all or part of the defendant property.”

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672 F.3d 629, 2012 WL 555987, 2012 U.S. App. LEXIS 3388, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-13342000-in-united-states-currency-ca9-2012.