United States v. $2,542 in U.S. Currency

754 F. Supp. 378, 1990 U.S. Dist. LEXIS 18058, 1990 WL 255591
CourtDistrict Court, D. Vermont
DecidedDecember 18, 1990
DocketCiv. A. No. 90-119
StatusPublished
Cited by11 cases

This text of 754 F. Supp. 378 (United States v. $2,542 in U.S. Currency) is published on Counsel Stack Legal Research, covering District Court, D. Vermont primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. $2,542 in U.S. Currency, 754 F. Supp. 378, 1990 U.S. Dist. LEXIS 18058, 1990 WL 255591 (D. Vt. 1990).

Opinion

OPINION AND ORDER

PARKER, District Judge.

This case presents the question whether this Court has jurisdiction to hear the Government’s complaint for civil forfeiture of a person’s property when, at the time it was seized by federal officials, the property was the subject of a Rule 41(e) motion for return of property in state court. We conclude that jurisdiction is lacking and accordingly dismiss the complaint.

BACKGROUND

On September 6, 1989, Vermont state police obtained a search warrant from the Vermont District Court to search the residence of Daniel D’Amico in Eden, Vermont. The search, executed on the same day, turned up marijuana, paraphernalia and the money that is at issue. D’Amico was arrested at the scene, was subsequently charged by information (on October 30, 1989), and eventually pled nolo to misdemeanor possession of marijuana (on August 24, 1990). After his arrest, a state

police officer, believing the money was for-feitable under federal law (see 21 U.S.C. § 881), called the federal Drug Enforcement Administration (DEA) offices and informed an agent of the existence of the money. The state did not itself intend to commence a forfeiture action against the money. D’Amico, unaware of the communication with DEA, moved in state court (Lamoille District Court) for return of the money on September 12, 1989. V.R.Cr.P. 41(e). The hearing on this motion began on September 28, 1989, and was scheduled to continue on October 4, 1989. Before it reconvened, however, state police turned the money over to a DEA agent, without court authorization or prior notice to D’Am-ico.

D’Amico was notified in December 1989 that the DEA was beginning an administrative forfeiture proceeding against the money. He filed a claim and posted a bond in response and the matter was referred to the U.S. Attorney’s office for initiation of judicial forfeiture proceedings, which are now before this Court.

D’Amico has moved to dismiss for want of subject matter jurisdiction, claiming that the seizure of the money by federal authorities during the pendency of state proceedings involving the subject property was unlawful. His argument, essentially, is that once the property was seized pursuant to state warrant, the Vermont District Court assumed jurisdiction over it, which could not be divested by unilateral action of either state or federal agents. Moreover, the money was the subject of an in rem proceeding, namely, D’Amico’s motion for return, and two courts may not simultaneously assert jurisdiction over the same res. The seizure by federal agents was therefore unlawful, and this Court, D’Ami-co argues, lacks jurisdiction over the matter.

DISCUSSION

I.

Two courts may not exercise simultaneous in rem jurisdiction over the same res. This circuit has recently held [380]*380that a federal court may enjoin a state court proceeding “[wjhere the federal court’s jurisdiction is in rem and the state court action may effectively deprive the federal court of the opportunity to adjudicate as to the res.” Standard Microsystems Corp. v. Texas Instruments Inc., 916 F.2d 58, 60 (2d Cir.1990). Conversely, where the state court’s in rem jurisdiction is antecedent, a federal court may not take jurisdiction over the res. In U.S. v. $79,12349 in U.S. Cash and Currency, 830 F.2d 94, 95 (7th Cir.1987), the Seventh Circuit held that the federal district court could not take jurisdiction over property seized by a federal agent prior to termination of a state forfeiture proceeding involving the same res. “[Wjhen state and federal courts each proceed against the same res, ‘the court first assuming jurisdiction over the property may maintain and exercise that jurisdiction to the exclusion of the other.’ ” Id. at 96 (quoting Penn. General Casualty Co. v. Pennsylvania, 294 U.S. 189, 195, 55 S.Ct. 386, 388-389, 79 L.Ed. 850 (1935)).

This rule of “prior exclusive jurisdiction” applies to in rem and quasi in rem actions1 because in such cases the court or its officer must have possession or control of the subject property in order to grant the relief sought. Id. at 97. Indeed, “[t]o safeguard the integrity of its orders, the first court to assume jurisdiction over the res may even enjoin proceedings in the second.” Id. at 97 n. 3. The mere fact of possession by federal officials does not vest jurisdiction in the federal court. “To hold otherwise would substitute a rule of force for the principle of mutual respect embodied in the prior exclusive jurisdiction doctrine.” Id. at 98. Identical principles are stated in U.S. v. One 1985 Cadillac Seville, 866 F.2d 1142, 1145 (9th Cir.1989) (“rule of long standing prohibits a court, whether state or federal, from assuming in rem jurisdiction over a res that is already under the in rem jurisdiction of another court”), petition for cert, filed, May 10, 1989. The matter is not within the discretion of the federal court: “a federal court must yield to a prior state proceeding.” Id. (emphasis in original). Principles of comity and féderalism underlie the doctrine. “The purpose of the rule is the maintenance of comity between courts; such harmony is especially compromised by state and federal judicial systems attempting to assert concurrent control over the res upon which jurisdiction of each depends.” Id.

The Government does not dispute these principles, but notes, correctly, that in U.S. v. $79,12349, unlike the present case, the state (Wisconsin) had itself brought a forfeiture action against the currency prior to the U.S. marshal’s seizure of the money. (One 1985 Cadillac also involved a prior state forfeiture action.) Emphasizing this point, the Government argues that this case is distinguishable because here, where the state had not sought forfeiture, there was no in rem jurisdiction over the property in state court. Therefore, the federal court was the first court to assume jurisdiction over the res. Conceding that only one court may exercise in rem jurisdiction over the currency at a time, the Government relies on the premise that the only state action in this case is an in personam [381]*381action — the criminal proceeding against D’Amico. Thus the question squarely before the Court is whether the state Rule 41(e) proceeding for return of the property is in rem or quasi in rem, or whether it is in personam.

II.

The Government relies principally on U.S. v. Castro, 883 F.2d 1018 (11th Cir.1989), for the proposition that Criminal Rule 41(e) is not the appropriate remedy to seek the return of property when the property is subject to civil forfeiture proceedings.

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Cite This Page — Counsel Stack

Bluebook (online)
754 F. Supp. 378, 1990 U.S. Dist. LEXIS 18058, 1990 WL 255591, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-2542-in-us-currency-vtd-1990.