United States v. $80,020.00 in U.S. Currency

57 F. Supp. 3d 143, 2014 U.S. Dist. LEXIS 157964, 2014 WL 5759573
CourtDistrict Court, D. Puerto Rico
DecidedNovember 6, 2014
DocketCivil No. 13-1381 (FAB)
StatusPublished
Cited by1 cases

This text of 57 F. Supp. 3d 143 (United States v. $80,020.00 in U.S. Currency) is published on Counsel Stack Legal Research, covering District Court, D. Puerto Rico primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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United States v. $80,020.00 in U.S. Currency, 57 F. Supp. 3d 143, 2014 U.S. Dist. LEXIS 157964, 2014 WL 5759573 (prd 2014).

Opinion

MEMORANDUM & ORDER1

BESOSA, District Judge.

Before the Court is the United States’ motion to strike claimant Carlos Nazario-Lopez’s answer to the complaint and for default judgment. (Docket No. 21.) For the reasons discussed below, the Court DENIES the United States’ motion.

I. BACKGROUND

A. Procedural Background

On May 15, 2013, plaintiff United States filed a complaint pursuant to Rule G(8)(c) (generally, “Rule G”) of the Supplemental Rules for Admiralty or Maritime Claims and Asset Forfeiture Actions, asserting a forfeiture action against $80,020.00 in U.S. currency. (Docket No. 1.) On that same day, plaintiff requested an arrest warrant in rem and seizure of the currency. (Docket No. 2.) The Court granted plaintiffs request on May 17, 2013. (Docket No. 4.) On June 10, 2013, claimant Nazario answered the complaint. (Docket No. 6.) The United States filed a notice of publication on June 24, 2013. (Docket No. 7.) Subsequently, on August 1, 2013, the claimant submitted a request for admissions to the United States. (Docket No. 13-1.) On September 17, 2013, having received no timely response from the government, the claimant requested that the Court deem the unanswered requests admitted. (Docket No. 13.) The United States responded, explaining that though the responses had been prepared on time, through inadvertence they had not been sent out on time. (Docket No. 14.) On September 25, 2013, however, the Court deemed the claimant’s requests 1, 2, 4, 9, and 10 admitted. (Docket No. 20.) On August 18, 2014, the United States filed a motion to strike the claimant’s answer to the complaint and for a default judgment. (Docket No. 21.) Claimant Nazario did not oppose that motion.

B. Factual Background

On November 4, 2010, Puerto Rico Police Department (“PRPD”) Agent Carlos [145]*145Rivera-Walker pulled a 2010 Toyota Camry over because of traffic violations. (Docket No. 1-1 at ¶ 3.) Claimant Nazario was the owner of, and front passenger in, the vehicle. Id. Because the driver did not have the vehicle’s registration, Agent Rivera ordered the occupants to exit the vehicle and searched it. Id. During a search of the vehicle,2 Agent Rivera found an undetermined amount of U.S. currency wrapped in vacuum-sealed plastic inside a black backpack behind the driver’s seat. Id. According to the United States, a K-9 unit (commonly known as a dog) subsequently swept the car and alerted positive to the presence of narcotics in both the currency and the vehicle. Id. As a result, Special Agent Carpió, who had been contacted by Agent Rivera, seized the U.S. currency and the vehicle. Id. at ¶ 4. The currency was later determined to be $80,020.00. Id.

The United States alleges that all four individuals in the car denied ownership of the money. Id. at ¶ 5. Agent Carpió believed that sufficient probable cause indicated that the money represented proceeds of drug trafficking violations pursuant to 21 U.S.C. § 841(a)(1) and money laundering pursuant to 18 U.S.C. §§ 1956(a)(1)(B)®, 1957(a). Id.

Because the matters have been deemed admitted, the United States has now admitted that claimant Nazario objected to the vehicle search and that the government had no written authorization to search the vehicle. (Docket No. 20, 13-1 ¶ 9-10.) In addition, the United States has admitted that no illegal substances were found on any of the four individuals and that no admissible evidence existed to connect the money seized with any illegal substance transaction. Id. at ¶ 1-2. Both parties agree that no criminal charges have been filed against the claimant or against any of the other occupants of the vehicle. Id. at ¶ 4.

II. LEGAL STANDARD

A. Supplemental Rule G(8)

Supplemental Rule G applies to forfeiture actions in rem arising from a federal statute. The relevant federal statute here is Title 18, Section 981 of the United States Code, which permits civil forfeiture of any property constituting, derived from, or traceable to any unlawful activity.

Rule G(8)(c)(i) authorizes the Court to strike a claim or answer on motion by the government if a claimant fails to comply with Rule G(6) or if the claimant lacks standing. Rule G(8)(c)(ii)(B) further provides that a motion to strike a claim “may be presented as a motion for judgment on the pleadings or as a motion to determine after a hearing or by summary judgment whether the claimant can carry the burden of establishing standing by a preponderance of the evidence.” To establish standing, “the claimant must start by demonstrating an ownership or possessory interest in the seized property.” United States v. $8,440,190.00 in U.S. Currency, 719 F.3d 49, 57 (1st Cir.2013) (citing United States v. One-Sixth Share of James J. Bulger, 326 F.3d 36, 40 (1st Cir.2003)). See also Fed.R.Civ.P. G(8)(c)(ii)(B).

B. Rule 12(c)

“After the pleadings are closed— but early enough not to delay trial—a party may move for judgment on the pleadings” pursuant to Federal Rule of Civil [146]*146Procedure 12(c). That motion “is employed as a vehicle to test the plausibility of a complaint, [and] it must be evaluated as if it were a motion to dismiss under Federal Rule of Civil Procedure 12(b)(6).” Grajales v. P.R. Ports Auth., 682 F.3d 40, 44 (1st Cir.2012). Thus, “[a] plaintiff is not entitled to ‘proceed perforce’ by virtue of allegations that merely parrot the elements of the cause of action.” Ocasio-Hernandez v. Fortuño-Burset, 640 F.3d 1, 12 (1st Cir.2011) (quoting Ashcroft v. Iqbal, 556 U.S. 662, 680, 129 S.Ct. 1937, 173 L.Ed.2d 868 (2009)). The Court “must accept all of the non-movant’s well-pleaded factual averments as true, and draw all reasonable inferences in his [or her] favor.” Santiago de Castro v. Morales Medina, 943 F.2d 129, 130 (1st Cir.1991) (quoting Rivera-Gomez v. de Castro, 843 F.2d 631, 635 (1st Cir.1988)). The motion cannot be granted “unless it appears beyond doubt that the [claimant] can prove no set of facts in support of [his or her] claim which would entitle [him or her] to relief [as a matter of law].” Id. (quoting Rivera-Gomez, 843 F.2d at 635).

III. DISCUSSION

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57 F. Supp. 3d 143, 2014 U.S. Dist. LEXIS 157964, 2014 WL 5759573, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-8002000-in-us-currency-prd-2014.