United States v. Alston

717 F. Supp. 378, 1989 U.S. Dist. LEXIS 9137, 1989 WL 88962
CourtDistrict Court, M.D. North Carolina
DecidedMay 9, 1989
DocketC-88-665-WS
StatusPublished
Cited by11 cases

This text of 717 F. Supp. 378 (United States v. Alston) is published on Counsel Stack Legal Research, covering District Court, M.D. North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Alston, 717 F. Supp. 378, 1989 U.S. Dist. LEXIS 9137, 1989 WL 88962 (M.D.N.C. 1989).

Opinion

MEMORANDUM OPINION

GORDON, Senior District Judge:

This matter is before the court on plaintiffs’ motion for summary judgment pursuant to Federal Rule of Civil Procedure 56(c). The court will grant the motion because there is no genuine issue as to any material fact and plaintiffs are entitled to a judgment as a matter of law.

I.

The parties have agreed to the facts of this case.

Pursuant to a warrant, Winston-Salem police officers entered and searched a residence on 4 February 1987. The search produced weapons and twenty plastic bags containing cocaine. The officers also found that Defendant Robert Alston, Jr. (Alston) possessed keys to the residence and a total of $10,638 in cash (the cash). Alston was arrested and charged with the possession of cocaine with intent to sell and deliver it and intentionally maintaining a building in violation of the Controlled Substances Act (Act). N.C.Gen.Stat. §§ 90-95(a)(l), 90-108(a)(7) (1985).

The officers asked Special Agent Mertes of the Drug Enforcement Administration (DEA) to adopt their seizure of the cash. Agent Mertes reviewed the evidence obtained in the search and she determined that there existed probable cause to believe that the cash was proceeds traceable to illegal exchanges of narcotics and was held with the intent to facilitate other such exchanges. 21 U.S.C.A. § 881(a)(6) (West 1981). On 10 February 1987, Agent Mertes adopted the seizure of the cash; thereafter, the DEA initiated administrative forfeiture proceedings.

The prosecution of Alston began in the Forsyth County District Court. State of North Carolina v. Alston, 87 CR 2992/87 CR 07319. That action was dismissed on 15 April 1987. Upon motion, Judge Abner Alexander ordered on 23 April 1987 that Plaintiff Winston-Salem Police Department (Police Department) return the cash to Alston.

The DEA, having complied with all applicable statutes and regulations, declared on 24 April 1987 that the cash was forfeited to Plaintiff United States of America (government) pursuant to 19 U.S.C.A. § 1609 (West 1980 & Supp.1988). The Police Department filed on 3 March 1987 a request with the DEA seeking equitable distribution in the amount of eighty-five percent of the forfeited cash [less $30 “buy” money] pursuant to 21 U.S.C.A. § 881(e)(1)(A) (West Supp.1988), 19 U.S.C.A. § 1616a(c) (West Supp.1988). The DEA concurred with this request. On 20 May 1987, the United States Marshall issued a check in the amount of $9,016.80 to the Police Department.

On 30 September 1987, a jury found Alston guilty of violating the Act. On 1 October 1987, Judge Donald Stephens of the Forsyth County Superior Court ordered the Police Department to return the cash to Alston because the state had failed to dem *380 onstrate that the cash was subject to forfeiture under General Statute § 90-112. This order was not served upon or carried out by the Police Department.

The state, through the District Attorneys Office, moved the Superior Court to rescind its order and to reconsider its disposition of the cash. On 30 March 1988, Judge Stephens modified the order by requiring the Police Department to forward the cash to the Clerk of Court to be held for further proceedings. The Police Department complied with this order under protest on 11 April 1988.

The government began this action against Alston on 29 June 1988 seeking declaratory relief based on the conflict between the orders issued by Judge Stephens and the administrative declaration of forfeiture entered by the DEA. In its amended complaint, the government named the Winston-Salem/Forsyth County Board of Education (Board) and the Police Department as defendants. The Police Department was realigned as a plaintiff. The Board admitted in its answer that the doctrine of res judicata precluded Alston's claim to the cash. Finally, the Attorney General of North Carolina has intervened, with the consent of the court, as amicus curiae in support of the government’s position.

II.

The first issue presented is whether the state superior court had jurisdiction to enter the October 1987/March 1988 orders with respect to the cash. 1

The DEA adopted the Police Department’s seizure of the cash. The Board does not dispute that the government has the power to adopt local seizures generally or that the government had probable cause to adopt the cash in this case. 2 Notwithstanding these facts, the Board claims that because the state court assumed jurisdiction over the cash prior to the institution of this action, the state court may exercise its jurisdiction to the exclusion of other courts. This assertion is without merit.

By reason of the adoption principle, the cash is deemed to have been seized by the government and, thus, subject to federal jurisdiction as of 4 February 1987, the date of seizure. The Caledonian, 17 U.S. 100, 103, 4 Wheat. 100, 4 L.Ed. 523 (1819). Plaintiffs’ reliance on 21 U.S.C.A. § 881(h) (West Supp.1988) to establish jurisdiction is misplaced. United States v. $79,12349 in United States Cash and Currency, 830 F.2d 94, 99 (7th Cir.1987). Federal courts have original jurisdiction, exclusive of the state court’s, over any action for forfeiture under federal law. 28 • U.S.C.A. § 1355 (West 1976 & Supp.1988). Because the government had won the unseemly race to the res, the state superior court was without jurisdiction to issue any order concerning the disposition of the cash after the federal seizure. United States v. $48,231 in United States Currency, No. C-87-782G, slip op. at 7 (M.D.N.C. Dec. 14, 1988) (Sharp, Mag.); City of San Jose v. Superior Court, 195 Cal.App.3d 743, 240 Cal.Rptr. 882 (1987); Michigan State Police v. 33rd Dist. Court, 138 Mich.App. 390, 360 N.W.2d 196 (1984); cf. United States v. *381 One 1985 Cadillac Seville, 866 F.2d 1142, 1144-46 (9th Cir.1989) (federal court precluded from exercising jurisdiction over monies due to pending state court proceeding).

III.

Assuming that the state court was deprived of jurisdiction, the Board argues that Section 1616a establishes a preference for discontinuing federal forfeiture proceedings in favor of forfeiture under state law. This preference, however, is not mandatory. The statute provides that the Attorney General may either discontinue or dismiss forfeiture proceedings under Section 1616a(b) or use the equitable sharing provisions of Section 1616a(c). The facts of this case preclude a finding that this discretion was abused.

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Cite This Page — Counsel Stack

Bluebook (online)
717 F. Supp. 378, 1989 U.S. Dist. LEXIS 9137, 1989 WL 88962, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-alston-ncmd-1989.