United States v. Certain Funds Contained in Account Nos. 600-306211-006, 600-306211-011 & 600-306211-014 located at the Hong Kong & Shanghai Banking Corp.

96 F.3d 20, 1996 U.S. App. LEXIS 23606
CourtCourt of Appeals for the Second Circuit
DecidedSeptember 6, 1996
DocketNo. 2234, Docket 96-6125
StatusPublished
Cited by44 cases

This text of 96 F.3d 20 (United States v. Certain Funds Contained in Account Nos. 600-306211-006, 600-306211-011 & 600-306211-014 located at the Hong Kong & Shanghai Banking Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second 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. Certain Funds Contained in Account Nos. 600-306211-006, 600-306211-011 & 600-306211-014 located at the Hong Kong & Shanghai Banking Corp., 96 F.3d 20, 1996 U.S. App. LEXIS 23606 (2d Cir. 1996).

Opinion

JOSÉ A CABRANES, Circuit Judge:

In this appeal from a judgment for the appellees entered in the United States District Court for the Eastern District of New York (Denis R. Hurley, Judge), we are asked to decide whether 28 U.S.C. § 1355(b) (“section 1355(b)”), an amendment to the jurisdictional provisions of a civil forfeiture statute providing federal courts with jurisdiction over res located overseas, can be applied to an action begun before the effective date of the amendment. In addition, we consider whether so applying the amendment would present a likelihood of violating the Ex Post Facto Clause of the Constitution. In this effort we are guided by a recent decision of the Supreme Court that was not available to the district court when it rendered its decision. Finding that case dispositive, we hold that the amendment may be applied to civil forfeitures pending on the effective date of the amendment, and that it suffers no infirmity under the Ex Post Facto Clause. Accordingly, we reverse the judgment of the district court and remand for proceedings consistent with this opinion.

[22]*22I. Background

The following facts, taken from the opinions of Judge Hurley and then-Magistrate Judge Allyne R. Ross, are not disputed by the parties. In this in rem proceeding, brought under 21 U.S.C. § 881(a)(6) and 18 U.S.C. § 981(a)(1)(A), the Government seeks forfeiture of assets, valued at between 1.5 and 3 million dollars, located in Hong Kong. It alleges that the defendants in rem constitute proceeds of a conspiracy to import heroin into the United States and to launder the proceeds of that smuggling. The two claimants to the property, Ko Sai-Man and his wife, Chui Kim-Chun (jointly, “claimants”), are citizens and residents of Hong Kong. On September 4, 1991, Ko was acquitted in a Hong Kong court of charges of conspiracy to traffic in controlled substances. Chui was not prosecuted in Hong Kong and neither claimant was ever charged in a criminal prosecution in the United States. Immediately after the acquittal of Ko in Hong Kong, the defendant assets, which had been under restraint, were released by the High Court of Hong Kong. At the request of the United States, however, the Hong Kong Government immediately reinstated the seizure order, thereby keeping custody of the defendants in rem in anticipation of the instant forfeiture action. On September 20, 1991, the Government filed the Verified Complaint in this action in the Eastern District of New York. That complaint alleged that the claimants, and others, “engaged in a conspiracy to smuggle heroin from Hong Kong into the United States [through, among other places, John F. Kennedy International Airport in the Eastern District of New York] and to launder the proceeds of trafficking in heroin.” The complaint further alleged that the various listed properties located in Hong Kong “constitute proceeds traceable to the sale, manufacture, transportation and/or distribution of a controlled substance ... in violation of 21 U.S.C. § 841 et seq.” The complaint, warrant of arrest, and the first set of interrogatories directed to the claimants were sent to the Hong Kong Government. These documents were served by members of the Royal Hong Kong Police upon the two claimants.

The claimants filed their claim and answer pro se on October 15, 1991, in which they did not challenge the district court’s jurisdiction over the res. On April 6,1992, the claimants filed a motion for judgment on the pleadings pursuant to Fed.R.Civ.P. 12(c), requesting that the court dismiss the complaint for lack of jurisdiction over the res because the res was located outside the United States, and no statute conferred jurisdiction on the federal courts in these circumstances. The Government responded by asserting, inter alia, that the claimants had waived any such objections by failing to object to jurisdiction in their original claim and answer. In October 1992, while the claimants’ motion was under advisement in the district court, the statute conferring jurisdiction on federal courts over civil forfeiture proceedings was amended to provide district courts with in rem jurisdiction over a res located in a foreign country. Anti-Money Laundering Act, Pub.L. No. 102-550, § 1521, 106 Stat. 4044, 4062 (codified at 28 U.S.C. § 1355(b)). 28 U.S.C. § 1355 was amended by adding a new part (b), which provides in pertinent part that

[w]henever property subject to forfeiture under the laws of the United States is located in a foreign country, or has been detained or seized pursuant to legal process or competent authority of a foreign government, an action or proceeding for forfeiture may be brought [in the district court for the district in which any of the acts or omissions giving rise to the forfeiture occurred,] or in the United States District Court for the District of Columbia.

Following the enactment of this amendment, the parties presented arguments to the district court on the question of whether the statute applied retroactively and, in particular, whether it could be applied in the instant action.

In a Report and Recommendation filed November 16, 1993, Magistrate Judge Ross recommended granting claimants’ motion for judgment on the pleadings, finding, inter alia, that the October 1992 amendment to 28 U.S.C. § 1355 did not apply retroactive[23]*23ly.1 She reasoned that there was nothing on the face of the amendment or in its legislative history to suggest that it should apply retroactively and, in addition, that such retroactive application “would raise grave constitutional questions concerning the Ex Post Facto Clause.” Pursuant to Fed.R.Civ.P. 72(b), the Government objected to the magistrate judge’s report and recommendations, and Judge Hurley, upon de novo review, adopted the report and recommendation, granting claimants’ motion for judgment on the pleadings and dismissing the civil forfeiture action. In granting the claimants’ motion, Judge Hurley started from the premise, enunciated in a recent Supreme Court ease, that “the presumption against retroactive legislation is deeply rooted in our jurisprudence, and embodies a legal doctrine centuries older than our Republic.” Land-grafv. USI Film Prods., 511 U.S. 244,-, 114 S.Ct. 1483, 1497,128 L.Ed.2d 229 (1994). He recognized, however, that this presumption can be overcome by a clear showing of congressional intent to make the new statute retroactive. He then found that the legislative history of section 1355(b) revealed no such intent.

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96 F.3d 20, 1996 U.S. App. LEXIS 23606, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-certain-funds-contained-in-account-nos-600-306211-006-ca2-1996.