United States v. Certain Real Estate Property Located at 4880 S.E. Dixie Highway, Etc.

838 F.2d 1558, 1988 U.S. App. LEXIS 3075, 1988 WL 13192
CourtCourt of Appeals for the Eleventh Circuit
DecidedMarch 11, 1988
Docket86-5245
StatusPublished
Cited by36 cases

This text of 838 F.2d 1558 (United States v. Certain Real Estate Property Located at 4880 S.E. Dixie Highway, Etc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh 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 Real Estate Property Located at 4880 S.E. Dixie Highway, Etc., 838 F.2d 1558, 1988 U.S. App. LEXIS 3075, 1988 WL 13192 (11th Cir. 1988).

Opinion

CLARK, Circuit Judge:

This is an appeal by the United States of an award of attorney’s fees pursuant to the Equal Access to Justice Act (“EAJA”), 28 U.S.C. § 2412(b), (d). The district court, 628 F.Supp. 1467, found that the United States’ position in the underlying forfeiture action was not “substantially justified” within the meaning of 28 U.S.C. § 2412(d)(1)(A). As an alternative ground for awarding fees, the court relied on 28 U.S.C. § 2412(b). Having concluded that the district court made certain errors in its application of the EAJA, we vacate the district court’s award and remand.

I. BACKGROUND

On June 21, 1985, attorneys for the United States filed a verified complaint for the forfeiture of real property situated in Martin County, Florida. 1 The complaint contained no supporting factual allegations which would indicate that the subject property was subject to forfeiture. The only articulated basis for bringing the forfeiture action was as follows:

5. By reason of the foregoing and pursuant to the provisions of Title 21, United States Code, Section 881(a)(6), 2 the subject real property is subject to forfeiture to the United States of America.

The district court clerk, pursuant to former Rule C(3) of the Supplemental Rules for *1560 Certain Admiralty and Maritime Claims (“Supplemental Rules”) issued an in rem warrant for the arrest of the subject property. 3 The next day, United States Marshals seized and took control of the property and shortly thereafter, the claimant/owners filed emergency motions for its return.

The district court quashed the arrest warrants and dismissed the government’s complaint. Through an analysis based on the Due Process Clause of the Fifth Amendment, the court held that real property could not be seized without some prior hearing before a judicial officer. 4 The court also said that it “could have decided [the] case on the narrower ground that the government’s verified complaint fails to establish that the claimants’ property is subject to forfeiture.” But it considered the resolution of the constitutional question obligatory since the process by which the court clerk could issue in rem arrest warrants would otherwise have remained intact. 612 F.Supp. at 1498.

II. SECTION 2412(d)(1)(A)

28 U.S.C. § 2412(d)(1)(A) provides that a court

shall award to a prevailing party other than the United States fees and other expenses, ... incurred by that party in any civil action (other than cases sounding in tort), ... brought by or against the United States in any court having jurisdiction of that action, unless the court finds that the position of the United States was substantially justified or that special circumstances make an award unjust.

Under this statute, civil litigants who prevail against the United States are entitled to attorney fees and costs if the United States fails to demonstrate that its “position” was “substantially justified.” Congress amended the EAJA in 1985 to make clear that the term “position” “means, in addition to the position taken by the United States in the civil action, the action or failure to act by the agency upon which the civil action is based.” 5 28 U.S.C. *1561 § 2412(d)(2)(D). The standard for substantial justification is one of reasonableness. Accordingly, the government must show that its case “had a reasonable basis in both law and fact.” Stratton v. Bowen, 827 F.2d 1447, 1449 (11th Cir.1987) (citing H.R.Rep. No. 1418, 96th Cong., 2d Sess. 10, reprinted in 1980 U.S.Code Cong. & Admin.News 4984, 4989; Haitian Refugee Center v. Meese, 791 F.2d 1489, 1496 (11th Cir.1986)) (other citations omitted). 6

Although the court did not articulate clearly its reasons for concluding that the United States’ position lacked substantial justification, it appears to have relied on three factors. First, it rejected the government's argument that the court’s ruling on the constitutionality of the process by which the property was seized was unforeseeable. The court concluded that the differences between real and personal property are so substantial that, for the purposes of seizure and forfeiture under federal statutes, the government should not have attempted to avail itself of the procedures provided by the Supplemental Rules. 628 F.Supp. 1467, 1469-70 (S.D.Fla.1986). Second, the court concluded the manner in which the Marshals seized and took control of the subject property was “similarly unjustified.” Id. at 1470. Finally, the court considered the fact that “[tjhe government failed to present even one fact in its complaint to buttress its seizure of the claimants’ property of the forfeiture proceedings.” Id. at 1469.

A.

It is clear that the first of these factors considered by the court cannot provide the basis for fee award under the EAJA. 21 U.S.C. § 881(b) provides specifically that property subject to forfeiture "may be seized by the Attorney General upon process issued pursuant to the Supplemental Rules____” It makes no distinction between real and personal property. Former Supplemental Rule C(3), like the current version of the same rule, also lacked such a distinction. 7 Moreover, the district court’s position that the Due Process Clause prohibits the seizure of real property (for the purposes of forfeiture) without some preseizure judicial approval has been refuted by this court since the district court’s ruling. In United States v. A Single Family Residence, 803 F.2d 625 (11th Cir.1986), we held that seizures for the purposes of forfeiture under 21 U.S.C. §881 “present[] an extraordinary situation justifying postponement of notice and hearing.” Id. at 632 (citing Calero-Toledo *1562 v. Pearson Yacht Leasing Co.,

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Bluebook (online)
838 F.2d 1558, 1988 U.S. App. LEXIS 3075, 1988 WL 13192, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-certain-real-estate-property-located-at-4880-se-dixie-ca11-1988.