United States v. One (1) 1981 65' Skokum Motor Sailor Ketch Named "Silurian"

717 F. Supp. 1546, 1990 A.M.C. 262, 1989 U.S. Dist. LEXIS 9860, 1989 WL 95020
CourtDistrict Court, S.D. Florida
DecidedAugust 7, 1989
DocketNo. 86-995-CIV
StatusPublished
Cited by3 cases

This text of 717 F. Supp. 1546 (United States v. One (1) 1981 65' Skokum Motor Sailor Ketch Named "Silurian") is published on Counsel Stack Legal Research, covering District Court, S.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. One (1) 1981 65' Skokum Motor Sailor Ketch Named "Silurian", 717 F. Supp. 1546, 1990 A.M.C. 262, 1989 U.S. Dist. LEXIS 9860, 1989 WL 95020 (S.D. Fla. 1989).

Opinion

MEMORANDUM OPINION

SPELLMAN, District Judge.

FINDINGS OF FACT AND CONCLUSIONS OF LAW

THIS CAUSE comes before the Court upon Order of Remand, issued by the Eleventh Circuit Court of Appeals in the above-styled cause. Upon review and reconsideration of this matter, this Court finds the defendant vessel, ONE (1) 1981 65' SKO-KUM MOTOR SAILOR KETCH NAMED “SILURIAN”, is subject to forfeiture pursuant to 21 U.S.C.A. Section 881.

Jurisdiction

This Court has jurisdiction pursuant to 28 U.S.C.A. Section 1345 and 1355.

Procedural History

Plaintiff, United States of America, instituted forfeiture proceedings against the defendant vessel, ONE (1) 1981 65' SKOKUM MOTOR SAILOR KETCH NAMED “SILURIAN”, for alleged violations of 19 U.S. C.A. Section 1595a, 49 U.S.C.A.App. Section 781, 21 U.S.C.A. Section 881 and 19 U.S.C.A. Section 1703. This cause originally came before this Court upon a non-jury trial held on September 18, 1986. Upon conclusion of trial, this Court concluded that Claimant, Princessa, Inc., represented by its sole shareholder, James Maxwell (“Maxwell”), was an innocent owner pursuant to the standards set forth in Calero-Toledo v. Pearson Yacht Leasing Company, 416 U.S. 663, 94 S.Ct. 2080, 40 L.Ed.2d 452 (1974).1 Notwithstanding the establishment of this defense, this Court held that the vessel Silurian must be forfeited, pursuant to 19 U.S.C.A. Section 1703, and in accordance with this Court’s prior holding in U.S. v. One Homemade Vessel Named Barracuda, 625 F.Supp. 893 (S.D.Fla.1986).2

In response to the decision of the district court, Claimant, Princessa, Inc., by and through James Maxwell, appealed this matter to the Eleventh Circuit on the ground that Maxwell’s status as an innocent owner precluded forfeiture under this section. Upon review of this appeal, the Eleventh Circuit concluded that the district court failed to make adequate Findings of Fact regarding Maxwell’s status as an innocent owner. Specifically, the district court failed to investigate the suspicious circumstances surrounding the provenance of the vessel Silurian.3

As the Findings of Fact rendered by the district court were inadequate, the appellate court was precluded from addressing the issue on appeal — whether 19 U.S.C.A. Section 1703 provides an implicit exemption from forfeiture for innocent owners. Accordingly, the Eleventh Circuit remanded the case to the district court to reconvene an evidentiary hearing, to elicit further proof, to make additional Findings of Fact, and to reconsider its Conclusions of Law.

In compliance with the Eleventh Circuit’s Order of Remand, this Court held an evi-dentiary hearing on May 3, 1989; however, neither party adduced any additional or [1548]*1548new evidence in this matter. Having heard the evidence presented at trial, and upon review of the trial transcript, this Court hereby enters the following Findings of Fact and Conclusions of Law pursuant to Federal Rule of Civil Procedure 52.

Findings of Fact

1. On or about October 25, 1985, the United States Coast Guard stopped and boarded the vessel Silurian on the high seas.

2. Upon search of the vessel Silurian, the U.S. Coast Guard located a hidden compartment, to wit: A section of compartment within one of the fuel tanks, said compartment containing 676 pounds of marijuana.

3. The United States Customs Service seized defendant vessel on October 27, 1985, with approximately 676 pounds of marijuana on board.

4. Plaintiff, United States of America, has demonstrated probable cause to seize defendant vessel and to initiate forfeiture proceedings.4

5. Per stipulation of the parties, this Court finds that Princessa, Inc., is the sole Claimant to the vessel Silurian.

6. James Maxwell is the sole shareholder of Princessa, Inc.

7. This Court finds that Princessa, Inc., and James Maxwell as sole shareholder thereof, have standing to contest the instant forfeiture. This finding is based on the following:

(a) Princessa, Inc., is a Delaware corporation, incorporated on or about April 19, 1984, and pursuant to the Certificate of Good Standing issued by the State of Delaware, it remains a valid corporation to this date.

(b) That the sole stockholder and officer of the corporation is James Maxwell.

(c) That in July 1984, the corporation entered into a Memorandum of Sale to purchase the vessel Silurian from its prior owner, Jack Ralston.

(d) Claimant Princessa, Inc., owned, cared for, maintained and stored the Silurian from the time of purchase until its seizure, excluding the period of time the vessel was chartered to others.

8. Maxwell attended Florida Atlantic University and worked as a bartender for ten years while attending college.

9. Maxwell graduated from Florida Atlantic University in 1983.

10. Maxwell received student loans from 1981-1983.

11. Maxwell’s income tax returns reflect an earned income of $5,000.00 in 1981, $6,200.00 in 1982, and $6,900.00 in 1983.

12. Maxwell testified that in 1983, he earned $1,800.00 in interest from a savings account, with a balance of $20,000.00. Maxwell testified that he had accumulated this money from his work as a bartender. Claimant, however, failed to adduce any documents evidencing the existence of this savings account.

13. In 1984, Maxwell purchased a 46-foot sailing vessel, the Princessa, for $46,-000.00. Claimant did not expend any of his own funds in the purchase of this vessel.

14. Maxwell testified that he purchased the vessel Princessa with a loan he received from Spec Four Marketing Associates, Inc. (“Spec Four”).

15. Spec Four did not require Maxwell to post any security, or execute a promissory note to secure this loan. Claimant failed to adduce any documentation evidencing the existence of this loan.

16. Maxwell testified that he received this loan from Spec Four as payment for past work performed for the corporation.5

[1549]*154917. The president of Spec Four, Mike Sullivan, did not testify at trial, nor was his affidavit produced outlining the terms of the alleged loan.

18. In 1984, Maxwell purchased the vessel Silurian from Jack Ralston for $160,-000.00.

19. Jack Ralston was a relative stranger, however, after a few meetings with Maxwell, Ralston agreed to sell the Silurian.

20. Maxwell did not expend any of his own funds to purchase the Silurian.

21. Pursuant to the terms of the loan agreement, Maxwell was not required to secure the loan with a deposit or collateral. In addition, the loan was interest-free.

22.

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717 F. Supp. 1546, 1990 A.M.C. 262, 1989 U.S. Dist. LEXIS 9860, 1989 WL 95020, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-one-1-1981-65-skokum-motor-sailor-ketch-named-flsd-1989.