United States v. One 1958 Ford 4-Door Sedan

172 F. Supp. 313, 1959 U.S. Dist. LEXIS 3430
CourtDistrict Court, D. South Dakota
DecidedApril 27, 1959
DocketCiv. No. 1183
StatusPublished
Cited by2 cases

This text of 172 F. Supp. 313 (United States v. One 1958 Ford 4-Door Sedan) is published on Counsel Stack Legal Research, covering District Court, D. South Dakota 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 1958 Ford 4-Door Sedan, 172 F. Supp. 313, 1959 U.S. Dist. LEXIS 3430 (D.S.D. 1959).

Opinion

MICKELSON, Chief Judge.

This is a forfeiture proceeding under the provisions of Sections 7302 and 7323 [315]*315of Title 26 United States Code. The Rozum Motor Company of Mitchell, South Dakota, petitioned this court for remission of forfeiture under the provisions of 18 U.S.C.A. § 3617. The Government answered and alleged that the petitioner had not complied with the provisions of 18 U.S.C.A. § 3617(b) prior to acquiring its interest in and to the vehicle in question and that, therefore, the petitioner was not entitled to a remission of the forfeiture.

The case was submitted to the court on April 9, 1959, on an agreed statement of facts, supplemented by oral testimony. The pertinent facts are as follows: on June 9, 1958, a conditional sales contract covering the vehicle in question, a 1958 Ford 4-door sedan, was entered into between the petitioner, Rozum Motor Company, and Leonard Jirsa, the purchaser. Leonard Jirsa and his wife, Genevieve Fay Jirsa, pleaded guilty on December 11, 1958, to the charge of engaging in business as a retail liquor dealer without having first paid the special tax therefor, in violation of 26 U.S.C.A. § 5691. In this proceeding, it has been stipulated that Genevieve Fay Jirsa was engaged in such business from the 6th day of September, 1958, to November 14, 1958, and that the vehicle in question was in her possession and being used by her for such unlawful purpose. It is undisputed that the petitioner acquired its interest in the vehicle in good faith, and that it had at no time any knowledge or reason to believe that the vehicle was being or would be used in the violation of laws of the United States or of any state relating to liquor. It is also undisputed that the petitioner made no inquiry of any of the officers mentioned in Sec. 3617(b) (3) as to whether Leonard Jirsa had any record or reputation for violating liquor laws. The Mitchell chief of police, his assistant, the sheriff, the supervisor of the Internal Revenue Service for this Federal District, and a revenue service agent all testified that on June 9, 1958, the date of the conditional sales transaction in question, Leonard Jirsa had a reputation for violation of liquor laws; that the petitioner made no inquiry of any of them regarding such reputation; and that if such inquiry had been made, they would have informed the petitioner that Leonard Jirsa had such a reputation with them.

In Murdock Acceptance Corp. v. United States, 350 U.S. 488, 76 S.Ct. 536, 537, 100 L.Ed. 580, Sec. 3617 of Title 18 U.S.C.A. is interpreted as follows:

“That section provides that in a forfeiture proceeding the District Court ‘shall have exclusive jurisdiction to remit’ the forfeiture, but that . the court ‘shall not allow’ remission unless the finance company (1) acquired its interest in good faith; (2) had no reason to believe that the automobile would be used in violation of the liquor laws; and (3), ‘was informed in answer to (its) inquiry, at the headquarters of the sheriff, chief of police, principal Federal internal-revenue officer engaged in the enforcement of the liquor laws, or other principal local or Federal law-enforcement officer of the locality * * * that (the purchaser) had no * * * record or reputation (for violating laws of the United States or of any State relating to liquor),’ ”

The petitioner contends, and it is not disputed by the Government, that the burden of proof lies with the Government to establish the record or reputation of the person in possession of the car for violation of the liquor laws, before the petitioner is required to prove that inquiries were made as provided in 18 U.S.C.A. § 3617(b) (3). See City National Bank & Trust Co. of Oklahoma City, Okl. v. United States, 8 Cir., 163 F.2d 820. But the petitioner contends that the reputation which the Government'must establish as having existed at the time of the transaction is reputation as it is commonly used and in its general sense; i. e., “The statute is drawn so as to impose upon the seller the duty of inquiry only when there exists something which Is likely to reach [316]*316his ears, a public record or a general reputation.” United States v. C. I. T. Corporation, 2 Cir., 93 F.2d 469, 470. The Government, on the other hand, urges that the reputation referred to in the statute does not mean the general reputation the petitioner had in the community, but rather that reputation which the person bore with any one of the law enforcement officers enumerated in the statute. .

To sustain its position, petitioner has cited the case of United States v. C. I. T. Corporation, supra. It is true that in that case, Judge Learned Hand, speaking for the Court, held that the Government must establish that there was at the time of the transaction, a general reputation which would in the normal course of credit investigation be likely to reach the seller’s ears. Our own research has shown that this decision is supported by at least two district court cases, United States v. One 1950 Model Buick, 2-Door Sedan, 137 F.Supp. 643; and United States v. One Terraplane Sedan, 23 F.Supp. 710. See also, United States v. Shell, 4 Cir., 212 F.2d 789. However, notwithstanding the excellent reasoning employed by Judge Hand and our own dislike of forfeitures, the weight of authority rests heavily against his decision. In United States v. Interstate Securities Co., 10 Cir., 218 F.2d 243, 245, reputation is defined as follows: “A reputation in its statutory sense is confined to the opinion of the law enforcement officers designated in the statute and gathered from knowledge gained by them generally in the performance of their duties.” See also, United States v. Drive New Cars, 10 Cir., 208 F.2d 774; Manufacturers Acceptance Corp. v. United States, 6 Cir., 193 F.2d 622; United States v. One 1939 Model DeSoto Coupe, 10 Cir., 119 F.2d 516; United States v. McArthur, 5 Cir., 117 F.2d 343; United States v. Ford Truck, etc., 3 Cir., 115 F.2d 864. Cf., Commercial Credit Corporation v. United States, 8 Cir., 175 F.2d 905, 910. Further, in the words of Judge Dobie, in United States v. One Hudson Coupe, 1938 Model, 4 Cir., 110 F.2d 300, 303, “We do not think it was the intendment of [subsection (b) (3)] to impose the duty of inquiry only when the person’s reputation for illicit dealing in unlawful liquor transactions had achieved such a notoriety that it was known or should have been known by the claimant and others in ordinary business transactions.

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United States v. One 1959 Buick 4-Door Sedan
188 F. Supp. 155 (N.D. New York, 1960)

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Bluebook (online)
172 F. Supp. 313, 1959 U.S. Dist. LEXIS 3430, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-one-1958-ford-4-door-sedan-sdd-1959.