United States v. One 1961 Red Chevrolet Impala Sedan, Serial No. 11837A177369

457 F.2d 1353
CourtCourt of Appeals for the Fifth Circuit
DecidedMarch 27, 1972
DocketNos. 71-2241, 71-2242
StatusPublished
Cited by6 cases

This text of 457 F.2d 1353 (United States v. One 1961 Red Chevrolet Impala Sedan, Serial No. 11837A177369) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth 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. One 1961 Red Chevrolet Impala Sedan, Serial No. 11837A177369, 457 F.2d 1353 (5th Cir. 1972).

Opinion

CLARK, Circuit Judge:

This case involves the questions of whether appellant is entitled to the return of property forfeited to the United States pursuant to libels of information filed by the government on January 25, and February 15, 1962, and, if he is so entitled, the legal form in which such return must be sought. The forfeiture involved was entered on December 30, 1963, under Section 7302 of the Internal Revenue Code of 1954, 26 U.S.C.A. § 7302, on grounds that the property had been used in conducting a gambling business without payment of the taxes required by Title 26 U.S.C.A., Sections 4401 and 4411, and without the registration required by Title 26, U.S.C.A., Section 4412. The personal property forfeited was sold by the U.S. Marshal on June 14, 1965.

In reliance on the decision of the United States Supreme Court in United States v. United States Coin and Currency, 401 U.S. 715, 91 S.Ct. 1041, 28 L.Ed.2d 434 (1971) appellant filed two motions in the original 1962 district court proceedings seeking to set aside the prior forfeiture, dismiss the libels of information, and order the return of all money and personal property, previously forfeited, or its value. The district court denied the motions, holding that appellant had failed to pursue the proper remedy. This appeal followed.

In light of its prior decisions in Mar-chetti v. United States, 390 U.S. 39, 88 S.Ct. 697, 19 L.Ed.2d 889 (1968) and Grosso v. United States, 390 U.S. 62, 88 S.Ct. 709, 88 S.Ct. 709, 19 L.Ed.2d 906 (1968) the Supreme Court held in Coin and Currency that the privilege against self-incrimination was a complete defense to a forfeiture proceeding based on criminal prosecutions against a gambler for failure to register and pay the related gambling tax. In answer to the government’s argument that the Mar-chetti-Grosso rule should not be retroactively applied to govern seizures taking place before the date of the decisions because of the government’s collection of almost $7 million worth of property in reliance on prior Supreme Court decisions,1 the Court stated:

Given the aim of the Marchetti-Grosso rule, it seems clear that the Government must be required to undergo the relatively insignificant inconvenience involved in defending any lawsuits that may be anticipated. Indeed, this conclusion flows a fortiori from those decisions mandating the retroactive application of those new rules which . [hold] that the conduct being penalized is constitutionally immune from punishment. No circumstances call more for the invocation of a rule of complete retroactivity.

91 S.Ct. at 1046. The government in the instant case does not question that appellant’s property was improperly forfeited for his unpunishable conduct. Rather the government argues that he did not pursue the proper remedy for the property’s recovery.

Appellant’s motions were apparently based on Rule 60(b) (4) of the Federal Rules of Civil Procedure, which provides that, on motion made within a reasonable time, the Court may relieve a party [1356]*1356from a void final judgment.2 Reliance on Rule 60(b) is misplaced for two reasons.

First, the relief requested is not within the district court’s authority to grant under the Rule. In Bishop v. United States, 5th Cir. 1959, 266 F.2d 657, claimant in a condemnation suit was awarded $185,000 for land which he had previously acquired from the government. Following final judgment, the government filed motions pursuant to Rule 60(b) to set aside the award, to rescind the original deeds on the basis of fraudulent procurement, and to require an accounting from claimant for all revenues realized from the property since the date of purchase. The district court granted all relief requested and this Court reversed, holding that the only relief which could be granted under Rule 60(b) was the setting aside of the judgment. Setting the condemnation award aside would have merely left the condemnation suit open and would not have aided the government’s cause. Similarly, appellant in the instant case asks for more than merely setting the forfeiture decree aside. He would have the district court go further and order the government to reach into its coffer and return the money and property involved to him. Bishop makes clear that such further affirmative relief can not be sustained under Rule 60(b).

Second, in the instant case this forfeiture proceeding has been finalized by sale of the forfeited property and placing the moneys into the general treasury. Appellant’s motion thus in essence requests payment out of the public fisc and requires an affirmative act by the sovereign. See Dugan v. Rank, 372 U.S. 609, 620, 83 S.Ct. 999, 1006, 10 L.Ed.2d 15 (1963). Rule 60(b) cannot, and should not, serve as a substitute for the governmental consent to be sued required in such cases. See United States v. Sherwood, 312 U.S. 584, 589-590, 61 S.Ct. 767, 771, 85 L.Ed. 1058 (1941); United States v. Shaw, 309 U.S. 495, 500-501, 60 S.Ct. 659, 661, 84 L.Ed. 888 (1940). See also Zegura v. United States, 5th Cir. 1939, 104 F.2d 34.

Appellant argues that denying his right to proceed by the motions involved here completely prevents his recovery of the illegally-seized properties. Such a result would admittedly be contrary to the Supreme Court’s express pronouncement in Coin and Currency. We, however, envision no such result from our decision here.

The government concedes, and we agree, that appellant has a remedy against the government for the return of his property under the Tucker Act, 28 U.S.C.A. § 1346(a) (2). This statute provides that the district court has original jurisdiction, concurrent with the Court of Claims, of:

Any . . . civil action or claim against the United States, not exceeding $10,000 in amount,3 founded either upon the Constitution, or any Act [1357]*1357of Congress, or any regulation of any executive department, or upon any express or implied contract with the United States, or for liquidated damages in cases not sounding in tort.

In a suit for recovery of forfeited property allegedly seized in violation of claimant’s due process rights, Judge Bonsai, in a well-reasoned opinion, stated:

The language of § 1346(a) (2) would appear to encompass the plaintiff’s claim against the United States which is founded on the seizure and forfeiture of her .automobile pursuant to 49 U.S.C. § 782, 19 U.S.C. § 1607 and 19 U.S.C. § 1609

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457 F.2d 1353, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-one-1961-red-chevrolet-impala-sedan-serial-no-ca5-1972.