United States v. One 1963 Oldsmobile

245 F. Supp. 847
CourtDistrict Court, W.D. Oklahoma
DecidedSeptember 21, 1965
DocketCiv. No. 65-36
StatusPublished

This text of 245 F. Supp. 847 (United States v. One 1963 Oldsmobile) is published on Counsel Stack Legal Research, covering District Court, W.D. Oklahoma 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 1963 Oldsmobile, 245 F. Supp. 847 (W.D. Okla. 1965).

Opinion

DAUGHERTY, District Judge.

This matter involves Libel Proceedings by the United States against one 1963 Oldsmobile, Serial No. 639K01027, to forfeit the automobile for its use in alleged violations of the Internal Revenue liquor laws. The Libel alleges that the automobile was used in violation of Title 26, United States Code, Sections 5205 (a) (2), 5601(a) (12), 5604(a) (1), 7206(4), 7301 and 7302. The Bostick Brothers Motor Company obtained leave of Court to intervene, alleging that it is the holder of a note and security agreement executed by Dorothy Mae Bradford and Leon Shaw regarding the automobile, praying for denial of forfeiture, or if forfeiture be decreed, for remission of forfeiture to the extent of its interest in the automobile.

The parties stipulated substantially as follows, as shown by the pre-trial order filed herein:

On December 12, 1964, Dorothy Mae Bradford and Leon Shaw signed a promissory note, financing statement, security agreement and installment sales con[849]*849tract for the sale of the above 1963 Oldsmobile, its tools and appurtenances. These documents were filed for record on December 15, 1964, by Bostick Brothers Motor Company, intervenor herein, and were in favor of said intervenor in the amount of $3,744.00. On January 6, 1965, in Oklahoma City, Oklahoma, a Federal Alcohol and Tobacco Tax Investigator and two Oklahoma City Police Department Detectives, while in the performance of their official duties, seized the said 1963 Oldsmobile, its tools and appurtenances, while being used in the transportation of two gallons of distilled spirits, the immediate containers thereof not being stamped to denote the payment of the tax thereon as required by the Internal Revenue Code. Leon Shaw did have a record for violation of the Internal Revenue Liquor laws of the United States prior to December 12, 1964, and that a “reputation” card for Dorothy Mae Bradford was on file with the local Alcohol and Tobacco Tax Unit of the Internal Revenue Service prior to December 12, 1964. Bostick Brothers Motor Company, its agents or employees did not at any time make inquiry as to the record and reputation of Leon Shaw or Dorothy Mae Bradford as required by Title 18, United States Code, Section 3617(b) (3).

The case was tried to the Court, both parties having agreed to trial without a jury.

By virtue of the Stipulation of Facts recited above and the evidence received herein, the Court finds that the 1963 Oldsmobile in question was used to transport two gallons of non-tax-paid distilled spirits in violation of Title 26, United States Code, Section 5604(a) (1) and pursuant to Title 26, United States Code, Section 7301, said 1963 Oldsmobile, its tools and appurtenances, are subject to be forfeited to the United States.

The petition in intervention of Bos-tick Brothers Motor Company raises the question of remission or mitigation of forfeiture. Remission or mitigation of forfeiture.is governed and controlled by Section 3617 of Title 18 of the United States Code. That statute gives to the Courts, exclusive jurisdiction to remit or mitigate forfeiture, provided, the conditions precedent set forth in sub-paragraph (b) are met. That section reads in part as follows:

“If it appears that the interest asserted by the claimant arises out of or is in any way subject to any contract or agreement under which any person having a record or reputation for violating the laws of the United States — has a right with respect to such vehicle, that before such claimant acquired his right under such contract or agreement, the claimant, was informed in answer to his inquiry, that the headquarters of the Sheriff, Chief of Police, Federal Internal Revenue Officer engaged in the enforcement of the liquor laws, or other principal local or federal law enforcement officer of the locality in which such other person acquired his right under such contract or agreement, of the locality in which such other person then resided, and of each locality in which the claimant has made any other inquiry as to the character or financial standing of such other person, that such other person had no such record or reputation.”

Since it is admitted by the Stipulation herein that no inquiry was made by intervenor of any of the designated law enforcement officers as to the record or reputation of either Dorothy Mae Bradford or Leon Shaw, the Court finds that the intervenor’s prayer for relief by remission of forfeiture, must be denied.

Claimant intervenor asserts that the Court should look behind the reputation card on file with the local Alcohol and Tobacco Tax office to determine whether or not Dorothy Mae Bradford as a purchaser of this automobile actually had a reputation as contemplated by Title 18 United States Code, Section 3617(b) (3). However, the law in the Tenth Circuit clearly reflects that the [850]*850Court may not look behind the reputation card unless inquiry has been made as prescribed by the statute. In United States v. Chieftain Pontiac Company, 10 Cir., 218 F.2d 115, the Court states:

“As used in the statute, the words ‘record and reputation’ are words of different meaning and inquiry as to both must be made at the designated law enforcement offices. Inquiry as to only one will not authorize remission. * * * if [claimant] makes no inquiry as required by statute, he is bound by whatever answer would have been given by any of the designated law enforcement officers had inquiry been made.”

See also Interstate Securities Company v. United States, 10 Cir., 151 F.2d 224; United States v. Interstate Securities Company, 10 Cir., 218 F.2d 243; and United States v. One 1957 Ford Ran-chero, 10 Cir., 265 F.2d 21.

A Federal Alcohol and Tobacco Tax Investigator testified that had intervenor inquired as to the record and the reputation of Dorothy Mae Bradford and Leon Shaw prior to the sale of the automobile on December 12, 1964, his office would have informed intervenor that Leon Shaw had a record for violating the liquor laws and that Dorothy Mae Bradford had a reputation for violating the liquor laws as evidenced by her reputation card on file in his office.

Since no inquiry was made by inter-venor prior to the date of sale of the automobile in question, the Court finds under the above cases that it cannot look behind the reputation card to determine the reasons for placing the reputation card of Dorothy Mae Bradford on file.

However, in any event, from the evidence presented to the Court the Court finds that Dorothy Mae Bradford did in fact have a reputation with the local Federal Alcohol and Tobacco Tax Unit prior to December 12, 1962, of being involved with illegal liquor activities.

Claimant intervenor also asserts that it was not required to inquire as to the record or reputation of Leon Shaw since he signed the note, financing statement, security agreement and installment sales contract only as an accommodation party and title to the automobile was not issued to him but was to be issued to Dorothy Mae Bradford. Apparently, the title has never been actually issued by intervenor.

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245 F. Supp. 847, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-one-1963-oldsmobile-okwd-1965.