United States v. One 1969 Chevrolet Pickup Truck, Identification No. CE149A318676

321 F. Supp. 916, 1971 U.S. Dist. LEXIS 14697
CourtDistrict Court, W.D. Tennessee
DecidedFebruary 9, 1971
DocketCiv. A. No. 2004
StatusPublished
Cited by2 cases

This text of 321 F. Supp. 916 (United States v. One 1969 Chevrolet Pickup Truck, Identification No. CE149A318676) is published on Counsel Stack Legal Research, covering District Court, W.D. Tennessee 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 1969 Chevrolet Pickup Truck, Identification No. CE149A318676, 321 F. Supp. 916, 1971 U.S. Dist. LEXIS 14697 (W.D. Tenn. 1971).

Opinion

OPINION

WELLFORD, District Judge.

The United States of America has herein instituted libel action in the United States District Court for the Eastern Division of Tennessee against One 1969 Chevrolet Pickup Truck, Identification No. CE149A318676, claimed by General Motors Acceptance Corporation. The described vehicle was seized and its forfeiture is sought pursuant to Title 26, United States Code § 7301 and 7302, while being used in violation of the Internal Revenue Laws of the United States. That the vehicle was being used by the owner Sarah Jo Cromwell, in violation of the Internal Revenue Laws of the United States, is not in dispute in this proceeding. It was seized in Hardin County, Tennessee, on February 19, 1970, and at that time said vehicle contained a 110 gallon flakestand and condenser equipped and intended to be used in the making of distilled spirits, in violation of said alcohol tax laws.

The claimant-petitioner, General Motors Acceptance Corporation, has an interest in said vehicle as a result of a purchase money contract executed at the time of sale of the vehicle on November 30, 1968, and seeks remission of the forfeiture to the extent of its interest in accordance with 18 U.S.C. 3617. That section provides that the District Court shall not allow remission unless the claimant company proves (1) that it acquired its interest in good faith, (2) [918]*918that it had no reason to believe the vehicle would be used in violation of te liquor laws, and (3)

“if * * * the [claimant’s] interest * * * 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 laws of the United States or of any State relating to liquor * * * that, before such claimant acquired [its] interest, or such other person acquired his right under such contract or agreement, whichever occurred later, the claimant * * * 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 in which such other person acquired [her] 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 [for violating laws of the United States or of any State relating to liquor].”

There is no dispute in the record as to the petitioner’s compliance with the first two requirements set forth above. In this respect, the Court finds that the claimant, General Motors Acceptance Corporation, entered the purchase money contract regarding this vehicle in good faith and had no reason to believe the automobile would be used in violation of the liquor laws.

There was no evidence produced at the trial that Petitioner did, in fact, make any inquiries of the federal, state or local law enforcement agencies at the time of or prior to entering the financing contract, and so the sole issue remaining for determination by the Court is whether the petitioner-claimant sufficiently complied with subparagraph (b) (3) of § 3617 so as to be entitled to a remission of the forfeiture under the circumstances.

It is the contention of the United States that the statute must be interpreted literally and that a claimant who fails to make inquiry of one of the officers designated does so at his peril. On the other hand, General Motors Acceptance Corporation insists that it need not make inquiry of any law enforcement official unless there is good reason to suspect that the purchaser has a reputation or record for violating liquor laws.

A credit investigation of Sarah Jo Cromwell was made by the claimant-petitioner prior to its purchasing the installment contract. Such investigation apparently disclosed no facts which would reasonably cause any suspicion to arise as to her reputation, thus General Motors Acceptance Corporation claims that it accordingly made sufficient reasonable inquiry. To support this contention, petitioner relies heavily upon the reasoning espoused in United States v. One 1957 Chevrolet 2-door Sedan, 158 F.Supp. 212 (N.D., Ohio 1957), wherein remission under 18 U.S.C. 3617 was allowed after seizure of the vehicle by government agents. Judge John D. Martin (the former Chief Judge of the Sixth Circuit, who once sat as Judge in this Court) has held in United States v. One 1935 Ford Standard Coach Automobile, 13 F.Supp. 104 (W.D., Tenn.1935) that inquiry of law enforcement officials was required only when the automobile finance company had a reasonable suspicion of bootlegging activities on the part of a purchaser. The Court in 158 F. Supp. 212 cites not only Judge Martin’s opinion, but also that of Judge Learned Hand in 93 F.2d 469 (CA2 1937) in its holding that where there was neither a criminal record nor a widespread knowledge of a purchaser’s reputation, there was no requirement for a Cleveland, Ohio finance company to check with the Chief of Police, Sheriff or Alcohol Tax Unit Office.

No doubt only a reasonable inquiry need be made, and this Court feels that the requirements of investigation [919]*919under 18 U.S.C. 3617(b) (3) as a condition to remission should be liberally construed in favor of the claimant since it is a remedial measure intended to prevent drastic forfeiture in appropriate situations. See United States v. One 1936 Model Ford, 19 F.Supp. 470 (D.C. S.C.1937), affirmed 93 F.2d 771 (4 Cir. 1938), affirmed 305 U.S. 564, 59 S.Ct. 99, 83 L.Ed. 355, affirmed on rehearing, 307 U.S. 219, 59 S.Ct. 861, 83 L.Ed. 1249.

It is well settled that claimant-petitioner’s failure to make the inquiry prescribed in subparagraph (3) does not, of itself, defeat its claim to re-mission. Manufacturers Acceptance Corp. v. United States, 193 F.2d 622 (6 Cir. Tenn.1951); Universal Credit Co. v. United States, 91 F.2d 388 (6 Cir. 1937). Where subparagraph (3) is not complied with, the Court’s power to grant remission is conditional upon the absence of any adverse record or reputation on the part of a person having ownership rights in the vehicle forfeited, under the contract from which the claimant’s interest in the vehicle arises. Thus, if such a record or reputation required by the statute is not established, the claimant’s right to a remission may not be defeated merely because of his failure to make inquiry pursuant to sub-paragraph (3). United States v. One 1958 Ford Fairlane Coach, 207 F.Supp. 583 (E.D.Tenn., 1962). Universal Credit Co. v. United States, supra.

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321 F. Supp. 916, 1971 U.S. Dist. LEXIS 14697, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-one-1969-chevrolet-pickup-truck-identification-no-tnwd-1971.