United States v. One 1989 Jeep Wagoneer, V.I.N. 1J4GS5874KP105300

976 F.2d 1172, 1992 WL 266944
CourtCourt of Appeals for the Eighth Circuit
DecidedOctober 9, 1992
DocketNo. 91-2764
StatusPublished
Cited by3 cases

This text of 976 F.2d 1172 (United States v. One 1989 Jeep Wagoneer, V.I.N. 1J4GS5874KP105300) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth 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 1989 Jeep Wagoneer, V.I.N. 1J4GS5874KP105300, 976 F.2d 1172, 1992 WL 266944 (8th Cir. 1992).

Opinion

JOHN R. GIBSON, Circuit Judge.

Ponderosa of Blue Earth County, Inc., appeals from an order granting summary judgment in a forfeiture action against a Jeep Wagoneer it owned. The district court held that Ponderosa had failed to establish by a preponderance of the evidence that it was an innocent owner of the Jeep within the meaning of 21 U.S.C. § 881(a)(4)(C) (West Supp.1992), after the United States had established probable cause for the forfeiture, and accordingly, summary judgment was appropriate. United States v. One 1989 Jeep Wagoneer, No. 3-90-82 (D.Minn. May 29, 1991). On appeal, Ponderosa argues that its controlling owners had no knowledge that the vehicle was in any way connected to drug use, that they did not consent to its use in criminal activity, and that they took reasonable steps to monitor the activities of the employee who used the car. We reverse the district court’s judgment and remand for further proceedings in conformity with this opinion.

Mark Weimart is the son of the deceased majority owner of Ponderosa, Gerald Wei-mart. Lucille Weimart, Mark’s mother, is now the majority owner, and Mark and his brother, Steve, are minority shareholders. Mark worked at Kato Sanitation, a separate corporation also owned by the Wei-marts, from 1984 to 1989. Mark Weimart became addicted to drugs in 1983 or 1984, and received in-patient treatment for drug [1174]*1174addiction in 1984, 1986, 1987, and again in 1988. The businesses did not discipline Mark Weimart for drug use until his arrest. After living at a halfway house and working elsewhere, Mark Weimart resumed employment with Kato in late 1989 or early 1990. His attendance at Alcoholics Anonymous meetings was monitored by others in the business, according to Steve Weimart. From 1985 through 1989, Mark Weimart drove a vehicle owned by Ponde-rosa for both business and personal use. When Ponderosa purchased the Jeep Wago-neer on February 1, 1989, Mark Weimart selected it as his company car. Mark Wei-mart also had access to a personal family vehicle in addition to the jeep. In 1991, Mark Weimart pleaded guilty to distribution of cocaine in violation of 21 U.S.C. § 841(a)(1) (1988). He admitted in a deposition that he used the Jeep Wagoneer to facilitate a drug transaction by transporting cocaine in it.

The government brought this forfeiture action against the Jeep. The district court entered summary judgment for the government, stating that Ponderosa “failed to establish by a preponderance of the evidence that it is an innocent owner within the meaning of 21 U.S.C. § 881(a)(4)(C).” Slip op. at 1.

Ponderosa does not contest that the Jeep Wagoneer was used to facilitate the transportation and sale of a controlled substance in violation of 21 U.S.C. § 881(a)(4) (nor, under the record before us, could it successfully do so). Therefore, Ponderosa bears the burden of proving a defense by a preponderance of the evidence. United States v. 3639 2nd St., N.E., 869 F.2d 1093, 1095 (8th Cir.1989); One Blue 1977 AMC Jeep CJ-5 v. United States, 783 F.2d 759, 761 (8th Cir.1986).

Ponderosa’s only defense is that it was an innocent owner under 21 U.S.C. § 881(a)(4)(C). The statute enumerates three bases for this defense: knowledge, consent, or willful blindness of the owner.1 The thrust of the government’s argument is that: (1) Ponderosa does not dispute that it knew of Weimart’s drug habit, (2) it made no showing that it made any attempt to prevent Mark Weimart from using the Jeep Wagoneer for drug transactions, and (3) Ponderosa therefore cannot prove absence of willful blindness.

The government’s argument clearly has its genesis in the constitutional limits established in Calero-Toledo v. Pearson Yacht Leasing Co., 416 U.S. 663, 94 S.Ct. 2080, 40 L.Ed.2d 452 (1974), which has nothing to do with the “willful blindness” language at issue here. In Calero-Toledo, the Court stated in dicta that a constitutional defense to forfeiture might be available to “an owner who proved not only that he was uninvolved in and unaware of the wrongful activity, but also that he had done all that reasonably could be expected to prevent the proscribed use of his property; for, in that circumstance, it would be difficult to conclude that forfeiture served legitimate purposes and was not unduly oppressive.” Id. at 689-90, 94 S.Ct. at 2095 (footnote omitted). This circuit relied on Calero-Toledo to establish the limits of the constitutional innocent owner defense. See United States v. One 1976 Cessna Model 210L Aircraft, 890 F.2d 77, 80-82 (8th Cir.1989); United States v. One 1973 Buick Riviera Automobile, 560 F.2d 897, 900-01 (8th Cir.1977).

In 1988, Congress amended the drug forfeiture statute, 21 U.S.C. § 881, to extend the “innocent owner” defense to owners of [1175]*1175aircraft, vehicles, and vessels.2 The relevant section now provides:

No conveyance shall be forfeited under this paragraph to the extent of an interest of an owner, by reason of any act or omission established by that owner to have been committed or omitted without the knowledge, consent, or willful blindness of the owner.

21 U.S.C. § 881(a)(4)(C) (emphasis added). This statutory language, not the Calero-Toledo constitutional doctrine, is at issue in this case.

The statute does not define willful blindness. The government in its brief has cited no cases that deal with the willful blindness language. The government argues that in One 1976 Cessna Model 210L Aircraft, 890 F.2d at 80-82, this court required a reasonable attempt by the claimant to prevent the property’s unlawful use to satisfy the absence-of-willful-blindness standard. But even a hasty reading of One Cessna reveals that it applies the Calero-Toledo standard and not section 881(a)(4)(C) and its willful blindness provision.

We have discussed “willful blindness” in other contexts. In Mattingly v. United States, 924 F.2d 785 (8th Cir.1991), a civil tax fraud case, we considered whether a willful blindness instruction could satisfy a statutory requirement of knowledge. We stated that willful blindness can be “a mechanism for inference [of knowledge], not ... a substitute for knowledge.” 924 F.2d at 791.

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