United States v. Premises Known as 318 South Third Street

988 F.2d 822
CourtCourt of Appeals for the Eighth Circuit
DecidedMarch 8, 1993
DocketNo. 92-1957
StatusPublished
Cited by10 cases

This text of 988 F.2d 822 (United States v. Premises Known as 318 South Third Street) 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. Premises Known as 318 South Third Street, 988 F.2d 822 (8th Cir. 1993).

Opinion

BEAM, Circuit Judge.

This is the appeal of an in rem forfeiture under 18 U.S.C. § 1955, which authorizes forfeiture of property used in any gambling operation. The Minneapolis On Leong Chinese Merchants Association, (“Association”), the real party in interest, raises numerous contentions challenging the validity of the forfeiture proceedings. We affirm.

I. BACKGROUND

On August 29, 1990, the government brought a civil forfeiture action against the real property known as 318 South Third Street, Minneapolis, Minnesota, (“real property”), pursuant to 18 U.S.C. § 1955(d).1 The real property consisted of a two-story building and a parking lot jointly identified as the northwesterly 22 feet of the southwesterly 85 feet of Lot 4 and the northeasterly 70 feet of Lots 4 and 5, Block 49, Town of Minneapolis. The Association was the fee owner of this real property. At the time of the seizure, the second floor of the building served as headquarters for the Association, and the first floor was leased to a third party not involved in this suit.

The government alleged that between 1984 and 1988 the real property was used to house an illegal gambling business.2 This allegation was based on information discovered during an FBI investigation of gambling at the property. The FBI investigation consisted of interviews with members of the Association, as well as an examination of local police department records. The local police records consisted largely of reports generated during the 1984 investigation of the murder of Hugh Wong, an Association member, and contained information about a 1984 gambling operation run by Jimmy Liu and Kevin Tam at the building. Liu and Tam paid the Association $400.00 per month rent for the use of the second floor.

The evidence revealed that gambling occurred at the real property during two other time periods. In 1985 or 1986, Carl Wong and Tom Kong, both Association members, started a gambling operation. Wong and Kong paid the Association $100 per week rent for the second floor. From late 1987 through spring of 1988, Man Wu ran a gambling operation at the real property, under a similar rental arrangement. Before the district court, and on appeal, the [824]*824Association did not contest that illegal gambling occurred at the real property but argued that this gambling did not rise to the level of a “gambling business” as defined in the. statute. All parties agree that gambling at the real property ceased in April 1988, after an FBI raid on the On Leong Chinese Merchants Association building in Chicago.

On August 29, 1990, the United States Marshal seized the real property for forfeiture. On October 14, 1991, the building was destroyed by fire. After discovery, both the Association and the government moved for summary judgment. On February 28, 1992, the district court granted the government’s motion for summary judgment, and ordered the forfeiture of the real property. The Association appeals that order.

II. DISCUSSION

The Association raises numerous arguments for reversal. They contend that real property is not forfeitable under 18 U.S.C. § 1955; that there were material facts in dispute and therefore summary judgment was inappropriate; that proof of probable cause for forfeiture was not adequate; and that considerations of proportionality and constitutional limitations should prevent a forfeiture in this case.

A. Forfeiture of Real Property

In this Circuit, it is well settled that real property is subject to forfeiture under 18 U.S.C. § 1955. In 1990, sitting en banc, we reviewed precisely this question. See United States v. South Half of Lot 7 and Lot 8, Block 14, 910 F.2d 488 (8th Cir.1990) (en banc), cert. denied, — U.S. -, 111 S.Ct. 1389, 113 L.Ed.2d 445 (1991). The court concluded:

The tasks of resolving the dispute over the scope of section 1955(d)’s forfeiture provision begins with the language of the statute itself. When used without qualification, the word “property” in-eludes both real and personal property within its sweep. Indeed, Congress’s use of the word “any” to describe property undercuts a narrower construction. The language of the forfeiture provision is plain and clear: real property used in illegal gambling operations may be seized and forfeited.

Id. at 489 (citations omitted); accord, United States v. On Leong Chinese Merchant’s Ass’n Bldg., 918 F.2d 1289, 1297 (7th Cir.1990), cert. denied, — U.S. -, 112 S.Ct. 52, 116 L.Ed.2d 29 (1991); United States v. Premises and Real Property at 614 Portland Ave., 846 F.2d 166, 167 (2d Cir.1988) (per curium). We are bound by this decision and the Association’s suggestion that a panel of the court might overrule an en banc holding is simply incorrect.

B. Summary Judgment

When reviewing a district court’s grant of summary judgment, we apply the same standard as the district court and view the evidence in the light most favorable to the party against whom judgment was granted. Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 587, 106 S.Ct. 1348, 1356, 89 L.Ed.2d 538 (1986); Woodsmith Pub. Co. v. Meredith Corp., 904 F.2d 1244, 1247 (8th Cir.1990). We must construe the facts so as to give the non-moving party the benefit of all reasonable inferences. United States v. One Parcel of Property Located at 508 Depot Street, 964 F.2d 814, 816 (8th Cir.1992), cert. granted, — U.S. —, 113 S.Ct. 1036, 122 L.Ed.2d 347 (1993).3 Summary judgment is appropriate only if no genuine issue of material fact exists, and the moving party is entitled to judgment as a matter of law. Id.

In the context of a civil forfeiture proceeding, the government carries the initial burden of establishing probable cause. This burden of proof is greater than mere suspicion, but less than prima facie proof. United States v. Premises Known as 3639-2nd St., N.E., 869 F.2d 1093, 1095 [825]*825(8th Cir. 1989). Once the government meets this threshold, the burden shifts to the party opposing forfeiture to prove by a preponderance of the evidence that the property is not subject to forfeiture. Id.

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988 F.2d 822, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-premises-known-as-318-south-third-street-ca8-1993.