United States v. Premises & Real Property with All Buildings, Appurtenances, & Improvements, Located at 509 Raspberry Patch Drive

116 F. Supp. 3d 190, 2015 U.S. Dist. LEXIS 99054, 2015 WL 4590788
CourtDistrict Court, W.D. New York
DecidedJuly 29, 2015
DocketNo. 6:14-CV-6673 EAW
StatusPublished
Cited by5 cases

This text of 116 F. Supp. 3d 190 (United States v. Premises & Real Property with All Buildings, Appurtenances, & Improvements, Located at 509 Raspberry Patch Drive) is published on Counsel Stack Legal Research, covering District Court, W.D. New York 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 & Real Property with All Buildings, Appurtenances, & Improvements, Located at 509 Raspberry Patch Drive, 116 F. Supp. 3d 190, 2015 U.S. Dist. LEXIS 99054, 2015 WL 4590788 (W.D.N.Y. 2015).

Opinion

DECISION AND ORDER

ELIZABETH A. WOLFORD, District Judge.

INTRODUCTION

The United States of America brought this action in rem for the forfeiture of certain premises and real property pursuant to 18 U.S.C. § 981(a)(1)(C); (Dkt. 1). Presently before the Court is the Government’s motion to strike the claim of Mark K. Saile (“claimant”), pursuant to Rule G(8)(c) of the Supplemental Rules for Admiralty or Marine Claims and Asset Forfeiture Actions (the “Supplemental Rules”). (Dkt. 15). Because claimant does not have statutory standing to pursue his claim, the Government’s motion to strike is granted.

PROCEDURAL HISTORY

The Government filed its verified complaint on December 3, 2014, seeking forfeiture of real property located at 509 Raspberry Patch Drive (hereinafter “the property”). (Dkt. 1 at ¶3). The complaint alleges that the property was purchased with money illegally obtained by claimant and was subject to forfeiture pursuant to 18 U.S.C. § 981(a)(1)(C). (Id. at ¶¶4-19). On December 15, 2014, the Government moved for a post-complaint restraining order (Dkt. 4), which the undersigned granted on December 29, 2014 (Dkt. 7). On January 15, 2015, the Court granted a request by the Federal Public Defender’s Office for the Western District of New York, to represent claimant in asserting a claim to the property.1 (Dkt. 10). Claimant filed a notice of claim on January 16, 2015. (Dkt. 11). On February 5, 2015, the parties stipulated to ex[192]*192tend claimant’s time to file an answer to the complaint until April 6, 2015. (Dkt. 12 & 13).

On March 26, 2015, the Court received a letter from Anne M. Burger, Assistant Federal Public Defender, reporting that claimant was recently deceased.2 (Dkt. 15-1 at 2). Thereafter, on May 18, 2015, the Government wrote a letter to Nora Saile, claimant’s wife, informing her that as the executor of claimant’s estate, she had the option to “step into [claimant’s] shoes” and continue pursuing the claim to the property. (Dkt. 15-2 at 2). The Government also directed Ms. Saile to file documentation with the Court indicating her intention to act as a claimant no later than June 8, 2015. (Id,). The letter stated that if nothing was filed by that date, the Government would continue toward forfeiture of the property. (Id.).

On or about May 28, 2015, Ms. Saile contacted the United States Attorney’s Office and spoke with paralegal Michelle McCreedy. (Dkt. 15 at ¶ 12). Ms. Saile stated that she would not be pursuing any claim to the property. (Id.).

On June 9, 2015, the Government filed the instant motion.to strike (Dkt. 15), copies of which were sent to Nora Saile (id. at 17). The Court set a scheduling order for the filing of any response by June 29, 2015, and a copy of the order was sent to Ms. Saile. (Dkt. 16). No response has been filed to date, and the time to answer has not been further extended by the Court or by stipulation of the parties.

DISCUSSION

The Civil Asset Forfeiture Reform Act of 2000 (“CAFRA”), 18 U.S.C. § 983, governs all in rem civil forfeiture proceedings commenced on or after August 23, 2000. Centeno v. United States, No. 05 Civ. 8794(RMB)(GWG), 2006 WL 2382529, at *2-3, 2006 U.S. Dist. LEXIS 57393, at *7 (S.D.N.Y. Aug. 17, 2006). A judicial forfeiture proceeding is an action in rem and the Supplemental Rules apply to actions in rem.,, See Fed.R.Civ.P., Supp. Rule A(1)(B); United States v. U.S. Currency in the Amount of $2,857.00, 754 F.2d 208, 212 (7th Cir.1985).

Supplemental Rule G(5)(a)(i) requires that “[a] person who asserts an interest in the defendant property may contest the forfeiture by filing a claim in the court where the action is pending.” Fed.R.Civ.P., Supp. Rule G(5)(a)(i).3 “In order to contest a governmental' forfeiture action, claimants must have both standing under the statute or statutes governing their claims and standing under Article III of the Constitution as required for any action brought in federal court.” United States v. Cambio Exacto, S.A., 166 F.3d 522, 526 (2d Cir.1999). As further explained by one court:

[t]o pursue a claim, the claimant must demonstrate, in addition to the usual requirement of establishing Article III standing, see Clapper v. Amnesty Int’l USA, — U.S. —, 133 S.Ct. 1138, 1146, 185 L.Ed.2d 264 (2013), compliance with “the jurisdictional procedural requirements” set forth in Supplemental [193]*193Rule G(5). United States v. $100,348.00 in U.S. Currency, 354 F.3d 1110, 1126 (9th Cir.2004). Many courts refer to the latter as “statutory standing” and have held that it is established through compliance with Rule G.

United States v. Real Prop. Located at 17 Coon Creek Rd., 787 F.3d 968, 973-74 (9th Cir.2015); see also United States v. 4492 S. Livonia Rd., 889 F.2d 1258, 1262 (2d Cir.1989) (distinguishing between “Article III standing, which requires the claimant to demonstrate a sufficient interest in the property to create a ‘case or controversy in the constitutional sense,” and “statutory-standing, which requires the claimant to comply with certain procedural requirements....”).

A claimant bears -the burden of establishing standing. Mercado v. U.S. Customs Svc., 873 F.2d 641, 644 (2d Cir.1989). If the claimant fails to comply with the procedural requirements of filing a claim or lacks standing, the government may move to strike the claim or answer. See Fed.R.Civ.P„ Supp. Rule G(8)(c)(i). “While lack of statutory standing can be excused at the sound discretion of the trial judge, Article III standing is a prerequisite for a court to attain subject matter jurisdiction over a matter.” United States v. $138,381.00 in U.S. Currency, 240 F.Supp.2d 220, 227 (E.D.N.Y.2003) (citing 4492 S. Livonia Rd., 889 F.2d at 1262).

Strict compliance with the .Supplemental Rules is generally required, United States v. Amiel, 995 F.2d 367, 371 (2d Cir.1993), and a claimant’s failure to comply with the procedural filing requirements may result in a loss of standing to contest a claim, see Cambio Exacto, S.A., 166 F.3d at 526 (claimant who fails to meet specified time deadlines in Supplemental Rules lacks statutory standing); United States v. $27,601.00 U.S. Currency, 800 F.Supp.2d 465, 467 (W.D.N.Y.2011) (“Where a claimant fails to comply.with the procedural requirements of the Supplemental Rules, his claim may be stricken for lack of statutory standing.”); United States v. 479 Tamarind Drive, No. 98 Civ.

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116 F. Supp. 3d 190, 2015 U.S. Dist. LEXIS 99054, 2015 WL 4590788, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-premises-real-property-with-all-buildings-nywd-2015.