United States v. Real Property in Section 9, Town 29 North

241 F.3d 796, 2001 U.S. App. LEXIS 2894, 2001 WL 197536
CourtCourt of Appeals for the Sixth Circuit
DecidedMarch 1, 2001
DocketNo. 98-2261
StatusPublished
Cited by34 cases

This text of 241 F.3d 796 (United States v. Real Property in Section 9, Town 29 North) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth 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. Real Property in Section 9, Town 29 North, 241 F.3d 796, 2001 U.S. App. LEXIS 2894, 2001 WL 197536 (6th Cir. 2001).

Opinion

OPINION

MERRITT, Circuit Judge.

This is an appeal from summary judgment for the government in a civil forfeiture action of real property under 21 U.S.C. § 881(a)(6) and (a)(7) relating to illegal drug activity. Because we find that intervening federal legislation, which raised the government’s burden of proof to prove forfeiture of the property, may affect the outcome of this case and that the new legislation is applicable to this case, we remand to the district court for further proceedings.

The government brought a civil forfeiture action against property in the possession of claimants, Daniel and Michael Ga-hagan and their mother, Agnes Riddle Gahagan, after Daniel and Michael pled guilty to federal marijuana and hashish charges.1 The original action identified five pieces of land in Otsego County, Michigan, that might be subject to forfeiture. After numerous cross-motions, the district court granted summary judgment to the government on two pieces of property (known as parcels C and D) and those are the only two parcels at issue on appeal. It also rejected Agnes Gahagan’s innocent owner defense and found that the mortgage she held on parcel D should not bar forfeiture.

One of the primary arguments raised by claimants below and on appeal concerns the unconstitutionality of the burden-shifting analysis found in the forfeiture statute in effect when the district court rendered its decision. 19 U.S.C. § 1615.2 Under the old statutory scheme, once the government made a showing of probable cause, the burden shifted to the claimant to prove by a higher standard of evidence — preponderance of the evidence — that forfeiture is not required. If the claimant had set forth evidence only equal to the government’s— that is, probable cause — the government prevailed and the property was lost. Claimants maintain that the lower burden of proof on the government coupled with [798]*798the heightened burden of proof on claimant violates the Due Process Clause.

Congress passed remedial legislation on April 25, 2000, one week before oral argument was heard in this case, that significantly alters the standards and procedures applicable to civil forfeiture proceedings. Civil Asset Forfeiture Reform Act of 2000, Pub.L. No. 106-185, 114 Stat. 202, 18 U.S.C. § 983 (2000). Of particular relevance to this appeal, the new legislation changes and raises the government’s burden of proof by requiring the government “to establish, by a preponderance of the evidence, that the property is subject to forfeiture.” 114 Stat. *205-06. The statute states that it applies, with one exception not relevant here, to forfeiture proceedings “commenced on or after the date that is 120 days after the date of enactment of this Act,” which was August 23, 2000. Id. *225.

No definition is given of what it means for forfeiture to be “commenced.” Does this mean seizure of the property, the filing of a document in court, a finding of probable cause, the establishment of a preponderance of the evidence or some other act by the government or the court? Because forfeiture does not occur until a court acts, does it mean that forfeiture is not “commenced” until the court finally allows the forfeiture to take place — at which time the actual forfeiture “commences?” The new act says it is applicable to “any forfeiture proceeding commenced” 120 days after enactment. Does an appellate proceeding qualify?

Because the new legislation bears directly on a primary issue in the case, the panel directed the parties to file letter briefs on the question of whether it should apply to pending cases. The government, here represented by the United States Attorney’s Office in Bay City, Michigan, responded in its brief that, under the plain language of the statute, the legislation is not to be applied to pending cases. The claimants stated in their brief that they had received information from the United States Attorney’s Office in Denver, Colorado, which is not the United States Attorney’s Office in charge of this case, that the position of the United States Department of Justice is that the courts could proceed on a case-by-case basis concerning applicability of the legislation to pending cases.

The Supreme Court has stated that “even where the intervening law does not explicitly recite that it is to be applied to pending cases, it is to be given recognition and effect.” Bradley v. School Bd. of City of Richmond, 416 U.S. 696, 714, 94 S.Ct. 2006, 40 L.Ed.2d 476 (1974). Accord Landgraf v. USI Film Products, 511 U.S. 244, 273, 114 S.Ct. 1483, 128 L.Ed.2d 229 (1994) (“Even absent specific legislative authorization, application of new statutes passed after the events in the suit is unquestionably proper in many situations.”). Because the statute does not explicitly state whether it applies to pending cases, the case law on the subject controls.

We are guided by Landgraf v. USI Film Products, 511 U.S. 244, 114 S.Ct. 1483 (1994). Landgraf reconciled two different lines of cases. One line of cases holds that a court must apply the law in effect at the time it renders its decision. See, e.g., Bradley, 416 U.S. at 711, 94 S.Ct. 2006 (“[A] court is to apply the law in effect at the time it renders its decision, unless doing so would result in manifest injustice or there is statutory direction or legislative history to the contrary.”) The other line of cases holds that retroactivity of new statutes is not favored under the law. See Bowen v. Georgetown University Hosp., 488 U.S. 204, 208, 109 S.Ct. 468, 102 L.Ed.2d 493 (1988).

Landgraf explained that the two lines of cases were not inconsistent. Landgraf directed that a court should not apply a new statute to conduct arising before passage of the legislation if a “new provision attaches new legal consequences to events completed before enactment,” 511 U.S. at 269-70, 114 S.Ct. 1483, or “would impair rights a party possessed when he acted, [799]*799increase a party’s liability for past conduct, or impose new duties with respect to transactions already completed.” Id. at 280, 114 S.Ct. 1483. The Court explained that the primary reason for the rule against retroactivity is grounded in fairness, which dictates that individuals have an opportunity to know the law and to conform their conduct accordingly.

Generally, when a statute is addressed to remedies or procedures and does not alter substantive rights, it will be applied to pending cases. Landgraf, 511 U.S. at 275, 114 S.Ct. 1483; United States v. Certain Funds Contained in Account Nos. 600-306211-006, 600-306211-011 and 600-306211-014, 96 F.3d 20

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241 F.3d 796, 2001 U.S. App. LEXIS 2894, 2001 WL 197536, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-real-property-in-section-9-town-29-north-ca6-2001.