United States v. Twelve Thousand, Three Hundred Ninety Dollars ($12,390.00), Willie J. Dorsey, Jr., Idell Dorsey, and Laverne Howard

956 F.2d 801, 1992 U.S. App. LEXIS 1704, 1992 WL 20720
CourtCourt of Appeals for the Eighth Circuit
DecidedFebruary 10, 1992
Docket90-2071
StatusPublished
Cited by39 cases

This text of 956 F.2d 801 (United States v. Twelve Thousand, Three Hundred Ninety Dollars ($12,390.00), Willie J. Dorsey, Jr., Idell Dorsey, and Laverne Howard) 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. Twelve Thousand, Three Hundred Ninety Dollars ($12,390.00), Willie J. Dorsey, Jr., Idell Dorsey, and Laverne Howard, 956 F.2d 801, 1992 U.S. App. LEXIS 1704, 1992 WL 20720 (8th Cir. 1992).

Opinions

ARNOLD, Circuit Judge.

Claimants appeal from a decision by the District Court1 awarding $12,390.00, seized from their home during the execution of a search warrant, to the government. After surmounting an initial jurisdictional hurdle, we affirm.

I.

On October 10, 1986, local law-enforcement officers executed a search warrant at 3625 Aldine in the City of St. Louis. The warrant, based upon information gathered from a confidential informant and police surveillance, targeted drugs, drug paraphernalia, and money. Although no drugs or drug paraphernalia were found, the police seized five guns and $12,390.00 in currency, located at various points in the house.2 No arrests were made.

On October 15, 1986, Donald Walton, an agent with the Drug Enforcement Agency, learned of the search at 3625 Aldine through a separate confidential informant. This informant told Walton that the search produced approximately $12,000.00, at least some of which was the product of drug sales by an individual named Gary Miller. This informant also corroborated the details of the search as conducted by the police. Pursuant to 21 U.S.C. § 881, and after confirming this information with the St. Louis police, Walton “adopted” the seizure of the currency for the DEA on October 24, 1986, by taking possession of the currency and initiating administrative forfeiture proceedings.

After the administrative forfeiture proceedings had begun, the claimants filed a motion in a state court for the return of the property seized during the search. This motion was heard and granted by the state court on November 12, 1986. The government filed the present forfeiture action on April 15, 1987. Three people who lived in the house, Willie J. Dorsey, Jr., Idell Dorsey, and Laverne Howard, claimed that the money found in the house belonged to them. Determining that there was probable cause to find that the money was connected to drug transactions, however, the District Court ordered the money forfeited to the government. The Court took this action after hearing testimony offered by claimants to try to show the money had nothing to do with drugs and belonged to them. The Court did not believe this testimony. This appeal followed.

II.

As a preliminary matter, the government asserts that we lack jurisdiction to hear this appeal because the res which was the subject of the action is no longer within the jurisdiction of the District Court. After receiving the judgment of forfeiture from the District Court, the government immediately placed a portion of the money in its Asset Forfeiture Fund and distributed the remainder to the St. Louis Police Department pursuant to an “Equitable Sharing Agreement.” This action, the government claims, divests us of jurisdiction to hear this matter. We disagree.

Traditional forfeiture law makes the res the principal focus of the action. The proceeding is said to be in rem as opposed to in personam. Under this analysis, if parties wish to challenge an adverse ruling through an appeal, they must act within ten days to stay the proceedings, pursuant to Federal Rule of Civil Procedure 62(a), or [804]*804take other action to preserve the res. If no action is taken by the end of this ten-day automatic stay, parties awarded the property are free to dispose of it as they wish. Once the res has been distributed, in the absence of fraud, mistake, or other improper action, the court loses its jurisdiction over the res. United States v. One Lear Jet Aircraft, Serial No. 35A-280, 836 F.2d 1571, 1573 (11th Cir.) (en banc), cert. denied, 487 U.S. 1204, 108 S.Ct. 2844, 101 L.Ed.2d 881 (1988).

[n recent years, courts have begun to abandon the rigid structures of this traditional analysis. Spurred by Judge Vance’s dissent in the One Lear Jet case, supra, the First, Second, and Fourth Circuits have all retained jurisdiction in cases like the one before us. See United States v. One Lot of $25,721.00 in Currency, 938 F.2d 1417 (1st Cir.1991); United States v. Aiello, 912 F.2d 4 (2d Cir.1990), cert. denied, — U.S. -, 111 S.Ct. 757, 112 L.Ed.2d 777 (1991); United States v. $95,945.18, 913 F.2d 1106 (4th Cir.1990).3 In finding the notions of the past inapplicable to modern-day forfeiture actions, these courts focus on the unfairness of allowing the government to invoke the jurisdiction of the court and then escape appellate review of a judgment in its favor. Aiello, 912 F.2d at 7; $95,945.18, 913 F.2d at 1109; One Lot of $25,721.00, 938 F.2d at 1419-20; One Lear Jet, 836 F.2d at 1579 (Vance, J., dissenting).

In deciding to retain jurisdiction in these cases, our sister Circuits have used two separate reasons to abandon the historical treatment of these appeals. The first line of reasoning is that by initiating an action in federal court, the government has subjected itself to the court’s in personam jurisdiction. Aiello, 912 F.2d at 6; $95,945.18, 913 F.2d at 1109; One Lot of $25,721.00, 938 F.2d at 1419. Under this analysis, despite the government’s distribution of the res, the Court retains jurisdiction over the parties throughout the case. The alternative approach focuses on the antiquated notions of admiralty law which the government seeks to apply in denying the appellants their opportunity to appeal. In the context of government-initiated forfeiture actions, “[ujnlike the typical case where the defendant ship stealthily absconds from port and leaves the plaintiff with no res from which to collect, here the defendant res is in the possession of the United States and thus in no danger of disappearing.” $95,945.18, 913 F.2d at 1109. Any sense of urgency in maintaining the res is not present in these situations. We find both of these theories to be persuasive, especially when the res is cash, which, unlike ships, is fungible.

The government’s citation to Bank of New Orleans & Trust Co. v. Marine Credit Corp., 583 F.2d 1063 (8th Cir.1978), is inapposite under the present facts. In that case, the Bank initiated a forfeiture action in a district court to satisfy several ship mortgages which it held. After following all the necessary procedures, a default judgment was awarded against the res, and the res (four vessels) was sold at auction. Marine Credit, the party claiming an interest in the defaulted items, did not enter the action until after the default judgment was awarded to the Bank, and then failed to file a motion to reclaim the res until after the res had been sold. In the present action, the forfeiture of suspected narcotics proceeds was initiated by the government, and the claimants, from whom the money was seized, challenged this action in court. Thus, unlike Marine Credit, the present claimants were involved in the action from its outset. As a result, the government was aware of the appellants’ claim before it distributed the money.

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956 F.2d 801, 1992 U.S. App. LEXIS 1704, 1992 WL 20720, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-twelve-thousand-three-hundred-ninety-dollars-ca8-1992.