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Opinion Summary: United States v. One (1) 1984 Nissan 300 ZX, Civ. A. No. 1:88-CV-1179-JOF (N.D. Ga. Mar. 28, 1989)

Factual and Procedural Background

On December 1, 1986, claimant Christopher M. Toliver was arrested by state authorities for misdemeanor possession of marijuana as he departed the scene of a drug purchase in the defendant vehicle (a 1984 Nissan 300ZX). The DEA seized the vehicle that same day on the ground it was used to facilitate the purchase of a controlled substance under 21 U.S.C. § 881(a)(4). On December 2, 1986, Toliver pleaded no contest in municipal court, was fined, and released; no other criminal charges were brought.

On December 15, 1986, the DEA notified claimant that administrative forfeiture proceedings would be initiated. Claimant filed a petition contesting forfeiture and a claim of ownership on January 12, 1987, and posted a $1,270 bond to stop administrative forfeiture; the DEA transmitted the matter to the U.S. Attorney, who was required to institute judicial forfeiture proceedings promptly. The government did not institute judicial proceedings for approximately eighteen months.

Claimant repeatedly attempted to secure return of the vehicle or prompt initiation of forfeiture proceedings; when government inaction continued, claimant filed a Rule 41(e) petition on November 25, 1987 to compel return of the vehicle. The court converted that petition to a complaint to compel civil forfeiture proceedings by order of April 26, 1988, directing the government to respond or file its own civil forfeiture complaint. On June 1, 1988, the government notified the court it intended to seek judicial forfeiture and filed the instant forfeiture complaint the same day (about eighteen months after seizure). Claimant filed a claim of ownership July 8, 1988, and an answer and counterclaim July 28, 1988, seeking return of the vehicle, damages for harm while in custody, return of the DEA bond, restitution of costs incurred during the delay, and court costs and attorney's fees.

Legal Issues Presented

  1. Whether plaintiff's (the United States') motion to strike claimant's February 7, 1989 supplemental brief should be granted under the court's local rules.
  2. Whether the government's motion for summary judgment should be granted—specifically, whether the government's approximately eighteen-month delay in filing the forfeiture complaint deprived claimant of his Fifth Amendment due process right to a prompt judicial hearing.
  3. Given the court's due process analysis, whether the government's forfeiture complaint should be dismissed and what relief to afford claimant (possession of the vehicle and any additional relief requested in claimant's counterclaim).

Arguments of the Parties

Plaintiff (United States)

  • Moved to strike claimant's February 7, 1989 supplemental brief as filed without leave of court in violation of Local Rule 220-1(b)(2).
  • Asserted (in opposing the due process challenge) that the delay in instituting forfeiture proceedings was attributable to the parties' efforts to reach a settlement.
  • Moved for summary judgment and requested certification of probable cause.

Claimant (Christopher M. Toliver)

  • Opposed summary judgment on the ground that the government's eighteen-month delay in filing forfeiture proceedings denied him a prompt hearing in violation of the Fifth Amendment due process clause.
  • Asserted and documented persistent efforts to secure return of the vehicle or prompt commencement of judicial proceedings: timely filed an administrative petition and claim with the DEA, posted bond, repeatedly contacted the U.S. Attorney's office, and ultimately filed a Rule 41(e) action to compel return.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
United States v. $8,850.00, 461 U.S. 555 (1983) Supreme Court decision adopting Barker v. Wingo balancing test to assess whether delay in initiating civil forfeiture proceedings violates Fifth Amendment due process; recognizes that an 18-month delay is "quite significant." The court treated this decision as controlling, applied the Barker factors (length of delay, reason for delay, claimant's assertion of right, prejudice), and concluded that—unlike the Supreme Court's factual outcome in $8,850.00—the balance of factors in this case favored the claimant.
Barker v. Wingo, 407 U.S. 514 (1972) Provides the four-factor balancing test for assessing whether delay violates constitutional rights: (1) length of delay; (2) reason for delay; (3) assertion of right; (4) prejudice. The court applied the Barker factors (as adopted in $8,850.00) to evaluate the government's eighteen-month delay and found the balance weighed heavily in claimant's favor.
United States v. M/V Christie Lee, 640 F. Supp. 667 (S.D. Fla. 1986) Authority for the proposition that once the government demonstrates a substantial connection between property and controlled substances, the burden shifts to the claimant to prove a defense to forfeiture; also cited regarding delay as a defense if due process violated. The court acknowledged this rule and, for the purposes of the order, assumed the government could demonstrate probable cause but nonetheless found the government's unjustified delay dispositive on due process grounds.
United States v. One 1978 Cadillac Sedan DeVille, 490 F. Supp. 725 (S.D.N.Y. 1980) Cited for the observation that an automobile is a wasting asset and that delay in forfeiture proceedings can be a defense when due process is violated. The court relied on the reasoning to emphasize that deprivation of an automobile for eighteen months imposes burdens beyond those of currency (e.g., ongoing ownership costs and asset depreciation), supporting the finding that the delay was significant.
Castleberry v. Alcohol, Tobacco and Firearms, 530 F.2d 672 (5th Cir. 1976) Authority for converting a Rule 41(e) petition into a complaint to compel civil forfeiture proceedings. The court cited Castleberry when it converted claimant's Rule 41(e) petition into a complaint to compel civil forfeiture proceedings and ordered the government to respond or file its own complaint.
United States v. One (1) Douglas A-26B Aircraft, 436 F. Supp. 1292 (S.D. Ga. 1977) Used as authority relevant to dismissal or relief where constitutional injury in forfeiture context is found. The court cited this decision among others in concluding dismissal of the forfeiture complaint was appropriate in view of claimant's constitutional injury and entitlement to possession of the vehicle.
U.S. v. $23,407.69 in U.S. Currency, 715 F.2d 162 Cited as supporting authority in the context of relief when constitutional injury (delay) occurred in forfeiture proceedings. The court referenced this authority as part of the body of precedent supporting dismissal of the forfeiture complaint and restoration of possession to the claimant.
One 1970 Ford Pick Up, 564 F.2d 864 Cited in the court's discussion of precedent where relief was granted following constitutional problems in forfeiture actions. Listed among cases supporting dismissal or relief for claimants who suffered constitutional injury due to governmental action or delay.
United States v. One Motor Yacht Named Mercury, 527 F.2d 1112 (1st Cir. 1975) Cited as authority in the context of relief where constitutional injury in forfeiture actions was recognized. Included by the court as one of several precedents supporting dismissal and restoration of possession where the claimant's constitutional rights were violated.
Sarkisian v. United States, 472 F.2d 468 (10th Cir. 1973) Cited as precedent addressing relief in forfeiture contexts involving constitutional concerns. Referenced among authorities the court relied upon in concluding dismissal and return of possession were appropriate remedies for the claimant's constitutional deprivation.
Robinson v. United States, 734 F.2d 735 (11th Cir. 1984) Cited (see also) in the list of cases addressing relief in forfeiture contexts. The court cited Robinson as supporting authority in finding dismissal appropriate and claimant entitled to possession in light of the constitutional injury.

Court's Reasoning and Analysis

The court proceeded in three discrete analytical steps.

1. Motion to Strike. The court found claimant's February 7, 1989 supplemental brief was filed without leave of court in violation of Local Rule 220-1(b)(2) and granted the government's motion to strike; the February 7 brief was ordered stricken from the record.

2. Summary Judgment and Due Process Analysis. The court assumed for purposes of the order that the government could demonstrate probable cause that the vehicle was subject to forfeiture (citing M/V Christie Lee for the burden-shifting principle). The central dispute was whether the government's roughly eighteen-month delay in filing a forfeiture complaint denied claimant a prompt hearing in violation of the Fifth Amendment. Relying on United States v. $8,850.00, which adopts the Barker v. Wingo four-factor balancing test, the court analyzed each Barker factor as follows:

  • Length of the delay: The court described the eighteen-month delay as substantial and "more significant" here than in $8,850.00 because an automobile is a wasting asset and claimant suffered ongoing ownership costs (loan payments, taxes, insurance) while deprived of use. The length of the delay was sufficient to trigger a reasonableness inquiry under due process.
  • Reason for the delay: The government attributed the delay to settlement negotiations. The court rejected that explanation, finding the government made no meaningful effort to resolve the matter (by settlement or by filing for judicial forfeiture) until the court's April 26, 1988 order; thus, there was no credible justification for the prolonged inaction.
  • Claimant's assertion of his right: The court found claimant vigorously asserted his right to a judicial hearing: he timely filed an administrative petition and claim with the DEA (which halted administrative forfeiture and required the U.S. Attorney to act promptly), posted bond, repeatedly attempted to get the government to act, and filed a Rule 41(e) petition that the court converted to a complaint.
  • Prejudice: The court noted the delay did not appear to have significantly hampered claimant's ability to present a defense on the merits. However, the court emphasized that prejudice is not a necessary condition for finding a due process violation when other Barker factors strongly favor the claimant and the government offers no credible justification for substantial delay.
After balancing the factors, the court concluded the balance "so strongly favors claimant" that the government's unjustified delay deprived claimant of his due process right to a prompt judicial hearing. Consequently, the government's motion for summary judgment was denied.

3. Relief and Case Status. Having found a constitutional injury (deprivation of a prompt hearing), the court concluded the proper remedy in this case is dismissal of the government's forfeiture complaint. The court cited multiple precedents that have supported dismissal or relief where constitutional problems in forfeiture proceedings were found and, based on those authorities, declared claimant entitled to possession of the vehicle. The court left open claimant's additional counterclaim remedies (e.g., damages, return of bond, restitution of costs, attorney's fees) and directed the parties to file cross-motions for summary judgment on the counterclaim within forty-five days.

Holding and Implications

The court's dispositive rulings are summarized below.

Holding:

  • The government's motion to strike claimant's February 7, 1989 supplemental brief is GRANTED; that brief is STRICKEN from the record.
  • The government's motion for summary judgment and request for certification of probable cause are DENIED.
  • The government's forfeiture complaint is hereby DISMISSED.
  • The court finds claimant is entitled to possession of the defendant vehicle and directs the parties to file cross-motions for summary judgment on claimant's counterclaim within forty-five (45) days of the order.

Implications:

Direct effects on the parties: the forfeiture complaint is dismissed and claimant is entitled to possession of the vehicle; the parties must proceed with cross-motions to resolve claimant's additional counterclaim relief (damages, return of bond, costs, attorney's fees). The court grounded its decision on existing precedent (notably United States v. $8,850.00 and the Barker balancing framework) and on the facts particular to this case (an eighteen-month unexplained delay, claimant's vigorous assertion of rights, and the special burdens of losing use of a wasting asset). The opinion does not announce a new legal rule beyond application of the cited precedents; it applies established law to the particular facts and grants relief to the claimant accordingly.

Disposition: SO ORDERED (Order entered March 28, 1989).

UNITED STATES of America, Plaintiff, v. ONE (1) 1984 NISSAN 300 ZX, GEORGIA LICENSE NO., VIN JN1HZ11452EX032749, Defendant.

ORDER

FORRESTER, District Judge.

This matter is before the court on plaintiff United States of America's motion for summary judgment and request for certificate of probable cause. Fed.R.Civ.P. 56; 28 U.S.C. § 2465, and motion to strike.

I. STATEMENT OF FACTS.

On December 1, 1986, claimant Christopher M. Toliver was arrested by state law enforcement authorities for misdemeanor possession of marijuana. The arrest was effected as claimant departed the scene of the drug purchase in the defendant vehicle. That same day the defendant vehicle was seized by agents of the Federal Drug Enforcement Administration (DEA) on the grounds that it was used to facilitate the purchase of a controlled substance in violation of 21 U.S.C. § 881(a)(4).

On December 2, 1986, claimant pleaded no contest in the Municipal Court of the City of Atlanta to the misdemeanor charge. He was fined $45 and released. No other criminal charges — federal or state — have been brought against claimant.

On December 15, 1986, claimant received notice from the DEA that administrative forfeiture proceedings would be initiated against the defendant vehicle. Pursuant to this notice, on January 12, 1987, claimant filed a petition contesting forfeiture and claim of ownership with the DEA and posted a $1270 bond to stop the administrative forfeiture proceedings. See 21 C.F.R. § 1316.76(b). Upon receipt of claimant's petition and other papers, the DEA transmitted the case to the United States Attorney for the Northern District of Georgia to initiate judicial forfeiture proceedings. See 21 C.F.R. § 1316.76(a). This was accomplished sometime in February of 1987.

From February through August, 1987, counsel for claimant visited, telephoned and corresponded with the United States Attorney's Office in an effort to expedite the filing of a complaint for civil forfeiture or to effect the return of the defendant vehicle. Counsel's efforts were to no avail. For this reason, on November 25, 1987 — approximately one year from the date of the seizure — claimant filed an action styled "In the Matter of One 1984 Nissan 300ZX," Civil Action No. 1:87-CV-2552-JOF. By this action, brought pursuant to Fed.R.Crim.P. 41(e), claimant petitioned the court to order the return of the defendant vehicle. The government declined to respond to claimant's petition.

"A person aggrieved by an unlawful search and seizure may move the district court for the district in which the property was seized for the return of the property on the ground that such person is entitled to lawful possession of the property which was illegally seized. . . . If the motion is granted the property shall be restored. . . ."

The court took up consideration of claimant's petition in April 1988. By order entered April 26, 1988, the court converted claimant's petition into a complaint to compel civil forfeiture proceedings, 711 F. Supp. 1568 (1988) at 1570 (citing Castleberry v. Alcohol, Tobacco and Firearms, 530 F.2d 672 (5th Cir. 1976)). The government was thereby ordered either to respond to claimant's complaint as converted or to file its own complaint for civil forfeiture. Id. On June 1, 1988, the government notified the court and claimant of its intent to seek judicial forfeiture of the defendant vehicle. On that same date, eighteen months from the date of seizure, the instant forfeiture action was filed. Claimant's complaint to compel civil forfeiture proceedings was therefore dismissed June 20, 1988. Claimant's claim of ownership was filed July 8, 1988. On July 28, 1988, claimant filed his answer and counterclaim. The government's motion for summary judgment was filed December 19, 1988 and is now ripe for review.

By his counterclaim, claimant seeks the return of the defendant vehicle, compensation for damages to the defendant vehicle while in the government's custody, return of the $1270 bond posted with the DEA, restitution of all costs associated with ownership of the vehicle during the period of unreasonable delay and court costs and attorney's fees.

II. CONCLUSIONS OF LAW.

A. Motion to Strike.

Plaintiff moves to strike claimant's February 7, 1989 supplemental brief in opposition to plaintiff's motion for summary judgment as having been filed without leave of court in violation of Local Rule 220-1(b)(2). Plaintiff's motion is GRANTED. Claimant's February 7, 1989 brief is hereby STRICKEN from the record.

B. Motion for Summary Judgment.

Once the government succeeds in demonstrating a substantial connection between seized property and a controlled substance, the burden is upon the claimant to prove a defense to the forfeiture. See United States v. M/V Christie Lee, 640 F. Supp. 667 (S.D.Fla. 1986). In this regard, claimant opposes the government's summary judgment motion on the ground that the government's eighteen month delay in filing of the instant forfeiture complaint has worked to deny claimant his right to a prompt hearing under the due process clause of the fifth amendment. See United States v. $8,850.00, 461 U.S. 555, 564, 103 S.Ct. 2005, 2012, 76 L.Ed.2d 143 (1983); see also M/V Christie Lee, 640 F. Supp. at 672 (delay defense to forfeiture if due process violated); United States v. One 1978 Cadillac Sedan DeVille, 490 F. Supp. 725, 732 (S.D.N.Y. 1980) (same). For the reasons set forth below, the court agrees with claimant and denies the government's motion for summary judgment.

For the purposes of this order only, the court will assume that the government can successfully demonstrate probable cause to believe the defendant vehicle is subject to forfeiture.

The Supreme Court's decision in $8,850.00 controls the outcome of this case. In $8,850.00, the Court heard a civil forfeiture claimant's argument that an eighteen-month delay between the seizure of the defendant currency and the commencement of forfeiture proceedings violated her fifth amendment due process rights. In considering the claimant's argument, the Court held that Barker v. Wingo, 407 U.S. 514, 92 S.Ct. 2182, 33 L.Ed.2d 101 (1972), supplied the appropriate test for determining whether delay in initiating civil forfeiture proceedings violates due process. Barker requires a balancing of four factors: (1) the length of the delay; (2) the reason for the delay; (3) the claimant's assertion of his right; and (4) prejudice to the claimant. The Court applied these factors to the case before it and determined that while the delay was substantial, no other factor weighed in favor of the claimant's due process argument. The opposite holds true here.

1. The Length of the Delay.

As noted previously, eighteen months elapsed between the time the defendant vehicle was seized and the instant action was filed. This same amount of time was found by the Supreme Court to be "quite significant." $8,850.00, 461 U.S. at 564, 103 S.Ct. at 2012. While no constitutional "statute of limitations" has been established for forfeiture actions, the Court has noted that longer delays will require substantial justification to meet the reasonableness requirement of the due process clause. Id. In $8,850.00, the Court recognized that deprivation of a substantial sum of money for eighteen months is a "significant burden." In the instant case, the burden imposed by the government's eighteen month delay in seeking forfeiture of the defendant vehicle is even more significant. In addition to being deprived of the use of the defendant vehicle, claimant has been forced to bear all the costs associated with ownership; e.g., loan installment payments, taxes, insurance premiums, etc. Moreover, unlike currency, an automobile is a wasting asset. See One 1978 Cadillac Sedan DeVille, 490 F. Supp. at 732. The court therefore finds the government's eighteen month delay in filing the complaint for forfeiture to be more than sufficient to trigger the reasonableness analysis.

In addition, it is noteworthy that the instant action was filed only after the court imposed a deadline on the government. It should also be noted that Section 881(b) requires that civil forfeiture proceedings "shall be instituted promptly."

2. The Reason for the Delay.

As noted by the Supreme Court, the decision to seize property is necessarily a hasty one. Id. For this reason, the government must be allowed some time to decide whether to institute forfeiture proceedings. However, where the delay is significant, this reason alone is not enough and the government must establish additional justification. Id. In this regard, the government contends that the delay was caused by the parties' efforts to reach a settlement of the dispute. This contention is nothing short of remarkable. It is clear that the government made no effort to resolve this matter — by settlement or by judicial forfeiture — until ordered to do so by the court's April 26, 1988 order. While the record shows that arguably meaningful negotiations took place between April and June, 1988, it likewise shows that well over one year elapsed between the time of seizure and the government's first attempt to resolve the matter. In $8,850.00, the Supreme Court determined that ongoing remission proceedings coupled with pending criminal proceedings justified the eighteen-month delay in instituting the forfeiture action. In the case at bar, there simply exists no justification for the government's inaction.

Pursuant to 21 C.F.R. § 1316.79, a forfeiture claimant may file a petition for remission or mitigation of the forfeiture.

3. Claimant's Assertion of his Right.

The third element to be considered in the due process balance is the claimant's assertion of the right to a judicial hearing. $8,850.00, 461 U.S. at 568-69, 103 S.Ct. at 2014. As noted previously, the claimant began his efforts to effect the return of the defendant vehicle within days of its seizure by timely filing his petition contesting forfeiture with the DEA. This step halted the administrative proceedings and caused the case to be submitted to the United States Attorney who in turn was required to institute a forfeiture action "promptly." 21 U.S.C. § 881(b). When no action was taken within several weeks, claimant made numerous attempts to persuade the government to return the defendant vehicle or to file a complaint for forfeiture. When these efforts failed, the action to compel forfeiture was filed. See id. at 569, 103 S.Ct. at 2014. Unlike the claimant in $8,850.00, there can be no doubt that claimant has at all times vigorously asserted his right to a judicial hearing.

4. Prejudice.

The fourth and final element of the due process analysis is whether claimant has suffered any prejudice by the delay. Here, the court's primary inquiry is "whether the delay has hampered the claimant in presenting a defense on the merits." $8,850.00, 461 U.S. at 569, 103 S.Ct. at 2014. In the instant case, this factor does not appear to be significant. However, the Supreme Court's four-factor test is designed only as a guide in balancing the interests of the claimant and the government in a particular case. $8,850.00, 461 U.S. at 565, 103 S.Ct. at 2012. Thus, where, as here, the government can offer no credible reason for substantial delay, and the claimant has vigorously asserted his right to a judicial hearing, a finding of prejudice is not a necessary condition for finding a violation of due process. Id.

To review, the court has found (1) that the government's eighteen-month delay in instituting forfeiture proceedings against the defendant vehicle is sufficient to raise due process concerns; (2) that the government can offer no credible reason for this delay; and (3) that claimant has vigorously and consistently asserted his right to a judicial hearing from the start. Because the balance of these factors so strongly favors claimant, the court can only conclude that the government's unjustified delay in instituting the forfeiture action has deprived claimant of his due process right to prompt judicial hearing. Accordingly, the government's motion for summary judgment is DENIED.

C. Status of the Case.

The court finds that the instant forfeiture action is subject to dismissal in view of claimant's constitutional injury. See United States v. One (1) Douglas A-26B Aircraft, 436 F. Supp. 1292 (S.D.Ga. 1977) (Lawrence, J.); U.S. v. $23,407.69 in U.S. Currency, 715 F.2d 162, 166; One 1978 Cadillac Sedan DeVille, 490 F. Supp. at 732; One 1970 Ford Pick Up, 564 F.2d 864; United States v. One Motor Yacht Named Mercury, 527 F.2d 1112 (1st Cir. 1975); Sarkisian v. United States, 472 F.2d 468 (10th Cir. 1973); see also Robinson v. United States, 734 F.2d 735 (11th Cir. 1984). Claimant is therefore entitled to possession of the defendant vehicle. The question remains, however, as to whether claimant is entitled to the additional relief requested in his counterclaim. Accordingly, the court rules as follows. The government's forfeiture complaint is hereby DISMISSED. The parties are DIRECTED to file cross motions for summary judgment on claimant's counterclaim within forty-five (45) days of the date of this order.

III. CONCLUSION.

In sum, plaintiff's motion to strike is GRANTED. Claimant's February 7, 1989 brief is hereby STRICKEN from the record. In addition, plaintiff United States of America's motion for summary judgment and request for certification of probable cause are DENIED. Plaintiff's complaint for forfeiture is hereby DISMISSED. The parties are DIRECTED to file cross motions for summary judgment on claimant's counterclaim within forty-five days of the date of this order.

SO ORDERED.

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U.S. v. ONE (N.D.Ga. 1) 1984 NISSAN 300 ZX, (N.D.Ga. 1989)
(Mar 28, 1989)