United States v. $579,475.00 in U.S. Currency
Opinion
This appeal concerns the pleading requirements for a verified claim in a civil forfeiture proceeding. The case is governed by the Supplemental Rules for Admiralty or Maritime Claims and Asset Forfeiture Actions, which supplement the Federal Rules of Civil Procedure. A prior decision of this court held that a claimant who contests a forfeiture must state its interest in the disputed property "with some level of specificity," and that "a general assertion" of an interest in property is insufficient to satisfy the governing rule of procedure.
United States v. $154,853.00
,
This case arises from a traffic stop conducted by the Arkansas State Police in September 2014. A state police corporal found two boxes containing $579,475.00 in the cab of a tractor trailer. The government sought to forfeit the money in the district court on the ground that it was "(1) money intended to be furnished in exchange for a controlled substance; (2) proceeds traceable to such an exchange; and (3) money used and intended to be used to facilitate a violation of the Controlled Substances Act."
See
LNG, a trucking company, filed a verified claim asserting "a claim to, interest in, and right to the property seized herein," and alleging that it was "the owner" of the seized currency. The government moved to strike LNG's claim for failing to comply with Supplemental Rule G(5).
See
Fed. R. Civ. P. Supp. R. G(8)(c)(i)(A). On the point in dispute here, Rule G(5) requires that a
claim in a civil forfeiture proceeding must "identify the claimant and state the claimant's interest in the property."
We now conclude that the "specificity" requirement imposed by our prior decision is not supported by the rule, and that LNG's claim was sufficient to comply with Rule G(5). A rule of civil procedure should be interpreted in accordance with its plain meaning.
Pavelic & LeFlore v. Marvel Entm't Grp.
,
The government contends that Rule G(5) does not state what level of specificity is required for a claim, and that the court should look to Supplemental Rule C and Federal Rule of Civil Procedure 8 to answer the question. While it is true that if Rule G does not address an issue, then the other rules also apply,
see
Supp. R. G(1), we disagree with the government's premise. Rule G(5) addresses the issue of what is a sufficient claim; it establishes only a bare-bones requirement to "state the claimant's interest in the property." The absence of a particularity requirement in Rule G(5), despite its presence elsewhere in Rule G,
e.g.
, Supp. R. G(2)(c), G(5)(a)(iii), shows that the rulemakers opted not to impose one for stating an interest in property.
Cf.
Russello v. United States
,
In any event, "[s]pecific facts are not necessary" to state a claim under Rule 8,
Erickson v. Pardus
,
The government contends that we should adhere to the prior decision in
United States v. $154,853.00
even if it is incorrect, but we do not think this is an appropriate case for the application of
stare decisis
by a regional court of appeals. The prior decision did not analyze the specificity question under Rule G(5) and seemed to believe that it was already settled by circuit precedent.
For these reasons, we reverse the district court's order striking LNG's claim and remand the case for further proceedings. The district court's order also commented on LNG's invocation of the Fifth Amendment in response to certain special interrogatories, and resulting prejudice to the government, but we do not read the order to cite the interrogatory responses as an independent ground for striking LNG's claim. We thus leave that matter for further consideration on remand.
Reference
- Full Case Name
- UNITED STATES of America, Plaintiff - Appellee, v. $579,475.00 IN U.S. CURRENCY, Defendant, LNG Express, Inc., Claimant - Appellant.
- Cited By
- 13 cases
- Status
- Published