UNITED STATES OF AMERICA, PLAINTIFF-APPELLEE,
v.
$239,500 IN U.S. CURRENCY, DEFENDANT-APPELLANT. ARTHUR CLYDE ELLIS, JR., AND FREE ZONE BANK, LTD., CLAIMANTS-APPELLANTS

11th Cir. | 1985-07-01
No. 84-5670
764 F.2d 771 Court of Appeals for the Eleventh Circuit (1985) Positive Treatment
Cited by 14 cases

AI-generated. These summaries, headnotes, and key points are machine-generated and may contain errors or omissions. Always verify against the full opinion text below. Not legal advice.


Holding

The court held that the district court did not abuse its discretion in ordering the forfeiture of currency and striking the claimants' interest for failure to comply with a discovery order.


Facts & Procedural History

The Government filed a forfeiture action against currency after a person attempted to leave the country without reporting it. The claimants failed to …

The full statement of facts, procedural history, and disposition for this case are member content.

Join FLexlaw to unlock all legal intelligence

© FLexlaw, Inc. — AI-generated enrichments are proprietary. All rights reserved.


Opinion of the Court
PER CURIAM:

PER CURIAM:

The sole issue in this forfeiture case is whether the district court erred in ordering that defendant currency be forfeited and that appellants’ claims of an interest in the currency be stricken for their failure to comply with an order of the court directing their appearance for deposition. 31 U.S. C.A. § 5317(c); Fed.R.Civ.P. 37(b). Finding that the district court did not abuse its discretion, we affirm.

The Government filed a complaint alleging that Arthur Clyde Ellis violated 31 U.S. C.A. § 5316 by attempting to board a plane bound for Costa Rica from the United States without reporting the $239,500 he was carrying in his bag and on his person. Under 31 U.S.C.A. § 5316 an individual must report any currency in excess of $5,000 being carried outside the country. If no report has been filed the currency is subject to forfeiture under 31 U.S.C.A. § 5317(c).

Pursuant to that statute the Government filed a Complaint for Forfeiture In Rem against the currency itself. The district court issued a Warrant of Arrest In Rem against the currency directing the marshal for the Southern District of Florida to take the defendant currency into his custody and to admonish the owner or possessor of the currency to appear and file a claim in district court. Through their attorney, Arthur Clyde Ellis and the Free Zone Bank, Ltd. filed a claim. The attorney was served with notices of deposition for Ellis and the president or chief executive officer of Free Zone Bank. The depositions were set for June 8, 1984.

The deponents (claimants) failed to appear and a motion for sanctions was filed under Fed.R.Civ.P. 37(b). The district court treated the motion for sanctions as a motion to compel discovery. It ordered each claimant to appear for deposition on July 6, 1984, with the admonition that “if claimants failed to appear” as ordered “the claims will be stricken.” Claimants failed to appear for these depositions. The Government then moved for dismissal of claimants’ claims and for judgment of forfeiture in its favor. Claimants’ counsel stated, in response, that Ellis “refused to disclose (to his own attorneys) where he could be reached telephonically because of the fact that he was busily obtaining defense counsel in connection with the indictments that were filed against him at an earlier date.”

The Government’s reply noted that Ellis was the General Manager of the Bank and its agent. It also noted that Ellis was a fugitive from justice and again requested that the claims be dismissed. The district court agreed and dismissed all claims under Fed.R.Civ.P. 37(b). Thereafter, judgment was entered for the Government forfeiting the defendant currency under 31 U.S.C.A. § 5317(c).

Claimants’ argument that the district court should be reversed because “the Government would never prevail in this action” is without merit. The probable merit of the Government’s case is irrelevant to the controversy at issue. Discovery orders must be obeyed even by those foreseeing ultimate success in the district court. Sanctions were asked for under Fed.R.Civ.P. 37(b) after claimants twice failed to appear for deposition. Claimants disobeyed the district court’s order when they failed to appear for the second time. While dismissal is a severe sanction, the imposition of sanctions for failure to provide discovery rests within the trial court’s discretion and will not be overturned absent abuse of that discretion. Properties Intern. Ltd. v. Turner, 706 F. 2d 308, 310 (11th Cir.1983). Nothing in the record indicates the district court abused its discretion.

The district court did not err in forfeiting the defendant $239,500 to the Government. 31 U.S.C.A. § 5317(c) provides for forfeiture if 31 U.S.C.A. § 5316 is violated. The dismissal of the claims left no issue before the court as to the forfeiture and left appellants without standing to contest the merits of the Government’s claim. The entire sum was subject to forfeiture. United States v. Currency Totalling $43,318.08, 609 F. 2d 210 (5th Cir.1980).

AFFIRMED.


Cases With Similar Vibessemantic neighbors from the corpus


Citator

Cited By

  • Buchanan v. Bowman, 820 F.2d 359 (11th Cir. 1987)
    …reasonable offer to appear, and ordered that Mr. Burke’s answer be stricken and that default be entered against him. The standard of review in a default judgment under Rule 37(b) is set out in the case of United States v. $239,500 in U.S. Currency, 764 F. 2d 771 (11th Cir.1985). The court in that case held that “[w]hile dismissal is a severe sanction, the imposition of sanctions for failure to provide discovery rests within the trial court’s discretion and will not be overturned absent abuse of that discret…
  • Malautea v. Suzuki Motor Co., Ltd., 987 F.2d 1536 (11th Cir. 1993)
    …f a litigant’s case does not preclude the imposition of a default judgment sanction against that litigant. “Discovery orders must be obeyed even by those foreseeing ultimate success in the district court.” United States v. $239,500 in U.S. Currency, 764 F. 2d 771, 773 (11th Cir.1985). In sum, we affirm the Rule 37(b)(2)(C) sanction of a default judgment against the defendants on the issue of liability. Judge Edenfield’s factual findings supporting the sanction are not clearly erroneous. Nor was the selection…
  • United States v. Pole NO. 3172, 852 F.2d 636 (1st Cir. 1988)
    …these cases, the attorney upon whom notice was served was in contact [*642] with his client, or it was clear that the client himself decided, after learning of his discovery obligations, not to appear. See United States v. $239,500 in U.S. Currency, 764 F. 2d 771 (11th Cir.1985); United States v. One Lot of U.S. Currency totalling $506,537.00, 628 F.Supp. 1473 (S.D.Fla.1986). At least insofar as the failure to appear for the deposition is concerned, there is no evidence of willfulness. We also fail to see a…

Previewing 3 of 8 citing cases — full citator treatment, depth of discussion, and citing context are member features.

Join FLexlaw to unlock all legal intelligence

Authorities Cited

Full citator, related cases, and AI research tools

Open in FLexlaw