UNITED STATES
v.
ONE CONDOMINIUM APARTMENT
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A claimant is not entitled to post-seizure interest, costs, or attorneys' fees in a forfeiture action.
The United States initiated forfeiture proceedings against a residential condominium. The record owner defaulted, but Glendale Federal Savings and Loa…
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GONZALEZ, District Judge.
THIS CAUSE has come before the court upon the motion of the claimant, Glendale Federal Savings and Loan Association for summary judgment, and the cross motion of the plaintiff, the United States of America, for summary judgment.
The United States brought forfeiture proceedings against the defendant property, a residential condominium unit, on February 12, 1985, alleging that the subject property was forfeited to the United
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States, pursuant to 21 U.S.C. § 881(a)(6). The record title owner, John Cestaro, failed to file a claim in this action and a default judgment was entered against him on November 5, 1985. Glendale Federal Savings and Loan Association filed a claim and asserted an interest in the property as first mortgage holder. The Summit Towers Condominium Association also filed a claim for condominium dues owed to the Association.
The parties to this action stipulated to the sale of the property and on December 6, 1985, the court entered an order for interlocutory forfeiture. The property was sold by the General Services Administration on December 12, 1985, and the sale was confirmed by order of the court on December 26, 1985. On February 12, 1986, the court ordered the payment of the principal to Glendale Federal Savings. All remaining proceeds were tendered into the registry of the court, pending disposition of the claims for attorneys’ fees, interests and costs.
The issue before the court is whether a claimant is entitled to post-seizure interest, costs, and attorneys’ fees when forfeiture actions are brought by the government. The court is in agreement with the reasoning and the result of
United States v. One Piece of Real Estate, Etc.,
571 F.Supp. 723, 725-26 (W.D.Tex.1983), and finds that title vests in the government at the moment of the commission of the illegal act.
United States v. Stowell,
133 U.S. 1, 16-17, 10 S.Ct. 244, 247, 33 L.Ed. 555 (1889);
See also
21 U.S.C. § 881(h) (“all right, title and interest in [forfeited] property ... shall vest in the United States upon commission of the act giving rise to forfeiture____”).
However, as the court in
One Piece of Real Estate,
571 F.Supp. at 725, noted, under administrative practice, the government has chosen to provide lienholders with interest up to the date of seizure, thus providing greater protection than is required under
Stowell. See
28 C.F.R. 9.2(d). This practice is unaffected by the enactment of 21 U.S.C. § 881(a)(6).
One Piece of Real Estate, Etc.,
571 F.Supp. at 726;
Contra United States v. All That Tract and Parcel of Land,
602 F.Supp. 307, 313 (N.D.Ga.1985). Innocent claimants, such as Glendale Federal, are entitled only to the amount of their principal and any accrued interest up to the moment of seizure. Accordingly, it is hereby
ORDERED AND ADJUDGED that the motion of the claimant, Glendale Federal Savings and Loan Association, for summary judgment, be and the same, is DENIED. The cross motion of the plaintiff, the United States of America, for summary judgment is GRANTED. Glendale Federal Savings and Loan Association shall file a verified statement of the amount of preseizure interest, which is owing, together with a proposed order of disbursement, within fifteen (15) days of the filing of this order.
Cases With Similar Vibessemantic neighbors from the corpus
Citator
Cited By
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In re Metmor Fin. v. Metmor Fin., Inc., 819 F.2d 446 (4th Cir. 1987)…these circumstances. Moreover, Metmor’s counsel conceded at oral argument that the issue was largely academic in this case. . United States v. 8.4 Acres of Land, etc., et al., 648 F.Supp. 79 (D.S.C.1986); United States v. One Condominium Apartment, 636 F.Supp. 457 (S.D.Fla.1986); United States v. Escobar, 600 F.Supp. 88 (S.D.Fla.1984). . United States v. One Piece of Real Estate, etc., 571 F.Supp. 723 (W.D.Tex.1983). . The government claims to find supportive legislative intent in the fact that, in its 1978…
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United States v. Certain Real Prop. Known as Gulfstream W., 710 F. Supp. 792 (S.D. Fla. 1989)…re, in construing the “interest” of an innocent owner under 21 U.S.C. § 881(a)(6), it is important to consider this past practice of the sovereign along with the history of the law of forfeiture. See United States v. One Condominium Apartment, 636 F.Supp. 457 (S.D.Fla.1986) (Gonzalez, J.); United States v. One Piece of Real Estate, 571 F.Supp. 723 (W.D.Tex.1983); United States v. 8.4 Acres of Land, 648 F.Supp. 79 (D.S.C.1986), aff'd, 823 F.2d 549 (4th Cir.1987); also see United States v. E…1 / 2
Authorities Cited
- United States v. Stowell, 133 U.S. 1 (U.S. 1890)