State v. $3260.00 U.S. Currency

• Decision Date: 08 May 2018
• Docket Number: No. 20180045,20180045
• Citation: 910 N.W.2d 839
• Parties: STATE of North Dakota, Plaintiff and Appellant v. $3260.00 UNITED STATES CURRENCY; Ronald Newhauser, Defendants
• Court: North Dakota Supreme Court

910 N.W.2d 839

STATE of North Dakota, Plaintiff and Appellant

v.$3260.00 UNITED STATES CURRENCY; Ronald Newhauser, Defendants

No. 20180045

Supreme Court of North Dakota.

Filed May 8, 2018

Chase R. Lingle, Morton County Assistant State’s Attorney, Mandan, ND, for plaintiff and appellant.

Ronald Newhauser, defendant; no appearance.

Jensen, Justice.

[¶1] The State appeals from the district court’s order granting summary judgment to Ronald Newhauser in a forfeiture proceeding. We affirm the district court’s order.

I

[¶2] In February 2015, officers seized $3,260 in United States currency from Newhauser. Newhauser was a passenger in a vehicle where police discovered methamphetamine and other paraphernalia. Newhauser was charged in connection with this stop in district court, but those charges were later dismissed because of federal charges relating to the incident against Newhauser.

[¶3] The State served Newhauser in this forfeiture action in September 2017. Newhauser moved for summary judgment, which he supported with an affidavit. In his affidavit, Newhauser admits the $3,260 was in his wallet and officers seized it as part of the traffic stop. Newhauser also said he obtained the $3,260 from his social security disability income and savings from working occasionally for a contractor. The State responded to Newhauser’s motion, but it did not support its response with any affidavits or other evidence. In its response, the State argued Newhauser raised factual questions through his affidavit requiring an evidentiary hearing. The State never scheduled a hearing on the motion for summary judgment.

[¶4] The district court granted Newhauser’s motion for summary judgment. The district court noted the State and Newhauser’s arguments regarding the promptness of the action and lack of significant nexus between the property seized and offense committed. But the district court concluded the State failed to rebut any facts set forth by Newhauser in his affidavit. Because the State failed to present any evidence that created a genuine dispute of material fact, the district court granted Newhauser’s motion for summary judgment without holding a hearing. The district court entered a judgment requiring the State to return the $3,260 to Newhauser. The State appeals.

II

[¶5] On appeal, the State argues the district court erred by not holding an evidentiary hearing on the forfeiture and granting Newhauser’s motion for summary judgment. This Court reviews orders on motions for summary judgment as follows:

In determining whether summary judgment was appropriately granted, we must view the evidence in the light most favorable to the party opposing the motion, and that party will be given the benefit of all favorable inferences which can reasonably be drawn from the record. On appeal, this Court decides whether the information available to the district court precluded the existence of a genuine issue of material fact and entitled the moving party to judgment as a matter of law.

Hokanson v. Zeigler , 2017 ND 197, ¶ 14, 900 N.W.2d 48 (quoting Tibert v. Nodak Mut. Ins. Co. , 2012 ND 81, ¶ 8, 816 N.W.2d 31 ). This Court has noted:

The party moving for summary judgment has the burden of demonstrating there is no genuine issue of material fact. The party opposing the motion for summary judgment cannot rest upon mere allegations or denials in the pleadings, but must respond, showing there is a genuine issue for trial. Even if factual disputes exist between the parties, summary judgment is appropriate if the law is such that the resolution of the factual dispute will not change the result.

State v. One Black 1989 Cadillac , 522 N.W.2d 457, 461 (N.D. 1994) (citations and quotation marks omitted). "Summary judgment is proper against a party who fails to make a showing sufficient to establish the existence of an element essential to that party’s case and on which that party will bear the burden of proof at trial." Dahlberg v. Lutheran Soc. Servs. , 2001 ND 73, ¶ 11, 625 N.W.2d 241 (citing Engel v. Montana Dakota Utils. , 1999 ND 111, ¶ 7, 595 N.W.2d 319 ).

A

[¶6] The State argues the district court erred by applying N.D.R.Civ.P. 56 to this contested forfeiture. Forfeiture proceedings are civil actions, and "[t]he procedure governing the proceedings, except as otherwise provided in this chapter, is the same as that prescribed for civil proceedings." N.D.C.C. §§ 19-03.1-36.2, 19-03.1-36.3. The procedure for forfeitures is as follows:

If an answer is filed within the time limits in this chapter, the forfeiture proceedings must be set for hearing before the court. At the hearing, the state shall establish probable cause for instituting the forfeiture action following which any owner or person with a legal interest in the property to be forfeited who has filed an answer to the complaint has the burden of proving that the property to be forfeited is not subject to forfeiture under this chapter. If the court finds that the property is not subject to forfeiture under this chapter, the court shall order the property released to the owner or other person with a legal interest in the property as that person’s right, title, or interest appears. The court shall order the property forfeited if it determines that such property or an interest therein is subject to forfeiture.

N.D.C.C. § 19-03.1-36.6 (emphasis added). Section 19-03.1-36(1)(h), N.D.C.C., provides that certain property is forfeitable, including:

All money, coin, currency, and everything of value furnished, or intended to be furnished, in exchange for a controlled substance in violation of this chapter or an imitation controlled substance in violation of chapter 19-03.2, and all real and personal property, assets, profits, income, proceeds, or an interest therein, acquired or derived from the unlawful purchase, attempted purchase, delivery, attempted delivery, manufacturing, or attempted manufacturing of any controlled substance or imitation controlled substance.

[¶7] The State argues the district court prematurely shifted the burdens by applying N.D.R.Civ.P. 56, the rule governing summary judgment, to the proceeding. The State argues N.D.C.C. § 19-03.1-36.6 always requires the district court to hold a hearing, allowing the State to meet its burden at the hearing, if the forfeiture is contested. "The interpretation of a statute is a question of law that is fully reviewable on appeal. We begin with the statutory language, and give those words their plain, ordinary, and commonly understood meaning." State v. One 1990 Chevrolet Pickup , 523 N.W.2d 389, 392 (N.D. 1994) (citations and quotation marks omitted).

[¶8] The plain language of N.D.C.C. § 19-03.1-36.6 requires the district court to schedule a hearing on contested forfeitures if the property owner answers the complaint. The plain language also requires the State to first meet its burden, at the hearing, before the burden shifts to the property owner. However, the North Dakota Rules of Civil Procedure apply, and a party against whom relief is sought may move for summary judgment under N.D.R.Civ.P. 56. The State argues a conflict exists between the procedures provided in N.D.C.C. § 19-03.1-36.6 and N.D.R.Civ.P. 56.

[¶9] This Court has held that:

Under N.D. Const. art. VI, § 3, this Court has the authority to promulgate the rules of procedure to be followed by all the courts of this state. We have explained the interplay between statutory procedures and rules promulgated by this Court, and we have said, " ‘[t]hat we possess the rule-making power does not imply that we will never recognize a statutory rule. We will recognize "statutory arrangements which seem reasonable and workable" and which supplement the rules we have promulgated....’ " City of Fargo v. Ruether , 490 N.W.2d 481, 483 (N.D. 1992) (quoting State v. Vetsch , 368 N.W.2d 547, 552 (N.D. 1985) ). We have also said N.D. Const. art. VI, § 3" ‘places "final authority over procedural rules" with our [C]ourt. Although statutorily-enacted rules of procedure which supplement the rules we have promulgated may remain in effect until superseded or amended by this [C]ourt[.] Article VI, Section 3, mandates that a court-promulgated procedural rule prevails in a conflict with a legislatively-enacted rule of procedure.’ " Ruether , at 483, (quoting City of Fargo v. Dawson , 466 N.W.2d 584, 586 n. 1 (N.D. 1991) ) (citations omitted). In construing a procedural rule and a statute we will harmonize them whenever possible and the procedural statute will supplement our procedural rule. See Ruether , at 483, ; Traynor v. Leclerc , 1997 ND 47, ¶ 8, 561 N.W.2d 644.

State v. Ebertz , 2010 ND 79, ¶ 11, 782 N.W.2d 350.

[¶10] This Court has previously affirmed an order dismissing a forfeiture action before holding an evidentiary hearing. One Black 1989 Cadillac , 522 N.W.2d at 465-66. In One Black 1989 Cadillac , the property owner moved to dismiss the forfeiture action because the State failed to promptly institute the foreclosure proceedings and supported his motion with an affidavit. Id. at 460-61. The State also supported its motion with an affidavit, and this Court treated the dismissal as an order granting summary judgment. Id. at 460. The district court dismissed the State’s complaint, finding the 174-day delay was not a prompt institution of the forfeiture action. Id. This Court concluded summary judgment was proper because the forfeiture action was not prompt as a matter of law. Id. at 466.

[¶11] The two rules, N.D.C.C. § 19-03.1-36.6 and N.D.R.Civ.P. 56, can be harmonized. Reading the statute to supplement the rule, as this Court has previously acknowledged, summary judgment may be appropriate in a forfeiture proceeding. See One Black 1989 Cadillac , 522 N.W.2d at 460-61. The language of N.D.C.C. § 19-03.1-36.3 provides that forfeiture proceedings are governed by the North Dakota Rules of Civil Procedure. Therefore, the rule and statute, harmonized to work together, allow for summary judgment in forfeiture proceedings...