US v. 26.075 Acres, Located in Swift Creek Tp.

• Court: U.S. District Court — Eastern District of North Carolina
• Citation: US v. 26.075 Acres, Located in Swift Creek Tp., 687 F. Supp. 1005 (E.D. N.C. 1988)
• Decision Date: 15 April 1988
• Docket Number: No. 86-807-CIV-5.,86-807-CIV-5.
• Parties: UNITED STATES of America, Plaintiff, v. 26.075 ACRES, MORE OR LESS LOCATED IN SWIFT CREEK TOWNSHIP, WAKE COUNTY, NORTH CAROLINA; a Parcel of Real Property and All Improvements, Buildings, Structures, Fixtures, Furnishings, and Appurtenances Situated Thereon, Said Property Being Titled in the Name of Rosemarie D. Santoro; and any and All Proceeds from the Sale of Said Property, Defendant.

687 F. Supp. 1005

UNITED STATES of America, Plaintiff, v. 26.075 ACRES, MORE OR LESS LOCATED IN SWIFT CREEK TOWNSHIP, WAKE COUNTY, NORTH CAROLINA; a Parcel of Real Property and All Improvements, Buildings, Structures, Fixtures, Furnishings, and Appurtenances Situated Thereon, Said Property Being Titled in the Name of Rosemarie D. Santoro; and any and All Proceeds from the Sale of Said Property, Defendant.

No. 86-807-CIV-5.

United States District Court, E.D. North Carolina, Raleigh Division.

April 15, 1988.

Stephen A. West, Asst. U.S. Atty., Raleigh, N.C., for plaintiff.

Nicholas J. Dombalis, II, Merriman, Nicholls, Crampton, Dombalis & Aldridge, Raleigh, N.C., for defendant.

David R. Godfrey, Savage & Godfrey, Apex, N.C., for J.C. Hampton Grading Co.

Archie L. Smith III, Durham, N.C., for claimant Theodore H. Graepel.

William G. Simpson, Jr., Staff Counsel, N.C. Civil Liberties Union Legal Foundation, Greensboro, N.C., for amicus curiae.

Lacy M. Presnell, III, Raleigh, N.C., for claimants Thomas F. Santoro, Catherine Marie Santoro, Thomas F. Santoro as Guardian Ad Litem for Christopher Jason Ashley Santoro.

JAMES C. FOX, District Judge.

STATEMENT OF THE CASE

This is a civil action brought by the United States seeking the forfeiture of approximately 26 acres of real property and all appurtenances and improvements thereto, pursuant to 21 U.S.C. § 881(a)(7). The defendant real property was seized by the United States Marshal on August 11, 1986, pursuant to a Warrant of Arrest In Rem issued by the court on July 29, 1986. Thereafter, several parties filed claims alleging some interest in the defendant real property and, in some cases, setting up certain defenses to the forfeiture of the defendant real property. These claimants include Rosemarie Santoro, the holder of legal title to the defendant real property; Thomas F. Santoro, who conveyed his interest in the defendant real property to Rosemarie Santoro, his former wife, in accordance with a separation agreement entered into in March, 1983; Catherine Marie Santoro and Christopher-Jason Ashley Santoro, both claiming an interest as beneficiaries of a trust in their father's former interest in the real property, presumably alleged to be created by the 1983 separation agreement; Merriman, Nicholls, Crampton, Dombalis & Aldridge, P.A., claiming an interest as beneficiary of a deed of trust for attorneys' fees; and Theodore H. Graepel and J. C. Hampton Grading Company, Inc., lienholders.

All parties claiming any interest in the defendant real property are now before the court, since the time by which claims must be filed has passed. This case is before the court on cross-motions for summary judgment filed by the United States and claimants Rosemarie Santoro, Thomas F. Santoro, Catherine Marie Santoro, Christopher-Jason Ashley Santoro, through his guardian ad litem, Thomas F. Santoro, and Merriman, Nicholls, Crampton, Dombalis & Aldridge, P.A.¹ Also before the court is a motion to strike the claims of all claimants other than Rosemarie Santoro, for lack of standing, filed by the United States. The North Carolina Civil Liberties Union was permitted to file an amicus curiae brief supporting claimants' challenges to the constitutionality of the civil forfeiture provisions which underlie the instant in rem action. All the issues have been exhaustively and conscientiously briefed, and the motions now are ripe for disposition.

SUMMARY OF UNDISPUTED MATERIAL FACTS

1. Rosemarie Santoro is forty years old and is married to Tom Santoro. She has two children, Catherine Santoro, age twenty-one, and Christopher Santoro, age seventeen. Christopher is a senior at Clayton High School; Catherine is a sophomore prevet student at North Carolina State University. Ms. Santoro and Tom Santoro were first married in 1968; Christopher was born of that marriage; Catherine was born of a previous marriage but was adopted by Tom Santoro in 1969.

2. The defendant real property was purchased by, and conveyed to claimants Rosemarie Santoro and her husband, Thomas Santoro, on May 14, 1979. Subsequently, Rosemarie Santoro and Thomas Santoro entered into an separation agreement, dated March 9, 1983, whereby Thomas Santoro agreed to and subsequently did convey his interest in the defendant real property to Rosemarie Santoro by quitclaim deed. The Santoros subsequently remarried in December, 1986.

3. Claimant perceives the defendant real property to be divided into at least two tracts of land which are in close proximity but geographically are separate and distinct.² It appears that the defendant property was taxed as two tracts in 1986. One tract, designated by claimant as Section A is composed of approximately five acres and is situated on the northwest side of Holly Springs Road (N.C.S.R. 1152). The personal residence of claimant Rosemarie Santoro is located on Section A, as well as several out buildings, including a horsebarn. The remaining approximately twenty-one acres, identified by the parties as Section B, is located on the south-east side of Holly Springs Road, and is a mostly wooded tract of vacant land, although some grading and clearing has been done on a portion of the tract.

4. The Santoros lived on the defendant real property for approximately twelve years until they were removed from the property by federal marshals on August 11, 1986. Mr. and Mrs. Santoro lived on this property for about five years before they purchased it in 1979; they originally purchased approximately thirty-eight acres, but since then have sold over twelve acres. All monies paid by the Santoros for the purchase of the property came from the sale of their home in Charlotte, their employment earnings and from the sale of some stock in the company for which Tom Santoro was employed; none of the money used to purchase the defendant property came from illegal activities.

5. The minimum admitted value of the defendant real property is in excess of $100,000.00.

6. During April, May and June of 1986, claimants Rosemarie Santoro (mother), Catherine Marie Santoro (daughter), and Christopher-Jason Ashley Santoro (son) resided at the residence located on Section A of the defendant real property.

7. During April, May and June of 1986, Rosemarie Santoro sold quantities of a controlled substance, cocaine, at her residence located on the defendant real property.

8. Since April 1986, Wake County Sheriff's Department Detective Angelia B. Knight participated in an undercover operation involving the selling of cocaine by Rosemarie Santoro.

9. On May 22, 1986, Rosemarie Santoro met with Detective Knight, who was known to her as "Angie," at the Santoro residence located on Section A of the defendant real property and, at that time, sold Detective Knight a controlled substance, cocaine, then in her possession.

10. On May 29, 1986, Detective Knight contacted Rosemarie Santoro with regard to a second purchase of cocaine, was instructed by Ms. Santoro to come to her residence located on the defendant real property and, having arrived at her residence, was sold a controlled substance—cocaine —by Ms. Santoro.

11. On June 2, 1986, Rosemarie Santoro met Detective Knight in her car in the driveway to her residence located on the defendant real property and there delivered to Knight a controlled substance, cocaine, then in her possession.

12. On June 5, 1986, Detective Knight met Rosemarie Santoro at her residence located on the defendant real property, at which time Ms. Santoro delivered to Knight a sample of cocaine which was to be involved in a future intended trade of marijuana for cocaine.

13. On June 5, 1986, Detective Knight was further advised by Rosemarie Santoro that the intended marijuana/cocaine trade could take place somewhere on the defendant real property, and that she would put up her deed to the defendant real property as collateral to ensure that her source would go through with the intended marijuana/cocaine trade.³ She again advised Detective Knight that she would put up the deed to her property as collateral to secure the deal on June 11, 1986. The deed to defendant property does not make a distinction between what the parties now refer to as "Section A" and "Section B."

14. On June 11, 1986, Detective Knight and Rosemarie Santoro met at Santoro's residence located the defendant real property. Ms. Santoro walked with Knight to a secluded location on Section B of the defendant real property and told Knight that the proposed marijuana/cocaine trade could take place at this location. Also discussed was the possibility that in the event of rain, the marijuana/cocaine trade could occur in a barn located to the rear of the Santoro residence on Section A of the defendant real property.

15. On June 30, 1986, Rosemarie Santoro was indicted in the Eastern District of North Carolina in a six count indictment charging her with violations of Title 21, United States Code, Sections 841(a)(1) and 846. On September 8, 1986, Ms. Santoro pled guilty to Count Three of the indictment, charging her with knowingly and intentionally possessing with the intention to distribute 2.9 grams of cocaine, a Schedule II narcotic controlled substance, in violation of Title 21, United States Code, Section 841(a)(1), on or about May 22, 1986, the date of the first drug transaction known to have occurred on the defendant real property.

16. The total amount of drugs sold by Ms. Santoro to Deputy Knight was approximately 12.8 grams. Santoro received very little, if any, money for her role in the four, hand-to-hand transactions with Detective Knight. Other than the cocaine involved in these transactions, Deputy Knight never saw more than two grams of cocaine and two grams of marijuana on the defendant property. No controlled substances were manufactured, grown or produced on the defendant real property.

17. In each of the four transactions with Deputy Knight, Rosemarie Santoro was acting as the go-between or intermediary between...