Vance v. U.S.

• Decision Date: 03 April 1997
• Docket Number: No. 96-CV-73096-DT.,96-CV-73096-DT.
• Parties: William J. VANCE and Ronald L. Vance, Petitioners, v. UNITED STATES of America, Respondent.
• Court: U.S. District Court — Eastern District of Michigan

Page 944

965 F.Supp. 944

William J. VANCE and Ronald L. Vance, Petitioners, v. UNITED STATES of America, Respondent.

No. 96-CV-73096-DT.

United States District Court, E.D. Michigan, Southern Division.

April 3, 1997.

Ronald L. Vance, Federal Correctional Institution-Marianna, Marianna, FL, pro se.

Joseph J. Allen, Asst. U.S. Atty., Detroit, MI, for Respondent.

OPINION AND ORDER

ZATKOFF, District Judge.

I. INTRODUCTION

Before the Court is the recommendation of Magistrate Judge Paul J. Komives on petitioners' Motion for Return of Property pursuant to Fed.R.Crim.P. 41(e). The Court finds that the facts and legal arguments are adequately presented in the parties' briefs, and the decisional process would not be significantly aided by oral argument. Therefore, pursuant to E.D. Mich. Local R. 7.1(e)(2), it is hereby Ordered that the motions be resolved on the briefs submitted.

On October 21, 1996, Magistrate Judge Komives recommended that the petitioners' Motion for Return of Property be construed as a civil complaint seeking equitable relief. Magistrate Judge Komives further recommended that this Court conclude that petitioners have raised a genuine issue of material fact with respect to whether the government has satisfied statutory and constitutional requirements regarding the forfeiture of petitioners' seized property, thus providing the Court with proper jurisdiction to consider petitioners' claims. Furthermore, Magistrate Judge Komives concluded that the general six-year statute of limitations provisions for actions against the United States, set forth in 28 U.S.C. § 2401(a), applies to petitioners' claim, and, that the petitioners filed their claim within this period. Finally, Magistrate Judge Komives recommended that this Court conclude that petitioners have raised a genuine issue of material fact with respect to William Vance's standing to contest the seizure and forfeiture of the property, and, also with respect to petitioners' diligence in prosecuting their claim, thus precluding application of the doctrine of laches.

On November 22, 1996, respondent filed an Objection to the Magistrate Judge's Recommendation pursuant to 28 U.S.C. § 636(b)(1)(B) and E.D. Mich. Local R. 72.1(d)(2) requesting de novo review of the Magistrate Judge's decision. The Court has reviewed the Magistrate Judge's Report and Recommendation submitted in this case and any objections filed thereto. The Recommendation of the Magistrate Judge is hereby accepted in part and rejected in part: The Magistrate's Recommendations set forth in paragraphs (A) — (E) in Section I of the Report and Recommendation are hereby ADOPTED as the opinion of this Court (Report and Recommendation, page 1); The Magistrate's Recommendation concluding that petitioners have raised genuine issue of material fact with respect to their diligence in prosecuting their claim, thus precluding application of the doctrine of laches is REJECTED. Now therefore, for reasons set forth below, the Court finds that the equitable doctrine of laches bars petitioners' claim in this equitable proceeding.

II. FACTUAL BACKGROUND

In December 1990, a task force composed of various state and federal law enforcement officers conducted a series of searches and arrests. These searches and arrests were the product of a long-term investigation of a cocaine distribution operation between Miami, Florida and Detroit, Michigan, which ultimately led to the conviction of 20 people, including petitioner Ronald Vance, on various drug distribution offenses.¹ As part of this series of searches and arrests, on December 10, 1990 state and federal agents conducted a raid at a residence located at 23449 Hazelwood in Hazel Park, Michigan. The agents arrested Ronald Vance, and seized from the premises the property in question, a 1989 black and white Pantera powerboat with towing trailer, Vehicle Identification Number (VIN) WCW71203B989. Following the seizure of the boat, the Drug Enforcement Agency (DEA) initiated administrative forfeiture proceedings. On August 8, 1991, the DEA administratively forfeited the boat pursuant to 19 U.S.C. § 1609. Subsequent to its forfeiture of the boat, the DEA paid off a lien on the boat held by the National Bank of Detroit (NBD) in the amount of $9,460.06 and disposed of the property to another governmental agency.

On July 15, 1996, Petitioners filed a Motion for Return of Property in this Court seeking return of the boat, claiming that the seizure of the boat without a warrant was a violation of the Fourth Amendment and that the forfeiture of the boat was without written notice as required by 19 U.S.C. § 1607(a). The government responded by contending that the petitioners received adequate notice of the forfeiture of their boat. In the alternative, the government argued that a claim for return of the boat is actually a claim for equitable relief, and that the Court should decline to exercise its equitable jurisdiction because petitioners have an adequate remedy at law; petitioner lacks standing; and the claims are barred by the doctrine of laches.

III. OPINION

A. Latches and the Statute of Limitations

The Court having adopted the Magistrate Judge's Recommendation in all other relevant respects, the sole issue to be addressed by this Court concerns the application of the equitable doctrine of laches. The Magistrate's Recommendation concluded that the general six-year statute of limitation provisions for actions against the United States found under 28 U.S.C. § 2401(a) applies to petitioners' claim in this action. Contrary, the government contends that the petitioners' claim is barred by the equitable doctrine of laches. As stated in the Magistrate's Recommendation, there appears to be only two courts that have directly confronted the issue of what statute of limitations provisions apply to an equitable action challenging a deficient administrative forfeiture.² (Report and Recommendation, page 22, note 7).

Regardless of whether this action falls under the general six-year statute of limitations, the equitable doctrine of laches may still exist to bar petitioners claim irrespective of a controlling statute of limitations. Young v. Bradley, 142 F.2d 658, 662 (6th Cir.1944); Patterson v. Hewitt, 195 U.S. 309, 25 S.Ct. 35, 49 L.Ed. 214 (1904). In the Sixth Circuit, there is a strong presumption that laches will not apply when the analogous statute has not run, absent compelling reasons. Patton v. Bearden, 8 F.3d 343, 348 (6th Cir.1993); Elvis Presley Enterprises v. Elvisly Yours Inc., 936 F.2d 889, 894 (6th Cir.1991); Tandy Corp. v. Malone & Hyde, Inc., 769 F.2d 362, 365-66 (6th Cir.1985), cert. denied, 476 U.S. 1158, 106 S.Ct. 2277, 90 L.Ed.2d 719 (1986). However, laches may apply irrespective of the statute of limitations. Young, 142 F.2d at 662. Indeed, other Circuits have applied laches in cases governed by a statute of limitations. See e.g. Maksym v. Loesch, 937 F.2d 1237, 1248 (7th Cir.1991); K-Mart Corp. v. Oriental Plaza, Inc., 875 F.2d 907, 911 (1st Cir.1989); Azalea Fleet, Inc. v. Dreyfus Supply & Machinery Corp., 782 F.2d 1455, 1459 (8th Cir.1986).

Due to the lack of recognizable uniform application of the general six-year statute of limitations to equitable actions challenging a deficient administrative forfeiture procedure, and the compelling facts of this case, the Court finds the application of the laches analysis to be appropriate in this case.

B. The Latches Standard

According to BLACKS LAW DICTIONARY (5th Ed.), the "doctrine of laches is based upon the maxim that equity aids the vigilant and not those who slumber on their rights." See also Kansas v. Colorado, 514 U.S. 675, ___, 115 S.Ct. 1733, 1742, 131 L.Ed.2d 759 (1995). "The doctrine of laches is designed to promote diligence and prevent enforcement of a stale claim." Jabbar-El v. Sullivan, 811 F.Supp. 265, 271 (E.D.Mich. 1992) (citing Waddell v. Small Tube Products, Inc., 799 F.2d 69, 74 (3rd Cir.1986)). Dismissal of a claim on the grounds of laches requires that there be (1) unreasonable and unexcused delay in bringing the claim, and (2) material prejudice to the defendant as a result of the delay. A.C. Aukerman Co. v. R.L. Chaides Construction Co., 960 F.2d 1020, 1028 (Fed.Cir.1992) (en banc). To establish a laches defense, both of the above prongs must be met. Only then can the Court weigh the delay and prejudice to determine whether justice requires that the claim be barred. Advanced Cardiovascular Systems Inc. v. Scimed Life Systems, Inc., 988 F.2d 1157, 1161 (Fed.Cir.1993); Gardner v. Panama R.R. Co., 342 U.S. 29, 31, 72 S.Ct. 12, 13-14, 96 L.Ed. 31 (1951). When applying the doctrine of laches to bar a claim, the period of delay is measured from when the claimant had actual notice of the claim, or, would have reasonably been expected to inquire about the subject matter. Id.

In the present case, the government has articulated compelling reasons in support of their laches defense.

C. Analysis

1) Unreasonable and Unexcused Delay

To establish a laches defense, it must first be shown that there was unreasonable and unexcused delay on the part of the petitioners in bringing their claim. A.C. Aukerman Co., supra. It is indisputable that petitioners knew of the seizure of their boat in December of 1990. Petitioners have set forth no meritorious justification for their five year delay in commencing appropriate legal proceedings for the return of their boat. Petitioners' tenuous argument that their lack of diligence in pursuing their claim resulted from inadequate notice is nebulous insofar as petitioners own submissions demonstrate that they had actual knowledge that their boat had been seized in December of 1990. (Affidavit of Ronald Vance, para. 2-5; Affidavit of William Vance, para. 2-5) Furthermore, there is no question that the DEA did discharge its constitutional obligation to provide petitioners with published notice of the proposed forfeiture in a newspaper of general circulation....