Bailee Standing to Claim Property Seized for Forfeiture
Sometimes, the person from whom the property is seized was given the property by a third person. In those cases, it might be best for the person from whom the property was seized to file a claim for court action as a “bailee.”
The bailee has standing to file the claim for court action as long as they identify the third party (bailor) by listing their name and address in the verified claim. The bailee must also show in the claim that he has “authority” to make the claim on the third party’s behalf or to protect the bailee’s interest in the property.
To be safe, the third party might make their own claim while acknowledging that the property was given to the bailee, as the original claimant, on a temporary basis to hold. Alternatively, the third party bailor who owns the property could file an acknowledgment of the claim expressly giving the bailee authority to make a claim on their behalf, although it is not required.
A bailee of property has standing to contest a civil forfeiture. In United States v. $38,000 in U.S. Currency, 816 F.2d 1538 (11th Cir.1987), the court found that a bailee of seized currency had a sufficient interest in the bailed currency to have standing to contest the currency’s forfeiture. Id. at 1544.
The court reasoned that a bailee has a possessory interest in bailed property sufficient to assert a claim against anyone, other than the bailor, who interferes with that interest. Id. The court held that the bailee had standing to contest the forfeiture of the bailed currency. Id.
In $321,470.00, 874 F.2d at 304, the court held: “No one can question the standing of a bailee or agent to attack a forfeiture of property subject to a lawful or even colorably lawful bailment or agency.”
In United States v. $191,910.00 in U.S. Currency, 16 F.3d 1051, 1058 (9th Cir.1994), the court found that although mere unexplained possession is insufficient, “where a claimant asserts a possessory interest and provides some explanation of it (e.g., that he is holding the item for a friend), he will have standing.”
Rule C(6) of the Supplemental Rules for Certain Admiralty and Maritime Claims provides:
“[A] person who asserts an interest in or right against the property that is the subject of the [civil forfeiture] action must file a verified statement identifying the interest or right.”
Some courts have noted that a bailee cannot also make a claim as an “innocent owner.” Title 18, United States Code, Section 983(d) (1) provides, “An innocent owner’s interest in property shall not be forfeited under any civil forfeiture statute.
The claimant shall have the burden of proving that the claimant is an innocent owner by a preponderance of the evidence.” 18 U.S.C. § 983(d) (1). Section 983(d) (6) provides, for purposes of the “innocent owner” statute, the definition of the term “owner:”
In this subsection, the term “owner”-
(A) means a person with an ownership interest in the specific property sought to be forfeited, including a leasehold, lien, mortgage, recorded security interest, or valid assignment of an ownership interest; and
(B) does not include-
(I) a person with only a general unsecured interest in, or claim against, the property or estate of another;
(ii) a bailee unless the bailor is identified and the bailee shows a colorable legitimate interest in the property seized;
(iii) a nominee who exercises no dominion or control over the property.
Id. § 983(d) (6).
Attorneys for the Bailee in a Civil Asset Forfeiture Case
Contact an attorney if you were acting as a bailee in actual or constructive possession of the property when it was seized for forfeiture.
At the Sammis Law Firm in Tampa, FL, attorney Leslie Sammis is experienced in fighting civil asset forfeiture cases on behalf of the bailee. She also represents innocent owners in federal civil asset forfeiture cases.
Although the government might encourage you to file a petition for remission or mitigation, a civil asset forfeiture attorney can explain why it might be better to file a claim for court action.
Before you decide, act quickly to contact an attorney so you understand your rights at each stage.
Call 813-250-0500 today.
This article was last updated on Tuesday, November 19, 2024.