Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-2_07-cv-00975/USCOURTS-caed-2_07-cv-00975-2/pdf.json

Nature of Suit Code: 625
Nature of Suit: Drug Related Seizure of Property
Cause of Action: 21:881 Forfeiture Property - Real Estate

---

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

1

McGREGOR W. SCOTT

United States Attorney

KRISTIN S. DOOR, SBN 84307

Assistant United States Attorney

501 I Street, Suite 10-100

Sacramento, CA 95814

Telephone: (916)554-2723

Attorneys for Plaintiff

United States of America

IN THE UNITED STATES DISTRICT COURT

FOR THE EASTERN DISTRICT OF CALIFORNIA

UNITED STATES OF AMERICA, )

 ) 2:07-CV-975 LKK/KJM

Plaintiff, ) 

 ) JOINT STATUS REPORT AND 

v. ) STIPULATION FOR STAY AND 

 ) ORDER THEREON 

REAL PROPERTY LOCATED AT 1066 )

EATON ROAD, CHICO, CALIFORNIA, ) 

BUTTE COUNTY, APN: 007-250-088, )

INCLUDING ALL APPURTENANCES AND ) DATE: September 17, 2007

IMPROVEMENTS THERETO, ) TIME: 10:30 A.M. 

 ) COURTROOM: #4/Chambers

 Defendant. )

________________________________)

Plaintiff United States of America, claimant Peter Buchanan,

and claimant Kurt and Monica Karst, individually and as the

trustees of the Karst Family Revocable Trust, submit the

following Status Report pursuant to the Court's June 28, 2007,

order. Plaintiff solicited input from claimants James and Tamara

Robertsons’ attorney but received no response. Plaintiff

assumes those claimants will submit a separate report as

authorized in the June 28, 2007, order. 

(a) Parties: The plaintiff is the United States of

America. Claimants James and Tamara Robertson own the defendant

Case 2:07-cv-00975-LKK -KJM Document 17 Filed 09/10/07 Page 1 of 7
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

2

property. Claimants Peter Buchanan and claimants Kurt and Monica

Karst Family Revocable Trust are the beneficiaries of a

promissory note secured by a deed of trust recorded against the

defendant property. 

(b) Summary of Facts and Legal Theories:

The United States alleges this property is subject to

forfeiture to the United States pursuant to 21 U.S.C. § 881(a)(7)

because it was used to facilitate a felony violation of 21 U.S.C.

§ 841. Specifically, on March 29, 2007, deputies from the Butte

County Sheriff’s Department conducted a consensual search of the

defendant property. Claimant James Robertson contends that his

consent to the search was not given voluntarily. Nevertheless,

during the search officers found evidence of an active indoor

marijuana growing operation with approximately 100 plants under

cultivation. Deputies also found 3.5 pounds of processed

marijuana, a digital scale, and packaging material. 

(c) Service of Process: 

 The owners of the defendant property, Tamara and James

Robertson, have been served with the Complaint for Forfeiture In

Rem, Notice of Complaint, Application and Order for Publication,

Lis Pendens, and Court Notices. The Robertsons filed a Claim to

the property on July 31, 2007, but have not yet filed their 

Answers to the Complaint for Forfeiture In Rem. The Answers are

now overdue. 

All lienholders have been served. Claimant Buchanan filed

his Claim on June 27, 2007, and filed his Answer to the Complaint

on July 13, 2007. Claimants Kurst and Monica Karst filed their

claim, individually and as Trustees for the Kurst and Monica

Case 2:07-cv-00975-LKK -KJM Document 17 Filed 09/10/07 Page 2 of 7
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

3

Karst Family Revocable Trust, on June 27, 2007, and filed their

Answer on July 12, 2007. 

On June 28, 2007, the U.S. Marshal posted the Notice of

Complaint and the Complaint on the real property. 

 Accordingly, service is complete. 

In addition, notice of the forfeiture was published five

times in the Chico Enterprise-Record/Oroville Mercury-Register by

the U.S. Marshal. Proof of Publication was filed on August 13,

2007. 

(d) Possible Joinder of Additional Parties:

None contemplated. 

(e) Any Expected or Desired Amendment of Pleadings:

None.

(f) Jurisdiction and Venue: 

The Court has jurisdiction in this matter pursuant to 28 

U.S.C. §§ 1345, 1355. Venue is proper in this district pursuant

to 28 U.S.C. § 1395(b) because the real property that is subject

to forfeiture is located in this district.

(g) Anticipated Motions with Suggested Law and Motion 

Dates:

Although plaintiff anticipates that claimant Robertson will 

file a motion challenging the voluntariness of the consent

search, the parties request that this case not be scheduled at

this time because they are requesting a stay of further

proceedings for six months as explained in the following

paragraph. This Court has already ordered that further

proceedings in a related case, United States v. Real Property

Located at 6874 Almanor Lakes Estates Drive, 2:07-CV-00974

Case 2:07-cv-00975-LKK -KJM Document 17 Filed 09/10/07 Page 3 of 7
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

4

LKK/KJM, be stayed for six months because of an on-going related

criminal investigation, and the parties in the other related case

(United States v. 3077 Nord Avenue, 2:07-1039 LKK) will be asking

this Court for a similar stay.

(h) Anticipated Discovery And The Scheduling Thereof:

Pursuant to 18 U.S.C. §§ 981(g)(1) and 981(g)(2) the parties 

suggest that a stay of further proceedings in this case is

necessary. The United States contends that the defendant real

property was used to facilitate a violation of federal drug laws

(cultivation of marijuana) and is therefore forfeitable to the

United States. The United States intends to depose the claimants

James and Tamara Roberts about the claim they filed in this case

and the facts surrounding the cultivation of marijuana plants on

this property. If discovery proceeds, claimants would be placed

in the difficult position of either invoking their Fifth

Amendment right against self-incrimination and losing the ability

to protect their claimed interest in the defendant property, or

waiving his Fifth Amendment rights and submitting to depositions

and potentially incriminating themselves in the pending criminal

matter. If claimants invoke their Fifth Amendment rights, the

United States will be deprived of the ability to explore the

factual basis for the claims they filed in this action and any

defenses they may raise in their Answer. 

In addition, the United States contends that

claimants/lienholders Buchanan and the Karsts were involved with

the Robertsons in the marijuana operation, or at a minimum, knew

that the Robertsons were growing marijuana. Accordingly, the

United States intends to depose the claimants/lienholders. They

Case 2:07-cv-00975-LKK -KJM Document 17 Filed 09/10/07 Page 4 of 7
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

5

have the same Fifth Amendment concerns as the Robertsons. 

In addition, all claimants intend to depose law enforcement

officers who were involved in the investigation that led to the

search at the defendant property. Allowing depositions of these

officers would adversely affect the ability of the United States

to conduct its related criminal investigation. 

 Accordingly, the parties contend that proceeding with this

action at this time has potential adverse affects on the

investigation and possible prosecution of the related-criminal

case and/or upon claimants’ ability to prove their claim to the

property and to contest the government's allegations that the

property is forfeitable. For these reasons, the parties request

that this matter be stayed for a period of six months. At that

time the parties will advise the Court whether a further stay is

necessary.

(i) Further Proceedings, Suggested Case Schedule:

The parties request that the case not be scheduled at this

time. 

(j) Special Proceedings:

None.

(k) Demand For Jury Trial:

Claimants James and Tamara Robertson’s Answer is overdue and

to date no demand for a jury trial has been made. The

claimants/lienholders have made a timely demand for a jury trial. 

(l) Estimate of Trial Time:

No more than 4 court days.

(m) Modification of Standard Pretrial Procedures:

None.

Case 2:07-cv-00975-LKK -KJM Document 17 Filed 09/10/07 Page 5 of 7
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

6

(n) Related Matters:

The following cases are related:

1. United States v. Real Property Located at 6874 Almanor Lakes

Estates Drive, 2:07-974 LKK/KJM.

2. United States v. 3077 Nord Avenue, 2:07-1039 LKK/KJM.

A Notice of Related Cases was filed on June 15, 2007, and

all cases are assigned to this Court. 

(o) Settlement Judge:

The government requests that another judge be assigned as

the settlement judge. 

(p) Use of the Voluntary Dispute Resolution Program:

The parties do not believe VDRP is appropriate in this case.

(q) Other matters:

Counsel for the government has been advised that the

Robertsons have stopped making payments on the promissory note. 

Under these circumstances, the United States intends to seek an

stipulation permitting the interlocutory sale of the property. 

If the parties will not stipulate, the United States will seek an

order from this court permitting a sale. Upon the sale of the

property the net proceeds will be substituted as the res in this

action. Because the United States disputes that the lienholders

are innocent owners within the meaning of 18 U.S.C. § 983(d),

//

//

Case 2:07-cv-00975-LKK -KJM Document 17 Filed 09/10/07 Page 6 of 7
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

7

their claims would not be paid out of escrow. Those funds would

also be substituted as the res in this action.

DATED: Sept. 7, 2007 McGREGOR W. SCOTT 

United States Attorney

By: /s/ Kristin S. Door KRISTIN S. DOOR

DATED: Sept. 7, 2007 BLACKMON & ASSOCIATES

By /s/ Melinda J. Nye

MELINDA J. NYE

Attorney for claimant

Peter Buchanan

DATED: Sept. 7, 2007 /s Brenda Grantland

BRENDA GRANTLAND

Attorney for claimants

Kurt and Monica Karst

Individually and as the 

Trustees of the Karst Family

Revocable Trust

ORDER

For the reasons set forth above, this matter is stayed

pursuant to 18 U.S.C. §§ 981(g)(1) and 981(g)(2) until March 15,

2008. The parties will advise the court at least 10 days prior

to March 15, 2008, whether a further stay is necessary. 

The scheduling conference scheduled for September 17, 2007

is hereby vacated.

IT IS SO ORDERED.

Dated: September 10, 2007.

Case 2:07-cv-00975-LKK -KJM Document 17 Filed 09/10/07 Page 7 of 7