Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-2_07-cv-01039/USCOURTS-caed-2_07-cv-01039-2/pdf.json

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

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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-1039 LKK/KJM

Plaintiff, ) 

 ) JOINT STATUS CONFERENCE 

v. ) REPORT AND STIPULATION FOR 

 ) STAY AND ORDER THEREON

REAL PROPERTY LOCATED AT 3077 )

NORD AVENUE, CHICO, CALIFORNIA, ) 

BUTTE COUNTY, APN: 042-050-047, )

INCLUDING ALL APPURTENANCES AND )

IMPROVEMENTS THERETO, )

 )

 Defendant. )

 _______________________________)

Plaintiff United States of America submits the following

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

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

America. Claimant Peter Buchanan owns the defendant property and

claimants Arlus and Paris Moore 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. §

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 881(a)(7) because it was used to facilitate a felony violation

of 21 U.S.C. § 841. Specifically, on March 26, 2007, a search

warrant was executed at the defendant property and officers found

an active indoor marijuana growing operation with approximately

96 plants under cultivation. 

(c) Service of Process: 

 The owner of the defendant property, Peter Buchanan, has

been served with the Complaint for Forfeiture In Rem, Notice of

Complaint, Application and Order for Publication, Lis Pendens,

and Court Notices. Buchanan filed a Claim to the property and

has filed his Answer to the Complaint for Forfeiture In Rem. 

Arlus and Paris Moore, who are lienholders, have also been

served. The Moores filed their Claim on June 20, 2007, but have

not yet filed their Answer to the Complaint. The Moores will

file their Answer on or before September 13, 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 

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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:

The government requests that this case not be scheduled at

this time because it is 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 LKK/KJM, be stayed for six

months because of an on-going related criminal investigation.

(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 claimant

Peter Buchanan about the claim he filed in this case and the

facts surrounding the cultivation of marijuana plants on this

property. If discovery proceeds, claimant would be placed in the

difficult position of either invoking his Fifth Amendment right

against self-incrimination and losing the ability to protect his

claimed interest in the defendant property, or waiving his Fifth

Amendment rights and submitting to depositions and potentially

incriminating himself in the pending criminal matter. If

claimant invokes his Fifth Amendment rights, the United States

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will be deprived of the ability to explore the factual basis for

the claims he filed in this action and the defenses raised in his

Answer. 

In addition, claimant Buchanan intends to depose law

enforcement officers who were involved in the investigation that

led to the execution of the state search warrant 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 claimant Buchanan’s ability to prove his 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:

Claimant Buchanan 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:

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None.

(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. 1066 Eaton Road, 2:07-975 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:

While this case is stayed claimant Buchanan agrees to keep

current all payments due to Arlus and Paris Moore under the

promissory note dated October 14, 2003, in the original principal

amount of $370,800, and secured by the deed of trust recorded in

Butte County on October 24, 2003, encumbering the defendant

property.

If claimant Buchanan defaults on the payments, as default is

defined in the promissory note, Buchanan agrees not to oppose the 

interlocutory sale of the defendant property if such a sale is

requested by the lienholder/claimants Arlus and Paris Moore. If

the lienholder/claimants request that the property be sold, they

agree to waive their right to the prepayment penalty provided for

in the promissory note. Upon the sale of the property the net

proceeds will be substituted as the res in this action. 

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DATED: Sept. 7, 2007 McGREGOR W. SCOTT 

United States Attorney

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

DATED: Sept. 6, 2007 BLACKMON & ASSOCIATES

By /s/ Melinda J. Nye

MELINDA J. NYE

Attorney for claimant

Peter Buchanan

DATED: Sept. 6, 2007 JACOBS, ANDERSON, POTTER

AND CHAPLIN, LLP

By /s/ Douglas B. Jacobs

DOUGLAS B. JACOBS

Attorney for claimants

Arlus and Paris Moore

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.

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