Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-2_07-cv-01712/USCOURTS-caed-2_07-cv-01712-3/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-01712-FCD-EFB

 )

Plaintiff, ) STIPULATION FOR EXPEDITED

 ) SETTLEMENT BETWEEN PLAINTIFF

v. ) UNITED STATES OF AMERICA AND

 ) LIEN HOLDERS STEVEN G.

REAL PROPERTY LOCATED AT 6000 ) GENERAUX AND LENORE M.

CHINA GRADE ROAD, HAPPY CAMP, ) GENERAUX AND ORDER THEREON

CALIFORNIA, SISKIYOU COUNTY, )

APN: 016-290-480-000, INCLUDING )

ALL APPURTENANCES AND )

IMPROVEMENTS THERETO, )

 )

 Defendant. ) )

IT IS HEREBY STIPULATED by and between plaintiff United

States of America and claimants Steven G. Generaux and Lenore M.

Generaux (hereafter “Claimants”) through their respective counsel

of record, that Claimants have a valid pre-existing mortgage lien

on the defendant real property described in this Stipulation,

which is not contested by plaintiff. 

Plaintiff United States of America and Claimants further

stipulate that:

1. Any violation of 21 U.S.C. § 881(a)(7) involving the

defendant real property located at 6000 China Grade Road, Happy

Case 2:07-cv-01712-FCD-EFB Document 23 Filed 03/06/08 Page 1 of 6
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Camp, California, Siskiyou County, APN: 016-290-480-000, occurred

without Claimants’ knowledge and consent.

2. Plaintiff United States agrees that upon entry of a

Final Judgment of Forfeiture in favor of the United States,

plaintiff, through the United States Marshals Service or its

agent(s), shall undertake to sell the defendant real property in

a commercially reasonable manner and to sell said property for

fair market value (the "Purchase Price"). The following costs

and expenses of sale shall be deducted from the Purchase Price

and paid directly out of escrow in the following order:

(a) First, the costs incurred by the United States

Marshals Service to the date of close of escrow, including the

cost of posting, service, advertising, and maintenance;

(b) Second, to the Siskiyou County Tax Collector for

all real property taxes assessed and unpaid against the defendant

real property prorated to the date of entry of the Final Judgment

of Forfeiture;

(c) Third, the costs and expenses associated with the

sale of the defendant real property.

(d) Fourth, any county transfer taxes.

(e) Fifth, to Claimants as the lender on the deed of

trust encumbering the defendant real property, as follows:

(i) all unpaid principal due to Claimants under

the Promissory Note dated November 7, 2005, in the original

principal amount of $79,500.00, a true and correct copy of which

is attached hereto as Exhibit "A" ("Note"), and which is secured

by a Deed of Trust dated November 7, 2005, recorded November 22,

2005, as instrument number DOC-05-0019049 of the Official Records

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of Siskiyou County, California ("Deed of Trust"), a true and

correct copy of which is attached hereto as Exhibit "B". As of

August 22, 2007, the principal amount owed to Claimants pursuant

to the Note was $14,025.40. 

(ii) all unpaid interest due as of the date of

the closing of the sale of the defendant real property at the

contractual (not default) rate under the above-referenced Note

and Deed of Trust until the date of payment;

(iii) all fees, costs, and advances, including but

not limited to reasonable attorney fees, prepayment fees, taxes

and hazard insurance as provided under the terms of the Note and

Deed of Trust.

3. The payment to Claimants shall be in full settlement

and satisfaction of any and all claims by Claimants to the

defendant real property and all claims resulting from the

incidents or circumstances giving rise to this lawsuit.

4. Upon payment in full as set forth in ¶ 2(e)(i)-(iii),

above, Claimants agree to reconvey their interest in the

defendant real property via recordable documents and cause those

to be recorded, and to release and hold harmless the United

States, and any agents, servants, and employees of the United

States, (or any state or local law enforcement agency) acting in

their individual or official capacities, from any and all claims

by Claimants and their agents which currently exist or which may

arise as a result of the government’s action against the real

property.

5. In the event it is determined that the proceeds from

the sale of the defendant real property would be insufficient to

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pay Claimants in full as set forth in ¶ 2(e)(i)-(iii), above,

after the disbursements described in ¶ 2 (a)-(d) here in above

are made, the plaintiff United States agrees to release its

interest in the defendant real property and consent to the

exercise of Claimants’ state law rights to foreclose upon its

deed of trust which secures the obligation to Claimants. 

Plaintiff shall not enter into a binding agreement to sell the

defendant real property unless the proceeds of such sale are

sufficient to pay Claimants in full as set forth in ¶ 2(e)(i)-

(iii), unless Claimants otherwise consent in writing.

6. Claimants agree not to pursue against the United States

any other rights that it may have under the mortgage instrument,

including, but not limited to, the right to initiate a

foreclosure action without the consent of the United States

Attorney’s Office or this Court.

7. Claimants agree to notify the United States Attorney at

the end of the first payment cycle in which a payment in not made

under the terms specified in the security instrument and

promissory note. Claimants further agree to join any government

motions for interlocutory or stipulated sale of the defendant

real property if the proceeds of such sale will be sufficient to

pay Claimants in full as set forth in ¶ 2(e)(i)-(iii), and any

motions to remove occupants from the property for nonpayment of

mortgage or rent, destruction of property, or other just cause.

8. Claimants understand and agree that by entering into

this stipulation regarding their interest in the defendant real

property, they waive any rights to further litigate against the

United States concerning their interest in the defendant real

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property and to petition for remission or mitigation of the

forfeiture. Unless otherwise provided by this Stipulation or

specifically directed by order of this Court, Claimants are

hereby excused and relieved from further participation in this

action.

9. Claimants understand and agree that the United States

reserves the right to void the expedited settlement agreement if,

before payments of the mortgage or lien, the U.S. Attorney

obtains new information indicating that the mortgagee or lien

holder is not an "innocent owner" or "bona fide purchaser"

pursuant to applicable forfeiture statutes. The U.S. Attorney

also reserves the right, in its discretion, to terminate the

forfeiture at any time and release the subject property. In

either event, the United States shall promptly notify the

mortgagee or lien holder of such action. A discretionary

termination of forfeiture shall not be a basis for any award of

fees under 28 U.S.C. § 2465. 

10. The parties agree to execute further documents, to the

extent necessary, to convey clear title to the defendant real

property to the United States and to further implement the terms

of this stipulation.

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11. The terms of this Stipulation are contingent upon 

forfeiture of the defendant real property to the United States

and the Court’s entry of a Final Judgment of Forfeiture.

Dated: 3/03/08 McGREGOR W. SCOTT

United States Attorney

 /s/ Kristin S. Door KRISTIN S. DOOR

Assistant Unites States Attorney

Attorney for Plaintiff

Dated: 2/25/08 

 /s/ Larry M. Davidson 

LARRY M. DAVIDSON

Attorney for Lienholders 

Steven G. Generaux and 

Lenore M. Generaux

(Original signature retained by

 Attorney)

ORDER

This Stipulation for Expedited Settlement is hereby APPROVED.

Dated: March 6, 2008

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