Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-2_01-cv-02127/USCOURTS-caed-2_01-cv-02127-10/pdf.json

Nature of Suit Code: 625
Nature of Suit: Drug Related Seizure of Property
Cause of Action: 28:1345 Replevin &amp; Conversion

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1

McGREGOR W. SCOTT

United States Attorney

COURTNEY J. LINN

Assistant U.S. Attorney

501 I Street, Suite 10-100

Sacramento, California 95814

Telephone No. (916) 554-2700

IN THE UNITED STATES DISTRICT COURT FOR THE

EASTERN DISTRICT OF CALIFORNIA

UNITED STATES OF AMERICA, ) 2:01-CV-02127-LKK-GGH

)

Plaintiff, ) FINAL JUDGMENT

) OF FORFEITURE

v. )

)

REAL PROPERTY LOCATED AT 18025)

NORTH QUARTZ MOUNTAIN ROAD, )

AMADOR COUNTY, FIDDLETOWN, )

CALIFORNIA, APN:015-320-019- )

000, INCLUDING ALL )

APPURTENANCES AND IMPROVEMENTS) 

THERETO, )

)

Defendant. )

 )

Pursuant to the Stipulation for Final Judgment of Forfeiture

filed herein, the Court finds: 

1. This is a civil forfeiture action against certain real

property listed in the caption above. The real property is more

particularly described as: 18025 N. Quartz Mountain Road, Amador

County, Fiddletown, California, APN: 015-320-019-000, legal

description:

BEGINNING at the Southwest corner of that

certain Record of Survey for Amador Investment

Company, a limited partnership, a portion of

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Section 8, Township 7 North, Range 11 East,

recorded August 7, 1969, in Book 15 of Maps and

Plats, page 39, Records of Amador County, also

being the Southwest corner of Section 8,

Township 7 North, Range 11 East, thence North

00E 26' 58" West 1888.74 to the Northwest corner

of said parcel; thence South 88E 44' 14" East

902.85' to the centerline of the Fiddletown

Quartz Mountain Road; thence Southerly along the

centerline of said road to the following

distances:

1) South 18E 15' West, 165 feet;

2) South 33E 15' West, 140 feet;

3) South 23E 15' West, 175 feet;

4) South 18E 05' West, 140 feet;

5) South 34E 00' West, 140 feet;

6) South 13E 00' West, 145 feet;

7) South 04E 50' East; 75 feet;

8) South 04E 50' East; 25 feet;

9) South 73E 00' East; 70 feet;

10) South 49E 45' East; 165 feet;

11) South 58E 00' East, 150 feet;

12) South 40E 30' East, 70 feet;

13) South 19E 00' East, 75 feet;

14) South 03E 45' West, 300 feet;

15) South 05E 53' 46" East, 361.86 feet, to the

South boundary of said Record of Survey; thence

North 88E 44' 10" West 950 feet to point of

beginning.

The recorded property owners are the Claimants William A. Lockyer

and William F. Olson, as joint tenants. 

2. The United States filed a Complaint for Forfeiture In Rem

on November 20, 2001, seeking to forfeit the defendant real

property. The Complaint alleges, inter alia, that said real 

property is subject to forfeiture to the United States of America

pursuant to 21 U.S.C. § 881(a)(7). 

3. On December 5, 2001, the defendant real property was posted

with a copy of the Warrant of Arrest In Rem.

4. On December 26, 2001, a Public Notice of Arrest and Seizure

of the defendant real property appeared by publication in The Amador

Ledger Dispatch, a newspaper of general circulation in the county in

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28 CitiMortgage, Inc. is successor by merger to First Nationwide 1

Mortgage Corporation. 

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which defendant real property is located (Amador County).

5. In addition to the Public Notice of Posting having been

completed, actual notice was acknowledged by the following:

a. William A. Lockyer

b. William F. Olson

c. First Nationwide Mortgage Corporation1

6. William A. Lockyer, William F. Olson, and CitiMortgage,

Inc., successor by merger to First Nationwide Mortgage Corporation,

filed verified claims alleging an interest in the defendant real

property. No other parties have filed claims in this matter, and

the time for which any person or entity may file a claim and answer

has expired.

7. On September 30, 2004, the Court entered a Final Judgment

of Forfeiture in this action. Thereafter, on February 1, 2006, the

Court set aside the judgment. 

8. At a settlement conference held on April 3, 2006, the

United States and Claimants Lockyer and Olson settled the case and

placed the terms of the settlement on the record. 

9. No other parties have filed claims or answers in this

matter, and the time for which any person or entity may file a claim

and answer has expired.

Based on the above findings, and the Court being otherwise

fully advised in the premises, it is hereby 

ORDERED AND ADJUDGED:

10. The Court adopts the Stipulation for Final Judgment of

Forfeiture entered into by and between the parties to this action.

11. Claimants William A. Lockyer and William F. Olson shall

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pay the sum of $105,000.00 to the United States of America, which

sum shall be substituted for the defendant real property and

forfeited to the United States as the res herein, to be disposed of

as provided for by law. Said payments shall be made to the U.S.

Marshals Service, and shall be mailed to the U.S. Attorney’s Office,

Asset Forfeiture Unit, 501 I Street, Suite 10-100, Sacramento,

California 95814. Said payments shall be made on the following

terms: 

(a) A sum of $45,000.00 shall be paid by cashier’s

check within thirty (30) days of the settlement

conference held on April 3, 2006, or within one

week from the date Claimants receive

approximately $102,011.87 in funds remitted by

the Drug Enforcement Administration ("DEA") in

connection with a parallel administrative

forfeiture proceeding, whichever event occurs

later. 

(b) A sum of $60,000.00 shall be paid by cashier’s

or personal checks to the United States over a

period of sixty months in equal installments of

$1,000.00 due on the first business day of each

month, beginning with the first full month after

the entry of judgment in this case. No interest

shall accrue on this sum. 

12. Until such time as all payments contemplated above are

made in full, claimants Lockyer and Olson shall not convey,

transfer, encumber, lien, or otherwise pledge the defendant real

property without the written consent of the United States, which

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consent shall not be unreasonably withheld, particularly in

circumstances where Claimants determine to sell the property and

satisfy any obligations to the United States from the sales

proceeds. The United States shall retain a security interest in the

defendant property junior to the present mortgage or lien holder’s

interest. In the event that Claimants Lockyer and Olson fail to

make any timely payments described in ¶ 11.a-b above, or in the

event that Claimants Lockyer and Olson default on their loan

obligations to CitiMortgage, Inc., the United States and/or

CitiMortgage, Inc. shall give written notice of default to Lockyer

and Olson by first class mailing sent to their counsel of record in

this matter and to the address of the defendant real property, and

to Citimortgage, Inc. and/or the United States. If Lockyer and

Olson are unable or unwilling to cure the default within thirty days

after their counsel or Lockyer and Olson receives such notice, then

the U.S. Marshals Service shall market and sell the defendant real

property without any further order of the Court based on the

following terms: 

(a) The U.S. Marshals Service shall list the

defendant real property for sale with a licensed

real estate broker or by any other commercially

reasonable means. The U.S. Marshals Service

shall have sole authority to handle the

marketing and sale of the defendant real

property.

(b) The U.S. Marshals Service shall have the real

property appraised by a licensed appraiser of

its choosing. The U.S. Marshals Service and the

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appraiser may have access to the defendant real

property and structures, buildings, or storage

sheds thereon upon 24 hours telephonic notice. 

(c) If necessary, the U.S. Marshals Service, and the

real estate broker or designee of the U.S.

Marshals Service, shall have the right to put a

"lock box" on the property to facilitate the

marketing and sale of the property.

(d) The following costs and expenses shall be paid

in escrow from the gross sales price in the

following priority and to the extent funds are

available:

(i) The costs incurred by the U.S. Marshals 

Service to the date of close of escrow,

including the cost of arrest, advertising,

maintenance, and sale of the property, including

but not limited to realtor fees;

(ii) To Amador County, any unpaid real property

taxes which shall be prorated as of the date of

entry of the Final Judgment of Forfeiture; 

(iii) To CitiMortgage, Inc., successor by merger

to First Nationwide Mortgage Corporation, under

the Note secured by a Deed of Trust dated

September 17, 1992, recorded on October 8, 1992,

as Instrument No. 010614, in the official

records of Amador County, California, at the

time of the sale of the defendant real property,

the following: The sum of $74,469.61 less any

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principal payments made between September 1,

2004, and the date of payment, plus all accrued

interest, advances for property taxes and

insurance, and costs and fees, including

attorney’s fees, due under the promissory note

held by claimant CitiMortgage, Inc., except for

prepayment or other similar penalty payments. 

Interest shall be computed at the regular

contractual rate, not at the default rate; and a

total fee of not more than $200 to process a

beneficiary demand statement and to record a

reconveyance of the deed of trust. The exact

amount to be paid to claimant CitiMortgage,

Inc., successor by merger to First Nationwide

Mortgage Corporation, shall be determined at the

time of payment.

(iv) A real estate commission not to exceed the

U.S. Marshals Service contractual brokerage fee;

(v) Any county transfer taxes;

(vi) The total amount set forth in ¶ 11 that

remains unpaid at the time of the sale, after

deducting the cost and expenses identified in ¶¶

12.d(i)-(v), shall be forfeited to the United

States, to be disposed of as provided by law. 

(vii) Any liens or encumbrances against

defendant real property that appear on record

subsequent to the recording of plaintiff’s Lis

Pendens on November 21, 2001, may be paid out of

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escrow.

(viii) All amounts remaining after deducting the

expenses set forth in ¶¶ 12.d(i)-(vii) shall be

paid to claimants Lockyer and Olson. 

(e) The costs of a lender's policy of title

insurance (ALTA policy) shall be paid for by the

buyer.

(f) All loan fees, "points" and other costs of

obtaining financing shall be paid for by the

buyer of the defendant property.

(g) Each party to the stipulation for final judgment

shall execute all documents necessary to close

escrow, if such signatures are required.

(h) The defendant real property shall not be sold

for less than an amount sufficient to pay the

costs and expenses identified in ¶ 11.a-b and

¶¶ 12.d(i)-(v) above. 

13. Until the discharge of Lockyer and Olson’s obligations,

or, in the case of default, the sale of the property under the terms

of ¶ 12, claimants William A. Lockyer and William F. Olson shall

maintain the defendant real property in the same condition and

repair as existed as of the date of the entry of the judgment,

normal wear and tear excepted, until they have vacated the premises. 

The term "maintain" shall include, but is not limited to, keeping

the property free of hazard and structural defects; keeping all

heating, air conditioning, plumbing, electrical, gas, oil, or other

power facilities in good working condition and repair; keeping the

property clean and performing such necessary sanitation and waste

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removal; keeping the property in good condition by providing for

lawn and yard maintenance; and other ordinary and necessary items of

routine maintenance.

14. Until the discharge of Lockyer and Olson’s obligations,

or, in the case of default, the sale of the property under the terms

of ¶ 12, claimants William A. Lockyer and William F. Olson shall

maintain all mortgage payments and insurance policies currently in

effect with respect to the property, including policies covering

liability to persons injured on said property and for property

damage to the defendant real property. Claimants William A. Lockyer

and William F. Olson shall arrange for the inclusion of a rider to

all of the above-mentioned policies naming the U.S. Marshals Service

as the additional insured of the insurance policy.

15. In the event of default and the initiation of sale

proceedings under the terms of ¶ 12, claimants William A. Lockyer

and William F. Olson shall allow the U.S. Marshals Service

personnel, or its agent, the right to enter and inspect the property

and all buildings thereon on a monthly basis upon twenty-four (24)

hours telephonic notice.

16. In the event of default and the initiation of sale

proceedings under the terms of ¶ 12, Claimants William A. Lockyer

and William F. Olson shall vacate the defendant real property within

thirty (30) days prior to the close of escrow. Claimants further

shall remove all of their personal possessions, and the personal

possessions of any former occupant, including all vehicles,

furniture, and trash, and leave the property clean and in the same

state of repair as the property was on the date it was posted. Any

and all of claimant's personal possessions, and the personal

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possessions of any former occupant, not removed within thirty (30)

days prior to the close of escrow will be disposed of by the United

States without further notice. Any cost incurred by the United

States to evict claimants or for disposal of personal possessions

shall be deducted from the amount set forth in ¶ 12.d(viii) above.

17. Claimants William A. Lockyer and William F. Olson hereby

release plaintiff United States of America and its servants, agents,

and employees and Amador County, from any and all liability,

including but not limited to liability under the Federal Tort Claims

Act, arising out of the execution of the search warrant at the

defendant real property in 2001; the initiation and prosecution of

this forfeiture action; and the United States’ custody of the

defendant real property following the entry of the Final Judgment of

Forfeiture in September 2004 up through the entry of the Order in

February 2006 setting such Final Judgment of Forfeiture aside. This

is a full and final release applying to all unknown and

unanticipated injuries, and/or damages arising out of said posting,

forfeiture, or sale, as well as to those now known or disclosed. 

The parties to this agreement agree to waive the provisions of

California Civil Code § 1542, which provides: "A general release

does not extend to claims which the creditor does not know or

suspect to exist in his favor at the time of executing the release,

which if known by him must have materially affected his settlement

with the debtor."

18. Claimants William A. Lockyer and William F. Olson 

agree to release plaintiff United States of America and its

servants, agents, and all other federal entities, their servants,

agents, and employees, from any and all liability arising out of or 

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in any way connected to the parallel administrative forfeitures,

including but not limited to: 

(a) Any claim to interest on the $102,011.87 funds

seized by the DEA that is in the process of

being returned to claimants. 

(b) Any further claims against any and all

additional funds that may have been or were

administratively forfeited to the United States.

This is a full and final release applying to all unknown and

unanticipated injuries, and/or damages arising out of said posting,

forfeiture, or sale, as well as to those now known or disclosed. The

parties to this agreement agree to waive the provisions of

California Civil Code § 1542, which provides: "A general release

does not extend to claims which the creditor does not know or

suspect to exist in his favor at the time of executing the release,

which if known by him must have materially affected his settlement

with the debtor."

19. Claimants Lockyer and Olson shall bring the note with 

CitiMortgage, Inc. current by paying any past due principal and

interest on the note and advances for property taxes and insurance

within thirty (30) days of the settlement conference held on April

3, 2006, or within one week from the date Claimants Lockyer and

Olson receive the $102,011.87 funds remitted by the DEA with respect

to one of the administrative forfeitures, whichever occurs later. 

CitiMortgage, Inc. agrees to waive all unpaid late fees and

penalties accrued up to the time of the required reinstatement of

the loan by Lockyer and Olson as set forth in this paragraph.

20. Claimants Lockyer, Olson and CitiMortgage, Inc. agree that

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the total amount of attorneys’ fees incurred by CitiMortgage, Inc.

through the date of the entry of final judgment in this case and

added to the note and deed of trust shall not exceed $8,500.00; and

that said attorneys’ fees shall be due and owing on the maturity

date provided for in the note; and that said attorneys’ fees shall

not accrue interest. Except as specifically provided in this Final

Judgment of Forfeiture, all terms and provisions of the note, deed

of trust, and all related loan documents shall remain in full force

and effect without modification, novation, or amendment. In the

event of default under the terms of the note and deed of trust at a

time when Lockyer and Olson have yet to fulfill all of their

obligations to the United States, however, CitiMortgage, Inc.’s sole

recourse shall be to force a sale under the terms of ¶ 12 above by

giving notice, and by giving Lockyer and Olson an opportunity to

cure, as provided in such paragraph. Until such time as Claimant

Lockyer and Olson fully satisfy their obligations to the United

States under this agreement in full, CitiMortgage, Inc., or its

successor, may not proceed with foreclosure on the defendant real

property either judicially or nonjudicially as provided for under

the terms of the note and deed of trust and California Civil Code §

2924 et seq. 

21. As stated above, Claimants Lockyer and Olson bear sole

responsibility for any property taxes that may have accrued on the

defendant real property. However, in any proceeding in which

Lockyer and Olson and/or CitiMortgage, Inc. may contest property

taxes assessed against the defendant real property, the United

States shall communicate to the County of Amador its position that:

(a) the United States held title to the property from September 30,

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2004, (the date the Final Judgment of Forfeiture was filed) in this

case until the case was reopened on February 1, 2006; and (b) that

during such period of time, the County of Amador could not lawfully

impose a property tax on the United States. 

22. In connection with the obligations of the Claimants with

regard to the note and deed of trust and the requirements to

CitiMortgage, Inc. under this agreement, CitiMortgage, Inc. shall

designate within 30 days of the entry of the Final Judgment of

Forfeiture an officer or employee of CitiMortgage, Inc. with whom

Claimants Lockyer and Olson may communicate and who will be

knowledgeable with respect to the foresaid obligations. 

23. All parties are to bear their own costs and attorneys’

fees, including any costs and fees incurred in connection with any

post-judgment proceedings, and in connection with any proceedings

involving the parallel administrative forfeitures, except as

otherwise specifically provided for herein. 

24. Pending full payment of the amounts set forth herein, as

described in ¶¶ 11-12 above, the Court shall maintain jurisdiction

to enforce the terms of the Final Judgment of Forfeiture. Upon full

payment of the amounts set forth herein, the United States shall

cause any and all lis pendens that it has recorded against the

defendant real property to be removed, and shall not seek any

further forfeiture of the real property based on the events giving

rise to this action. 

25. Except as specifically set forth above, nothing in this

Final Judgment of Forfeiture or the Stipulation for Final Judgment

of Forfeiture filed May 3, 2006, is meant to affect any adjustments

///

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in the rights and responsibilities between Claimants Lockyer, Olson

and CitiMortgage, Inc.

SO ORDERED THIS 8th day of May, 2006.

/s/Lawrence K. Karlton 

LAWRENCE K. KARLTON

Senior Judge

United States District Court

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