Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-2_06-cv-02824/USCOURTS-caed-2_06-cv-02824-3/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, )

) 2:06-CV-02824 WBS-GGH

Plaintiff, ) 

) STIPULATION FOR STAY

v. ) AND ORDER [Proposed]

) 

REAL PROPERTY LOCATED AT 155 ) 

TIGER LILY ROAD, PILOT HILL, ) 

CALIFORNIA, EL DORADO COUNTY, )

APN: 104-100-26-100, ) Date: N/A

INCLUDING ALL APPURTENANCES ) Time: N/A

AND IMPROVEMENTS THERETO, ) Courtroom: N/A 

) 

 Defendant. )

______________________________)

Plaintiff United States of America, and Claimants Donald

Kearney, and MERS, Inc. as nominee for Wells Fargo Bank, N.A.,

the successor in interest to the original claimant herein,

Washington Mutual Bank, [hereafter “Claimants”], by and through

their respective counsel, hereby stipulate that a further stay is

necessary in the above-entitled action, and request that the

Court enter an order staying all further proceedings pending the

outcome of a related criminal case against Claimant Donald

Kearney now pending in El Dorado County. For the reasons set

Case 2:06-cv-02824-WBS-GGH Document 22 Filed 07/27/07 Page 1 of 6
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forth below, the parties request that the stay be extended until

on or about February 15, 2008, to allow time for the completion

of Claimant Kearney's trial which is now scheduled for January

23, 2008. 

1. Claimant Kearney filed a claim to the defendant property

on February 28, 2007, and filed an Answer to the Verified

Complaint For Forfeiture In Rem on March 23, 2007. Claimant

MERS, Inc. filed a claim to the defendant property on February 1,

2007, as nominee for Washington Mutual Bank and filed an Answer

to the Complaint on February 14, 2007. On May 1, 2007, a Notice

of Change of Lender re: Verified Claim of Mortgage Electronic

Registration Systems, Inc. was filed advising the parties that

Wells Fargo Bank N.A. had purchased the loan referenced in the

Verified Claim, and that MERS is now the nominee for Wells Fargo

Bank N.A. in this action. Claimant Kearney is currently a

defendant in People of the State of California v. Donald Kearney,

Case No. PO5CRF0404 in El Dorado County. No other parties have

filed a claim in this forfeiture action.

2. Pursuant to 18 U.S.C. §§ 981(g)(1), 981(g)(2) and 21

U.S.C. § 881(i) the parties seek a stay of discovery in this

case. 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 Claimant

Kearney about the claim he filed in this case and the facts

surrounding the cultivation of more than 800 marijuana plants on

this property. If discovery proceeds, Claimant Kearney would be

placed in the difficult position of either invoking his Fifth

Case 2:06-cv-02824-WBS-GGH Document 22 Filed 07/27/07 Page 2 of 6
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Amendment right against self-incrimination and losing the ability

to protect his alleged interest in the defendant property, or

waiving his Fifth Amendment right and submitting to a deposition

and potentially incriminating himself in the pending criminal

matter. If Claimant invokes his Fifth Amendment right, the

United States will be deprived of the ability to explore the

factual basis for the claim he filed in this action and the

defenses raised in his Answer. 

3. In addition, Claimant Kearney intends to depose law

enforcement officers who were involved in the investigation that

led to the state drug charges. Allowing depositions of these

officers would adversely affect the ability of the county law

enforcement officials to properly prosecute the case.

4. Accordingly, the parties recognize that proceeding with

this action at this time has potential adverse affects on the

prosecution of the related-criminal case and/or upon Claimant

Kearney'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 jointly request that

this matter be stayed until the conclusion of the criminal case

now pending in El Dorado County Superior Court. The Deputy

District Attorney assigned to the case has advised plaintiff's

counsel that Claimant Kearney's trial has been continued to

January 23, 2008. 

5. While this case is stayed, Claimant Kearney agrees to

keep current all payments due to MERS, Inc. under the promissory

note dated March 23, 2005, in the original principal amount of

$156,000, and secured by the deed of trust recorded in El Dorado

Case 2:06-cv-02824-WBS-GGH Document 22 Filed 07/27/07 Page 3 of 6
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County on March 29, 2005, encumbering the defendant property.

6. In the event claimant Kearney defaults in his

obligations to MERS, Inc., claimant Kearney agrees to join any

government motion for interlocutory sale of the defendant

property. The term "default" shall mean any default under the

note and deed of trust encumbering the defendant property and any

other documents executed by Claimant Kearney in connection

therewith.

7. The title report for the defendant property also states

that the defendant is encumbered with an additional deed of trust

securing a promissory note in the amount of $50,000 payable to

Wells Fargo Bank. To date, Wells Fargo Bank has not filed a

claim to the defendant property nor an Answer to the Verified

Complaint for Forfeiture In Rem. Accordingly, at this point

plaintiff is unsure whether Wells Fargo Bank's lien is still

valid. Regardless, claimant Kearney Claimant Kearney agrees to

keep current all payments due to Wells Fargo Bank (if any) under

the promissory note dated June 2, 2004, in the original principal

amount of $50,000, and secured by the deed of trust recorded in

El Dorado County on June 30, 2004, encumbering the defendant

property.

8. In the event claimant Kearney defaults in his

obligations (if any) to Wells Fargo Bank described in ¶ 7, 

claimant Kearney agrees to join any government motion for

interlocutory sale of the defendant property. The term "default"

shall mean any default under the note and deed of trust

//

//

Case 2:06-cv-02824-WBS-GGH Document 22 Filed 07/27/07 Page 4 of 6
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encumbering the defendant property and any other documents

executed by Claimant Kearney in connection therewith.

Dated: July 20, 2007 McGREGOR W. SCOTT

United States Attorney

By /s/Kristin S. Door 

KRISTIN S. DOOR

Assistant U.S. Attorney

Attorneys for Plaintiff

United States of America

Dated: July 20, 2007

/s/ Brenda Grantland 

BRENDA GRANTLAND

Attorney for Claimant 

Donald Kearney

Dated: July 25, 2007 

By /s/Glenn H. Wechsler

GLENN H. WECHSLER

Attorney for claimant

MORTGAGE ELECTRONIC SYSTEMS, INC.

AS NOMINEE FOR WELLS FARGO

BANK, N.A.

Attorney for Claimant 

(Original signatures of claimants'

attorneys retained by plaintiff's

counsel)

ORDER

For the reasons set forth above, this matter is stayed

pursuant to 18 U.S.C. §§ 981(g)(1), 981(g)(2) and 21 U.S.C. §

881(i) until the related criminal case currently pending in state

court is resolved.

//

//

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The scheduling conference scheduled for July 30, 2007 is

continued to February 25, 2008 at 2:00 p.m.

IT IS SO ORDERED.

Dated: July 26, 2007

Case 2:06-cv-02824-WBS-GGH Document 22 Filed 07/27/07 Page 6 of 6