Document ID: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-2_07-cv-00983/USCOURTS-caed-2_07-cv-00983-2/pdf.json

Parties Involved:
Butte Community Bank
Claimant
Real Property located at 6893 Lunar Lane, Paradise, California
Defendant
United States of America
Plaintiff

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McGREGOR W. SCOTT

United States Attorney

KRISTIN S. DOOR SBN 84307

Assistant U.S. Attorney

501 I Street, Suite 10-100

Sacramento, CA 95814

Telephone: (916) 554-2723

Attorney for Plaintiff

IN THE UNITED STATES DISTRICT COURT FOR THE 

EASTERN DISTRICT OF CALIFORNIA

UNITED STATES OF AMERICA, ) No. 2:07-cv-00983-MCE-GGH

)

Plaintiff, ) 

) 

v. ) FINAL JUDGMENT OF

) FORFEITURE

REAL PROPERTY LOCATED AT )

6893 LUNAR LANE, PARADISE, ) 

CALIFORNIA, BUTTE COUNTY, )

APN: 050-120-098, INCLUDING )

ALL APPURTENANCES AND )

IMPROVEMENTS THERETO, )

)

 Defendant. )

______________________________)

Pursuant to the Stipulation for Final Judgment of

Forfeiture, the Court finds:

1. This is a civil forfeiture action against certain real

property located at 6893 Lunar Lane, Butte County, Paradise,

California, APN: 050-120-098 (hereinafter referred to as the

"defendant real property") and more particularly described in

Exhibit A, attached hereto and incorporated herein by reference.

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Case 2:07-cv-00983-MCE -GGH Document 18 Filed 10/23/07 Page 1 of 9
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2. A Complaint for Forfeiture In Rem was filed on May 24,

2007, seeking the forfeiture of the defendant real property,

alleging that said property is subject to forfeiture to the

United States of America pursuant to 21 U.S.C. § 881(a)(7). 

3. On June 28, 2007, the defendant real property was posted

with a copy of the complaint and notice of complaint.

4. On July 10, 17, 24, and 31, 2007, a Public Notice of

Posting of the defendant real property appeared by publication in

The Oroville Mercury-Register, a newspaper of general circulation

in the county in which the defendant real property is located

(Butte County).

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

completed, actual notice or attempted notice was acknowledged by

the following:

a. Patricia L. Hatton

b. Butte Community Bank

6. Butte Community Bank has filed a verified claim and

answer alleging an interest in the defendant real property. 

Patricia L. Hatton has filed an Acknowledgment of Property

Ownership alleging that she is the legal owner of the defendant

real property. 

7. 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

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ORDERED AND ADJUDGED:

1. That the Court adopts the Stipulation for Final Judgment

of Forfeiture entered into by and between the parties to this

action. 

2. That judgment is hereby entered against claimants

Patricia L. Hatton and Butte Community Bank and all other

potential claimants.

3. The U.S. Marshals Service shall list the defendant real

property for sale. The U.S. Marshals Service shall have sole

authority to select the means of sale, including sale by internet

or through a licensed real estate broker, and shall have sole

authority over the marketing and sale of defendant real property.

4. The U.S. Marshals Service shall have the defendant real

property appraised by a licensed appraiser of its choosing. The

U.S. Marshals Service and the appraiser may have access to the

defendant real property and structures, buildings, or storage

sheds thereon upon 24 hours telephonic notice. 

5. If necessary, the U.S. Marshals Service, and any real

estate broker employed by 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. 

6. The following costs, expenses and distributions shall be

paid in escrow from the gross sales price in the following

priority and to the extent funds are available:

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

Service to the date of close of escrow,

including the cost of posting, service,

advertising, and maintenance.

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(b) Any unpaid real property taxes, which

shall be prorated as of the date of the

entry of the Final Judgment of

Forfeiture.

(c) A real estate commission not to exceed the

U.S. Marshals Service contractual brokerage

fee.

(d) The seller shall pay any county transfer

taxes.

(e) To the Butte Community Bank, a sum to satisfy

an indebtedness under the Deed of Trust

recorded in the official records of Butte

County as instrument number 1999-0009936 on

March 9, 1999, in the original amount of

$50,000.00 plus all unpaid interest at the

contractual (not default) rate, plus any

advances and costs incurred by Butte

Community Bank up to the date of the payoff

of the loan, including, but not limited to

any insurance advances, tax advances, and

property preservation costs. As of June 26,

2007, the principal due and owing under the

Note was $44,859.62 and the interest due and

owing was $233.64. The total amount due

under the contractual terms of the Note as of

June 26, 2007 was $45,093.26. Attorneys fees

in an amount not to exceed $3000 shall also

be paid to Butte Community Bank. 

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The exact amount to be paid to Butte

Community Bank shall be determined at time of

payment.

(f) To the United States of America: 80% of the

net proceeds from the sale of the real

property. All right, title, and interest in

said funds shall be substituted for the

defendant real property and forfeited to the

United States pursuant to 21 U.S.C. §

881(a)(7), to be disposed of according to

law. 

(g) To claimant Patricia L. Hatton 20% of the net

proceeds from the sale of the real property.

7. Any liens or encumbrances against the defendant

real property that appear on record subsequent to the recording

of plaintiff's lis pendens on May 30, 2007, and prior to the

close of escrow may be paid out of escrow.

8. The costs of a lender's policy of title insurance

(ALTA policy) shall be paid for by the buyer.

9. All loan fees, "points" and other costs of obtaining

financing shall be paid for by the buyer of the defendant

property.

10. Each party shall execute all documents necessary to

close escrow, if such signatures are required by the title

insurer. 

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11. All parties hereby release plaintiff United States of

America and its servants, agents, and employees from any and all

liability arising out of or in any way connected with the

posting, forfeiture, or sale, of the defendant real property. 

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 waive the provisions of California Civil

Code § 1542. 

12. Claimant Patricia L. Hatton shall maintain the

defendant real property in the same condition and repair as

existed as of the date of the posting, normal wear and tear

excepted, until she has 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 removal; keeping the property in good

condition by providing for lawn and yard maintenance; and other

ordinary and necessary items of routine maintenance.

13. Until the sale of the defendant real property, claimant

Patricia L. Hatton shall maintain all 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. 

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Claimant Patricia L. Hatton shall arrange for the inclusion of a

rider to all of the above-mentioned policies naming the U.S.

Marshals Service as the primary beneficiary of the insurance

policy.

14. Until the sale of the defendant real property, or until

otherwise required to vacate the property, claimant Patricia L.

Hatton 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 24 hours telephonic

notice.

15. Except as specifically provided herein, claimant

Patricia L. Hatton shall not convey, transfer, encumber, lien, or

otherwise pledge the defendant real property without the prior,

written approval of the United States.

16. Claimant Patricia L. Hatton shall vacate the defendant

real property on 72 hours notice by the U.S. Marshals Service. 

Claimant further shall remove all personal possessions, and the

personal possessions of any former occupant, including all

vehicles, furniture, and trash, and to 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 possessions of any former occupant, not removed

within 72 hours will be disposed of by the United States without

further notice. Any cost incurred by the United States to evict

claimant or for disposal of personal possessions shall be

deducted from the payment to claimant Patricia L. Hatton as set

forth in ¶ 6.g above. 

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17. There was reasonable cause for the posting of the

defendant real property, and the Court may enter a Certificate of

Reasonable Cause pursuant to 28 U.S.C. § 2465.

18. All parties are to bear their own costs and attorneys'

fees, except as provided for herein.

19. Pending the sale of the property, and the disposition

of the proceeds, the Court shall maintain jurisdiction to enforce

the terms of the Final Judgment of Forfeiture.

IT IS SO ORDERED

Dated: October 23, 2007

_____________________________

MORRISON C. ENGLAND, JR.

UNITED STATES DISTRICT JUDGE

CERTIFICATE OF REASONABLE CAUSE

Pursuant to the Stipulation for Final Judgment of Forfeiture

filed herein and the allegations set forth in the Complaint for

Forfeiture In Rem filed May 24, 2007 the Court enters this

Certificate of Reasonable Cause pursuant to 28 U.S.C. § 2465,

that there was reasonable cause for the posting of defendant

property.

Dated: October 23, 2007

_____________________________

MORRISON C. ENGLAND, JR.

UNITED STATES DISTRICT JUDGE

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Exhibit A

Real property located at 6893 Lunar Lane, Paradise, California

All that certain real property situate in the Town of

Paradise, County of Butte, State of California,

described as follows:

PARCEL I:

The Northerly 69.47 feet of the Southerly 138.97 feet 

of the following described parcel of land:

Beginning at a point on the South line of Section 6,

Township 22 North, Range 4 East, M.D.B. & M., said 

point being 880.00 feet West of the South quarter 

corner of said Section 6: thence Northerly and 

parallel with the East line of the Southwest quarter 

of said Section 6, a distance of 416.85 feet; thence

Southerly and parallel with the East line of the 

Southwest quarter of said Section 6; thence East 

along the South line of said Section 6, a distance 

of 209.0 feet to the point of beginning.

EXCEPTING THEREFROM all minerals contained in said 

land that are situated 150 feet or more below the 

surface of the ground, it being understood and agreed 

by and between the parties hereto that in mining 

said land, no shafts shall be sunk from the surface, 

and all tunnels shall be timbered in such a manner 

that no caving shall occur from the surface as 

reserved in the deed from J. R. Brown, to J.G. Bennett, 

et al, recorded April 3, 1908 in Book 106 of Deeds, 

at page 477, Butte County Records.

PARCEL II:

A right of way for road and public utility purposes 

60 feet in width lying Westerly of and adjacent to 

the following described line:

Beginning at a point on the South line of said Section 

6, said point being 880.0 feet West of the South 

quarter corner of said Section 6 and true point of

beginning for the line herein described; thence from 

said true point of beginning Northerly and parallel 

with the East line of the Southwest quarter of said 

Section 6, a distance of 647.30 feet to a point on 

the South line of Dean Road and the end of said line.

AP No: 050-120-098

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