Opinion ID: 409453
Heading Depth: 1
Heading Rank: 3

Heading: Subsequent Return of the Copies

Text: 38 We now turn our attention to the subsequent disposition of the copies. The general rule is that seized property, other than contraband, should be returned to the rightful owner after the criminal proceedings have terminated. United States v. Francis, 646 F.2d 251, 262 (6th Cir. 1981); United States v. LaFatch, 565 F.2d 81, 83 (6th Cir. 1977), cert. denied, 435 U.S. 971, 98 S.Ct. 1611, 56 L.Ed.2d 62 (1978). This is true whether or not the original seizure was lawful. United States v. Francis, 646 F.2d at 262, n. 7. Where the former defendant in criminal proceedings can show a property interest in the copies, the government must return them. Thus, the initial issue is whether Sovereign News can show a sufficient property interest in the copies to demand their return. 39 The United States contends that Sovereign News does not have a property interest because the copies are business records. This argument is based upon United States v. King, 528 F.2d 68, 69 (9th Cir. 1975) where the court refused to order the government to surrender transcripts of defendant's telephone conversations recorded by the government. Ruling on a Rule 41(e) motion the court held that defendant had not demonstrated entitlement to lawful possession of the property which was illegally seized as required by 41(e). Id. at 69. He is no more the owner of the tapes and transcripts of the conversations made by the government than he is the owner of the mental impressions and memories of the government agents who intercepted the conversations. Id. In this case, however, Sovereign News has a property interest in the copies because the business records copied were the sole property of Sovereign News. Therefore, Sovereign News has a right to the return of the copies. 40 However, we must balance this right against the legitimate needs of the United States. We agree that the government has a right to copy documents lawfully in its possession. United States v. Ponder, 444 F.2d 816, 820 (5th Cir. 1971), cert. denied, 405 U.S. 918, 92 S.Ct. 944, 30 L.Ed.2d 788 (1972). United States v. Chapman, 559 F.2d 402, 405 (5th Cir. 1977). We also agree that (a) defendant's motion for return of property will be unavailing where the government has a continuing interest in the property. United States v. Francis, 646 F.2d 251, 263 (6th Cir. 1981). United States v. Premises Known as 608 Taylor Avenue, 584 F.2d 1297, 1303 (3d Cir. 1978). This continuing interest can include a criminal or tax investigation in progress. Warden v. Hayden, 387 U.S. 294, 307, 87 S.Ct. 1642, 1650, 18 L.Ed.2d 782 (1967); United States v. One Residence and Attached Garage, etc., 603 F.2d 1231, 1234 (7th Cir. 1979). However, we hold that when the government has held the copies for a reasonable time and has no investigations in progress, it must return the copies as well as the originals. Mr. Lucky Messenger Service v. United States, 587 F.2d at 17; cf. United States v. Wallace & Tiernan Company, 336 U.S. 793, 800-801, 69 S.Ct. 824, 828, 93 L.Ed. 1042 (1948). 41 The United States contends that it can keep the copies indefinitely since it seized the originals lawfully. It bases this conclusion on United States v. Chapman, 559 F.2d 402 (5th Cir. 1977). We decline to interpret Chapman so broadly. The Chapman court decided that the United States properly retained copies of gambling records to investigate tax questions concerning the defendants. Apparently, there was a legitimate use for the records. In the present case, we can conceive of no legitimate purpose for retaining these documents if the United States contemplates no actual use for them. The government may not keep the copies purely for the sake of keeping them or because it is hopeful they may be relevant to some future investigation. United States v. Moore, 423 F.Supp. 858, 859-60 (S.D.W.Va.1976). This amounts to harassment. 42 Therefore, on remand, the District Court should require the government to show cause why it is retaining these copies. If the copies are needed for an ongoing or proposed specific investigation, the government is entitled to retain them. See, e.g., United States v. Chapman, United States v. Murphy, 413 F.2d 1129, 1140 (6th Cir.), cert. denied, 396 U.S. 896, 90 S.Ct. 195, 24 L.Ed.2d 174 (1969). If the materials are being used for grand jury proceedings, we refer the court to the three tests set forth in In re Grand Jury Proceedings, 507 F.2d 963 (3d Cir. 1975). Those tests require a showing that the materials were (1) relevant to an investigation, (2) properly within the grand jury's jurisdiction, and (3) not sought primarily for another purpose such as harassment. Id. at 966. In order to protect the secrecy of the grand jury, the court may wish to hold the hearing in camera. See Mr. Lucky Messenger Service v. United States, 587 F.2d at 17; Shea v. Gabriel, 520 F.2d 879, 882 (1st Cir. 1975). 43 In summary, we hold that this court has jurisdiction to hear the case because the District Court's order denying return of the copies was a final order. Next, we hold that the searches of March 19 and 25, 1975 were valid and legal searches. Finally, we hold that since the appellant has demonstrated an undivided property interest in the copies of the business records, it is entitled to immediate return of the copies unless the government can demonstrate that the copies are necessary for a specific investigation. We therefore affirm the order of the District Court and remand the case for further proceedings consistent with this opinion.