Opinion ID: 539930
Heading Depth: 3
Heading Rank: 2

Heading: Effect of Failure to Verify

Text: Whether the failure to file a verified complaint deprives the district court of jurisdiction is a case of first impression in this court. See Complaint of McLinn, 744 F.2d 677, 685 (9th Cir.1984) (recognizing, but not deciding, argument that failure to verify complaint under Supplemental Rules may deprive the court of jurisdiction). The other courts that have addressed this issue have uniformly held that when a party fails to verify a complaint, the court does not have jurisdiction over the res. See Pizani v. M/V Cotton Blossom, 669 F.2d 1084, 1090 (5th Cir.1982) (Supplemental Rule C(2) of the Federal Rules of Civil Procedure ... requires the filing of a verified complaint as a prerequisite to obtaining in rem jurisdiction.); Amstar Corp. v. M/V Alexandros T., 431 F.Supp. 328, 334 (D.Md.1977) (Both Supplemental Rule B(1) and Supplemental Rule C(2) require that an action of this sort be instituted by means of a verified complaint.), aff'd, 664 F.2d 904 (4th Cir.1981); see also United States v. Banco Cafetero Int'l, 608 F.Supp. 1394, 1400 n. 3 (S.D.N.Y.1985) (dicta), aff'd, 797 F.2d 1154 (2d Cir.1986). We believe that these cases are a correct interpretation of the Supplemental Rules and hold that the government's failure to verify the complaint deprived the district court of jurisdiction over the money. Our decision is merely a logical extension of earlier precedents interpreting the Supplemental Rules. The first step in the civil forfeiture process is the filing of a verified complaint. A subsequent step is the issuance of an arrest warrant. See Supplemental Rule C(3). Earlier, this court concluded that a district court did not have in rem jurisdiction over the res when the plaintiff failed to arrest under process of the court. See Alyeska Pipeline Serv. Co. v. Vessel Bay Ridge, 703 F.2d 381, 384 (9th Cir.1983), cert. dismissed, 467 U.S. 1247, 104 S.Ct. 3526, 82 L.Ed.2d 852 (1984). If the failure to arrest deprives the court of jurisdiction, the failure to properly file a complaint, a fortiori, deprives the court of jurisdiction over the res. Appellant's decision to wait two years after the entry of default judgment does not constitute a waiver of its ability to challenge the district court's jurisdiction. Supplemental Rule C(6) requires a person to file a claim within ten days of execution of service and then file an answer within twenty days of filing the claim. A claimant need not comply with Supplemental Rule C(6), however, if the government commits procedural errors in executing process. See United States v. $38,000.00 in United States Currency, 816 F.2d 1538, 1545-47 (11th Cir.1987) (because the government failed to properly execute process under Supplemental Rule C(3), claimant is not required to follow time limits set forth in Supplemental Rule C(6)). If a court does not have jurisdiction over the res from the beginning of a lawsuit, a claimant should not be required to file a claim and answer. If a claimant does not have a legal duty to appear and defend a lawsuit, it follows, therefore, that the claimant's inaction does not constitute a waiver of any legal rights. 2 Even though the district court did not have jurisdiction, this case is by no means at an end. When a party fails to properly verify a complaint, the appropriate procedure is for the district court to dismiss the complaint without prejudice. See $38,000.00 in United States Currency, 816 F.2d at 1547-49 (dismissal of forfeiture complaint without prejudice and with leave to amend); Complaint of McLinn, 744 F.2d at 685 (on remand, plaintiffs may seek to cure jurisdictional defects); 7A Moore's Federal Practice C.08, at 662 (suggesting complaint without verification may be amended to cure the defect). The government should have the opportunity to request that the district court allow amendment of its complaint. Accordingly, a remand of this matter is in order. Finally, we note that the result in this case will not cause any real harm to the government's efforts in the war on drugs. This decision only says that the United States Attorneys must follow the verification requirements in their particular state. Had the attorney acted with less haste, this problem would not have occurred. Moreover, this decision simply tells the district courts that when reviewing forfeiture complaints at the beginning or entering default judgments at the end, they must do more than give the record a cursory glance. Because verification is jurisdictional, the district court must review the complaints to determine that it has jurisdiction to order execution of process or enter default judgment.