Opinion ID: 2813647
Heading Depth: 2
Heading Rank: 3

Heading: Nugen’s Superior-Interest Theory

Text: Nugen argues (1) its legal interest in the Audi arose from acquiring title, and (2) Henry’s payments went toward leasing or using the Audi, but (3) Henry never acquired any interest in the Audi, because he failed to make all payments under the verbal agreement with Nugen.1 The government responds Nugen has, if anything, an unperfected security interest in the Audi, which is insufficient to establish statutory standing. 1 Nugen does not argue on appeal it is a bona fide purchaser under § 853(n)(6)(B); therefore, it has abandoned that claim. See Access Now, Inc. v. Sw. Airlines Co., 385 F.3d 1324, 1330 (11th Cir. 2004) (“[T]he law is by now well settled in this Circuit that a legal claim or argument that has not been briefed before the court is deemed abandoned and its merits will not be addressed.”). 13 Case: 14-14522 Date Filed: 07/01/2015 Page: 14 of 18 Anyone other than the defendant asserting an interest in property subject to a § 853 forfeiture may petition the court to adjudicate the validity of his alleged interest in the property. 21 U.S.C. § 853(n)(2). The court must amend the forfeiture order appropriately: (6) If, after [a] hearing, the court determines that the petitioner has established by a preponderance of the evidence that– (A) the petitioner has a legal right, title, or interest in the property, and such right, title, or interest renders the order of forfeiture invalid in whole or in part because the right, title, or interest was vested in the petitioner rather than the defendant or was superior to any right, title, or interest of the defendant at the time of the commission of the acts which gave rise to the forfeiture of the property under this section. Id. § 853(n)(6)(A). Although state law determines the nature of a claimant’s interest in property subject to criminal forfeiture, federal law determines whether the claimant’s interest in the property “is superior and thus renders the forfeiture order invalid under § 853(n)(6).” Shefton, 548 F.3d at 1364. The record is too unclear at this stage of the proceedings to determine what interest, if any, Nugen has in the Audi and whether Nugen’s interest would be sufficient to prevail under § 853(n)(6)(A) as a superior interest. We note, however, in determining Nugen lacked statutory standing, the district judge first concluded that, if Nugen had any interest in the Audi, it had an unperfected-security interest. 14 Case: 14-14522 Date Filed: 07/01/2015 Page: 15 of 18 Citing state law, the judge determined an unperfected-security interest was insufficient to challenge the government’s vested interest in the Audi. The judge’s reliance on state law to resolve what amounted to a determination Nugen could not prevail under § 853(n)(6)(A) was improper, because federal law determines whether a claimant’s interest renders the forfeiture order invalid. See id.