Opinion ID: 2997534
Heading Depth: 2
Heading Rank: 3

Heading: The Government’s Motion for Summary Judgment

Text: Following discovery, the government moved for summary judgment. The government pointed out a number of problems with Calhoun’s story, including various contradictions in Calhoun’s explanations of his trips to Phoenix. For example, the government presented records subpoenaed from ATA. These records indicated that Calhoun did not, as he testified in his deposition, make three prior trips to Phoenix. Instead, from July 1 to August 27, 2000, he made no fewer than seven round trips. For each of these flights (both to and from Phoenix), Calhoun purchased a one-way 6 No. 02-2899 ticket and made his flight reservation either the day of, or the day before, his departure. The government also subpoenaed records showing that Calhoun never stayed at the Holiday Inn, Hampton Inn, or Super 8 hotel, all of which are located at 55th Street and the expressway in Phoenix. Instead, records indicated that Calhoun stayed at a Traveler’s Inn, located at least four blocks from the location Calhoun indicated in his deposition. In sum, based on his flight schedule, Calhoun stayed a total of 27 nights in Phoenix over the course of two months. The government contended that all the evidence regarding Calhoun’s prior travels—along with evidence that Calhoun left his car in the Midway Airport parking garage on September 5, 2000, did not bring his driver’s license with him, made no arrangements for his two daughters to join him in Phoenix, and did not continue on to Phoenix (nor exercise a credit on his unused flight) that day or later— indicates that Calhoun had no plan to move permanently to Phoenix as he had testified. In addition, the government pointed out obvious contradictions in Calhoun’s income (as indicated in various financial records) and Calhoun’s stated sources for his cash hoard. For example, in November 1998, Calhoun filed for Chapter 7 bankruptcy. In his bankruptcy petition—signed under penalty of perjury—Calhoun declared that he had no cash on hand. On his 1998-2000 tax returns, Calhoun filed as head of household, took the Earned Income Tax Credit, and claimed no interest income from savings. Calhoun’s tax returns indicated no gambling earnings. Moreover, Calhoun supported both of his daughters, who lived with him in 1999 and 2000. Calhoun did not have any bank accounts, savings or otherwise. From November 1998, when Calhoun filed for bank- ruptcy, until the day the cash was seized, Calhoun’s comNo. 02-2899 7 bined reported income totaled $47,098. Calhoun’s reported expenditures in the same period (including rent, food, car payments, clothing, and recreation), plus the money Calhoun spent in connection with his travels to and from Phoenix, totaled at least $73,412. Thus, Calhoun’s expenditures exceeded his stated income in the relevant period by at least $26,394. In any event, the government argued, Calhoun’s financial papers did not support his assertions regarding the alleged sources—gambling or savings—of the $30,670. The government contended that all of these facts, coupled with the circumstances leading to the seizure of Calhoun’s cash hoard—in particular, Bax’s positive alert to the cash— proved by a preponderance of the evidence that the cash represented the proceeds of (or was intended to be furnished in exchange for) an illegal drug transaction and thus subject to forfeiture. Calhoun, who was represented by counsel, did not deny any of the material facts set forth in the government’s statement of material facts, nor did he offer any evidence of his own in opposition to the government’s motion. Instead, Calhoun offered his unsupported and conclusory contention that genuine issues of material fact precluded summary judgment because the government’s evidence was “nothing more than extrapolated speculations stemming from innocuous facts.” In considering the government’s motion, the district court found that Calhoun’s actions “show[ed] a pattern that is consistent with illegal narcotics transactions[.]” Specifically, the court considered evidence of Calhoun’s earnings and expenses and concluded that Calhoun could not possibly have accumulated $30,670 in any above-board manner consistent with his explanations. The court also found Calhoun’s statements regarding his travels to Phoenix to be inconsistent and implausible. Finally, the court determined Bax to be a reliable drug detection dog based on evidence the 8 No. 02-2899 government offered to that effect, and thus Bax’s alert to Calhoun’s cash, in addition to the aforementioned factors, demonstrated a link between the cash and illegal drug activity sufficient for the government to prevail in its forfeiture action. The court therefore granted summary judgment in the government’s favor, finding that an examination of all the evidence indicated “a pattern that is consistent with illegal narcotics transactions.” Calhoun, acting pro se, appealed the judgment. After the government filed its brief, we located appellate counsel to act on Calhoun’s behalf and requested additional briefing from both parties to illuminate several narrow questions related to Calhoun’s case, specifically: (1) How frequently do drug detection dogs falsely alert to currency that is not demonstrably related to the drug trade, but has been contaminated by prior owners?3 (2) What steps were taken to ensure that the suitcase into which officers placed the currency was not a possible source of drug odors (or to determine, after the fact, whether the suitcase rather than the currency may have been the source)? (3) What inference, if any, may be drawn with respect to the nature of Calhoun’s activity from the fact that he falsely asserted that the currency came from personal savings? and, relatedly, (4) Under what circumstances, if any, does a false explanation establish as a matter of law that the adversary’s version of the facts is true, as opposed to establishing a material issue for trial? We requested additional briefing in part because Calhoun’s pro se appellate brief was not a model of clarity. In addition, as the government concedes, the propriety of this forfeiture case turns on the dog alert evidence—if dog alerts to cur- 3 We also indicated in our order that “[i]f the record is silent on this issue, counsel should refer to any publicly available empirical information.” No. 02-2899 9 rency have no probative value, then the government cannot possibly link Calhoun’s cash to illegal narcotics activity. Evidence regarding the probity of dog alerts to currency is therefore crucial to resolving this appeal, and the record unfortunately does nothing to illuminate the issue. There appears to be some scientific and legal debate over this very issue, which is why we invited the parties to supplement their arguments with “publicly available empirical information” addressing the probative value of dog alerts to currency. We address the parties’ answers to these questions and their other arguments below.