Opinion ID: 664157
Heading Depth: 1
Heading Rank: 1

Heading: In Rem Jurisdiction.

Text: 10 The exercise of in rem jurisdiction in a civil forfeiture case permits the court to adjudicate the rights of the government to the property as against the whole world. United States v. Certain Real & Personal Property Belonging to Hayes, 943 F.2d 1292, 1295 (11th Cir.1991). Traditionally, a court could obtain in rem jurisdiction only over property situated within its territorial borders. Pennington v. Fourth Nat'l Bank, 243 U.S. 269, 272, 37 S.Ct. 282, 283, 61 L.Ed. 713 (1917). Thus, venue for an in rem civil proceeding to forfeit property lies in the district in which the property is found. 4 28 U.S.C. Sec. 1395(b). 11 In 1986, as part of the Anti-Drug Abuse Act of 1986, Pub.L. No. 99-570, 100 Stat. 3207, Congress expanded the venue for civil forfeiture actions arising out of money laundering activities as follows: 12 In addition to the venue provided for in section 1395 of title 28 or any other provision of law, in the case of property of a defendant charged with a violation that is the basis for forfeiture of the property under this section, a proceeding for forfeiture under this section may be brought in the judicial district in which the defendant owning such property is found or in the judicial district in which the criminal prosecution is brought. 13 18 U.S.C. Sec. 981(h). 14 The government relies on the provisions of Sec. 981(h) to support its argument that the district court had jurisdiction over the defendant property located in New Mexico because the underlying criminal prosecution was brought in the District of Colorado and, after his arrest, Austin also was brought into the District of Colorado. 5 Venue, however, is distinct from jurisdiction. United States v. Contents of Accounts Nos. 3034504504 & 144-07143, 971 F.2d 974, 980 (3d Cir.1992), cert. denied, --- U.S. ----, 113 S.Ct. 1580, 123 L.Ed.2d 148 (1993). Even if a district is the proper venue for a civil forfeiture action, the court cannot proceed unless it has jurisdiction over the defendant property. To obtain jurisdiction over the property, the court must be able to execute service of process on it. Id. at 980-81. 15 At the time the government filed its complaint and the district court sought to obtain jurisdiction over the property in New Mexico, Supplemental Rule E(3)(a) provided that [p]rocess in rem and of maritime attachment and garnishment shall be served only within the district. By contrast, Fed.R.Civ.P. 4(f) provided that [a]ll process other than a subpoena may be served anywhere within the territorial limits of the state in which the district court is held and, when authorized by a statute of the United States or by these rules, beyond the territorial limits of the state. 6 Even if the more expansive service provisions of Rule 4(f) applied, the district court could not execute service of process outside Colorado unless some federal statute authorized the court to do so. 16 The government contends that Sec. 981(h) is such a statute. In support of its position, the government relies on several district court cases holding that either Sec. 981(h) or 21 U.S.C. Sec. 881(j)--the counterpart to Sec. 981(h) in drug cases--authorizes nationwide service of process. United States v. 953 E. Sahara, 807 F.Supp. 581, 581 (D.Ariz.1992) (Sec. 981(h)); 7 United States v. Parcel I, Beginning at a Stake, 731 F.Supp. 1348, 1351 (S.D.Ill.1990) (Sec. 881(j)); United States v. 2050 Brickell Ave., 681 F.Supp. 309, 314 (E.D.N.C.1988) (Sec. 881(j)). 17 In each of these cases, the district court acknowledged that Congress did not expressly provide for nationwide service of process in either Sec. 981(h) or Sec. 881(j), but determined that authority for nationwide service should be implied to give effect to the expanded venue provision. 953 E. Sahara, 807 F.Supp. at 585; Parcel I, 731 F.Supp. at 1351-52; 2050 Brickell Ave., 681 F.Supp. at 313-14. 18 At least two other courts, however, have declined to imply authority for nationwide service of process in these expanded venue provisions. Accounts Nos. 3034504504 & 144-07143, 971 F.2d at 982-83 (Sec. 981(h)); United States v. 11205 McPherson Lane, 754 F.Supp. 1483, 1487 (D.Nev.1991) (Sec. 881(j)). The following factors informed these courts' respective decisions: (1) the statute, itself, is silent; (2) the relevant legislative history, if any, does not support the implication of nationwide service of process; 8 (3) Congress has provided expressly for nationwide service of process in a wide variety of statutes when it has deemed such process necessary; and (4) in Omni Capital International, Ltd. v. Rudolf Wolff & Co., 484 U.S. 97, 106, 108 S.Ct. 404, 410, 98 L.Ed.2d 415 (1987), the Supreme Court held that because Congress knows how to provide for nationwide service of process, its failure to do so argues forcefully that such authorization was not its intent. Accounts Nos. 3034504504 & 144-07143, 971 F.2d at 981-82; 11205 McPherson Lane, 754 F.Supp. at 1486-88. 19 The Third Circuit also concluded that, even in the absence of nationwide service of process, Sec. 981(h) is not without effect. Its grant of venue to a district court in which a related criminal proceeding has been brought permits [that court] to adjudicate any rights the criminal defendants subject to its jurisdiction may have in a res located [outside the district], without regard to [in rem] service of process. Accounts Nos. 3034504504 & 144-07143, 971 F.2d at 983. If, however, the property is outside the district in which the related criminal proceeding is pending and the government wishes to adjudicate rights in the property of anyone who is not subject to the territorial jurisdiction of the district court, then, the Third Circuit ruled, the government must bring a civil forfeiture action in the district in which the property is located. Id. 20 We are persuaded by the rationale of the Third Circuit and, therefore, hold that Sec. 981(h) does not authorize nationwide service of process. Our inquiry does not end here, however, because we also must determine whether the amendment of 28 U.S.C. Sec. 1355 in 1992 retroactively gave the district court jurisdiction. If it did not, then we must determine whether the district court had personal jurisdiction over Nitsua so that it could, nonetheless, adjudicate Nitsua's rights to the subject property. 21 On October 28, 1992, Congress enacted the Annunzio-Wylie Anti-Money Laundering Act as part of the Housing and Community Development Act of 1992, Pub.L. No. 102-550, 106 Stat. 3672. Section 1521 of the Act amended 28 U.S.C. Sec. 1355 to provide in pertinent part as follows: 22 (b)(1) A forfeiture action or proceeding may be brought in-- 23 (A) the district court for the district in which any of the acts or omissions giving rise to the forfeiture occurred, or 24 (B) any other district where venue for the forfeiture action or proceeding is specifically provided for in section 1395 of this title or any other statute. 25 .... 26 (d) Any court with jurisdiction over a forfeiture action pursuant to subsection (b) may issue and cause to be served in any other district such process as may be required to bring before the court the property that is the subject of the forfeiture action. 27 Section 1521 became effective on the date of enactment. See Pub.L. No. 102-550, Sec. 2, 106 Stat. 3681 (set out as a note under 42 U.S.C. Sec. 5301) (The provisions of this Act and the amendments made by this Act shall take effect and shall apply upon the date of the enactment of this Act, unless such provisions or amendments specifically provide for effectiveness or applicability upon another date certain.). The government argues that this amendment to Sec. 1355 retroactively gave the district court in rem jurisdiction over the property in New Mexico. We disagree. 28 Regardless of whether Congress enacts a new law or amends an existing one, ... [w]e must examine whether Congress clearly and expressly intended the new law to apply retroactively, as shown by statutory language or authoritative legislative history. DeVargas v. Mason & Hanger-Silas Mason Co., 911 F.2d 1377, 1388 (10th Cir.1990), cert. denied, 498 U.S. 1074, 111 S.Ct. 799, 112 L.Ed.2d 860 (1991). The language of the Housing and Community Development Act's general effectiveness provision, set forth above, does not indicate whether the Act is to apply to cases pending on the date of enactment, or only to cases filed thereafter. Although particular provisions of the Act have different effectiveness or applicability dates, the legislative history does not evidence any congressional intent to apply the Act retroactively as a whole. The standard of 'clear congressional intent' for the retroactive application of statutes requires articulated and clear statements on retroactivity, not inferences drawn from the general purpose of the legislation. Id. at 1387. 29 In the absence of clear congressional intent expressed in the statutory language or the legislative history, we follow the presumption set forth in Bowen v. Georgetown University Hospital, 488 U.S. 204, 208, 109 S.Ct. 468, 471, 102 L.Ed.2d 493 (1988), that congressional enactments and administrative rules will not be construed to have retroactive effect unless their language requires this result. DeVargas, 911 F.2d at 1389, 1392; accord Oklahoma Radio Assocs. v. FDIC, 987 F.2d 685, 695-96 (10th Cir.1993). 30 Therefore, we conclude that the amendment of Sec. 1355 in October 1992 does not apply to the case before us. But cf. Republic Nat'l Bank v. United States, --- U.S. ----, ---- - ----, 113 S.Ct. 554, 565-66, 121 L.Ed.2d 474 (1992) (Thomas, J., concurring) (arguing that addition of subsection (c) to Sec. 1355 should be applied retroactively); United States v. One 1990 Lincoln Town Car, 817 F.Supp. 1575, 1577-78 (N.D.Ga.1993) (retroactively applying 1992 amendments to Sec. 1355 without discussing whether Congress so intended). Moreover, even if the provisions were otherwise retroactive, we doubt they could retroactively validate service of process that was invalid when executed. 31 Because the district court did not execute valid service of process on the property in New Mexico, it did not have in rem jurisdiction over that property. Therefore, the court erred in entering a judgment of forfeiture for the government, thereby adjudicating the government's interest in the property as against the whole world. See Accounts Nos. 3034504504 & 144-07143, 971 F.2d at 984. 32