Opinion ID: 559946
Heading Depth: 3
Heading Rank: 4

Heading: Improper Transfer

Text: 19 If the premature entry of judgment and the clerk's failure to give notice did not adversely affect the Navarros' right to seek a stay of the forfeiture, we do not believe that we may hold the forfeiture to be improper. We hold that errors in the forfeiture procedure may constitute a basis for finding a transfer accidental, improper, or fraudulent only when such errors reasonably prevented the claimant from applying for a stay. Here the cumulative failures are sufficient to conclude the res was improperly transferred. We reach this conclusion not only because of the cumulative nature of the errors but also because the clerk's failure was not excused by the Navarros' negligence in failing to ascertain notice of judgment on their own. First, the court clerk told Navarros' counsel twice that judgment had not been executed even though it had been. Second, the clerk could not find the file on February 17, 1989 when counsel sought to review it. Third, on February 21, 1989, when counsel was able to obtain the file, he could not find the judgment in the file. Last, the docket entries were out of order. 1 20 The determination of whether the transfer was improper involves similar considerations as those we confronted in Rodgers v. Watt, 722 F.2d 456 (9th Cir.1983), deciding whether to approve an extension of time to file an appeal. As here, the clerk in Rodgers failed to mail entry of judgment to the parties. The court stated that the Rodgers could be granted the relief they sought if they proved excusable neglect, which was defined as lack of notice plus additional equitable factors such as attempts to learn the anticipated date of the decision. Id. at 458. Where counsel had sent his secretary to check the docket, who reported only the last entry, and where the trial court had found this neglect was excusable, counsel's efforts were justifiably sufficient. Id. at 461. 21 In granting the Navarros' motion for late appeal, the judge necessarily found that there was excusable neglect. The standard of review for a district court's finding of excusable neglect is abuse of discretion. United States v. Houser, 804 F.2d 565, 569 (9th Cir.1986). We find that the district court did not abuse its discretion in finding excusable neglect of the Navarros in failing to learn of the entry of judgment prior to the transfer of the currency. The Navarros were unable to learn of the entry of judgment through reasonable means. As a result, they did not move for a stay to prevent the res from being transferred. The defendant currency was thereby accidentally and improperly transferred to the United States Treasury. Under this exception, we retain jurisdiction over the res. See Ten Thousand Dollars, 860 F.2d at 1513 (jurisdiction retained where pro se litigant's request for appointment of counsel improperly failed to reach the district judge before forfeiture).