Opinion ID: 3134337
Heading Depth: 2
Heading Rank: 5

Heading: Review of the State's Complaint

Text: The appellate court did not review the sufficiency of the State's complaint for forfeiture. The appellate court found that Jesus had waived any objection to the complaint by pleading over. 269 Ill. App. 3d 952. Similarly, the State argues that it is the act of filing an answer, and not whether the answer is later stricken, that serves to waive any further challenge to the sufficiency of the complaint. We find that Jesus has not waived his objection to the sufficiency of the State's complaint for forfeiture. On the merits, we conclude that the complaint fails to state a cause of action.
Generally, where a trial court denies a motion to dismiss a complaint and a defendant pleads over by filing an answer, the defendant waives the objection to the complaint. Adcock v. Brakegate, Ltd. , 164 Ill. 2d 54, 60 (1994). The waiver rule is designed to require a party to challenge a complaint at the earliest possible juncture, so that deficiencies may be cured by an amendment. This principle of waiver is a corollary to the doctrine of aider by verdict, which provides that a verdict will cure not only technical defects in a complaint, but also any defect in failing to allege substantial facts which are essential to the cause of action. Adcock , 164 Ill. 2d at 60-61. Initially, we note that this court has rejected the State's contention that the mere act of filing an answer forever waives the right to challenge a complaint. In Ingersoll v. Klein , 46 Ill. 2d 42 (1970), plaintiff filed a complaint alleging the reckless operation of an automobile. Defendant filed an answer, but the answer was stricken for a technical defect some two years later. In the time for filing an amended answer, defendant instead filed a motion to strike the complaint. This court rejected the plaintiff's contention that the stricken answer constituted an irrevocable waiver of the right to challenge the complaint. Ingersoll , 46 Ill. 2d at 44. More importantly, the appellate court erred in applying the waiver rule after a judgment by default. The waiver rule and the corollary doctrine of aider by verdict do not apply to the review of a complaint after a default judgment. The waiver rule and the doctrine of aider by verdict are premised on the understanding that defects in a complaint will be later cured by a verdict based on the evidence and instructions given at the trial. However, where a court enters a judgment by default, there is no evidence presented at trial and no verdict to cure the deficiencies in the complaint. After a default judgment, a party is entitled to challenge the sufficiency of a complaint on appeal. Suttles v. Vogel , 126 Ill. 2d 186, 193 (1988). A default admits only those material facts stated in the complaint, it does not admit the conclusions of the pleader. 4 C. Nichols, Illinois Civil Practice §4120, at 236-37 (rev. 1992). On review, a default judgment must be reversed where the complaint upon which that judgment is premised fails to allege facts sufficient to state a cause of action. Suttles , 126 Ill. 2d at 193; Roe v. County of Cook , 358 Ill. 568, 570 (1934). The appellate court further erred in considering the information contained in Sergeant Snyders' affidavit to determine that the State had satisfied its burden of establishing probable cause. Sergeant Snyders' affidavit was not submitted until after Jesus was found in default. In failing to plead, a party admits by default only the specific factual allegations contained in the complaint. Although the circuit court may request additional proof of the allegations stated in the complaint after a default (see 735 ILCS 5/2–1301(d) (West 1994)), it is the allegations stated in the complaint which must state a cause of action. In considering the facts in the affidavit as establishing probable cause, the appellate court effectively allowed the State to amend its complaint after the default. Furthermore, Jesus preserved his right to a thorough review of the sufficiency of the complaint by challenging the complaint as it stood prior to the entry of the default order. See Parrino v. Landon , 8 Ill. 2d 468, 475 (1956) (applying a deferential standard of review to a complaint after default where challenge was made for the first time on appeal). We therefore review the sufficiency of the State's complaint on its merits.
Pleadings serve to inform the court and the parties of the legal theories relied upon and to give notice of the factual issues which are to be tried. Yeates v. Daily , 13 Ill. 2d 510, 514 (1958). With this purpose in mind, the Civil Practice Law provides that pleadings are to be liberally construed with a view to doing substantial justice between the parties. 735 ILCS 5/2–603(c) (West 1994). Furthermore, “[n]o pleading is bad in substance which contains such information as reasonably informs the opposite party of the nature of the claim or defense which he or she is called upon to meet.” 725 ILCS 5/2–612(b) (West 1994). Although abandoning technical forms of pleading, Illinois remains a fact-pleading state. People ex rel. Fahner v. Carriage Way West, Inc. , 88 Ill. 2d 300 (1981). Therefore, the allegations in a complaint must set forth facts that satisfy the elements necessary to support a cause of action. People ex rel. Scott v. College Hills Corp. , 91 Ill. 2d 138, 145 (1982). The sufficiency of a complaint is an issue of law and our review is therefore de novo . Toombs v. City of Champaign , 245 Ill. App. 3d 580, 583 (1993). In order to state a cause of action for forfeiture, the State must allege sufficient facts that, along with favorable inferences, will satisfy the State's burden of establishing probable cause to forfeit the property. The Act is based on the federal narcotics forfeiture statute, and specifically incorporates federal case law. 725 ILCS 150/2 (West 1994). Therefore, we look to the federal courts for guidance regarding the appropriate standard for probable cause in the context of civil forfeiture. The federal courts define probable cause for forfeiture as reasonable grounds for belief of guilt, supported by less than prima facie proof but more than mere suspicion. United States v. One 1987 Mercedes 560 SEL , 919 F.2d 327, 331 (5th Cir. 1990). In making this determination, there is no need to tie the property to a specific drug transaction. However, suspicions of general criminal activity are not enough; the government must have probable cause to believe that the property is connected specifically to drug activities. United States v. U.S. Currency , $30,060.00 , 39 F.3d 1039, 1041 (9th Cir. 1994). A split of authority exists in the federal circuits concerning the strength of the connection between currency and drug activity necessary to establish probable cause. Several circuits require only a “nexus” between the narcotics activity and currency sought to be forfeited. See, e.g. , United States v. Daccarett , 6 F.3d 37, 55-56 (2d Cir. 1993); United States v. $5,644,540 in U.S. Currency , 799 F.2d 1357 (9th Cir. 1986); $30,060 in United States Currency , 39 F.3d 1039, 1041 (9th Cir. 1994). A similarly liberal standard has been applied by the Second District of our appellate court. See People ex rel. Waller v. $4,175 United States Currency , 239 Ill. App. 3d 857, 863 (1993) (requiring a “rational relationship between the contraband and the illegal activity”). Other federal circuits have determined that a stronger connection to narcotics activity must be demonstrated where the seized property is currency. These circuits have required a “substantial connection” between the currency and drug activity to establish probable cause to forfeit. See, e.g. , United States v. $95,945.18, United States Currency , 913 F.2d 1106, 1110 (4th Cir. 1990); United States v. 1964 Beechraft Baron Aircraft , 691 F.2d 725, 727 (5th Cir. 1982); United States v. $67,220 in United States Currency , 957 F.2d 280, 284 (6th Cir. 1992); United States v. $121,100 in United States Currency , 999 F.2d 1503, 1506 (11th Cir. 1993). “Under the substantial connection test, the property either must be used or intended to be used to commit a crime, or must facilitate the commission of a crime. At minimum, the property must have more than an incidental or fortuitous connection to criminal activity.” United States v. Schifferli , 895 F.2d 987, 990 (4th Cir. 1990). Those federal circuits applying the substantial connection standard to the forfeiture of currency generally justify its application based on the specific legislative history of section 881(a)(6), which uses the more exacting substantial connection language. See United States v. $364,960 in United States Currency , 661 F.2d 319, 323 (5th Cir. 1981) (citing Joint Explanatory Statement of Titles II and III, reprinted in 1978 U.S.C.C.A.N. 9518, 9522). However, section 881(a)(6) authorizes the federal government to bring forfeiture actions against only currency and other things of value given in exchange for drugs. 21 U.S.C. §881(a)(6) (1994). Thus, many of the federal circuits applying the substantial connection standard to the forfeiture of currency have declined to extend that requirement to other forfeiture actions, such as forfeitures of conveyances or real property used to facilitate drug activity. See, e.g. , United States v. One 1974 Cadillac Eldorado Sedan , 548 F.2d 421, 423 (2d Cir. 1977); 1964 Beechraft Baron Aircraft , 691 F.2d at 727; United States v. One 1984 Cadillac , 888 F.2d 1133, 1135-36 (6th Cir. 1989); United States v. One Parcel of Real Estate Commonly Known as 916 Douglas Avenue, Elgin, Illinois , 903 F.2d 490, 494 (7th Cir. 1990); but see United States v. Parcel of Land & Residence at 28 Emery Street, Merrimac, Massachusetts , 914 F.2d 1, 3 (1st Cir. 1990) (noting that the first circuit requires a substantial connection for the forfeiture of real property and conveyances because of the drastic nature of the proceedings); Nnadi v. Richter , 976 F.2d 682, 686 (11th Cir. 1992) (same); Schifferli , 895 F.2d at 990. Indeed, in declining to extend the substantial connection requirement to the forfeiture of conveyances and real property, those federal circuits have noted that the plain language of those sections allows for the forfeiture of such property used “in any manner” to facilitate drug-related offenses. See 1964 Beechraft Baron Aircraft , 691 F.2d at 727; One Parcel of Real Estate Commonly Known as 916 Douglas Avenue, Elgin, Illinois , 903 F.2d at 494. Similarly, section 505(a)(5) of the Controlled Substances Act does not share the legislative history supporting the more restrictive gloss on probable cause. In addition, like the federal forfeiture provisions applying to real property and conveyances, the Controlled Substances Act provides for forfeiture of all moneys used “in any manner to facilitate” a drug violation. 720 ILCS 570/505(a)(5) (West 1994). For this reason, we agree with the State that forfeiture requires only some nexus, not a substantial connection, between the currency and drug activity. Thus, a complaint for forfeiture must allege facts providing reasonable grounds for the belief that there exists a nexus between the currency and illegal drug activity, supported by less than prima facie proof but more than mere suspicion. Although we have interpreted the language in the Act consistently with those federal circuits applying a nexus standard, we note that the difference in phraseology that exists in the federal circuits is more semantic than practical. Where the State alleges that the currency was intended to be furnished for a controlled substance or was the proceeds thereof, the alleged nexus is self-evident and substantial. In addition, where the State alleges that the currency in some other way “facilitates” a controlled substances violation, the State must still further allege the manner in which the currency is used to make a controlled substance violation easier in order to demonstrate the necessary nexus. Thus, whatever distinction may exist between each standard, it is unlikely to ever produce different outcomes in the forfeiture of currency. Applying these considerations, the State's complaint alleges that the police discovered the currency after a search of the van Jesus was driving. Paragraph eight of the State's complaint further alleges “that the U.S. Currency was furnished or intended to be furnished in exchange for a substance, or the proceeds thereof, in violation of the Controlled Substances Act.” The State argues that it need not plead its evidence and that the complaint alleges an “ultimate fact” that the money is related to drug trafficking. As it pleads this ultimate fact, the State argues that the complaint adequately states a cause of action for forfeiture. Whether a particular allegation is deemed to be an ultimate fact or a conclusion is a matter to be determined by a careful consideration of the needs of administering particular litigation. Van Dekerkhov v. City of Herrin , 51 Ill. 2d 374, 376 (1972). In the context of a forfeiture proceeding, we believe that a complaint alleging that currency is drug related must provide some supporting detail that would provide notice to a claimant of the nature of the drug connection. Such factual detail is acutely necessary in the context of a civil forfeiture action, because the police may summarily seize property without judicial sanction. 720 ILCS 570/505(b)(4) (West 1994). Thus, an appropriate motion challenging the factual sufficiency of the State's complaint provides the first opportunity for a claimant to challenge the seizure in order to obtain the return of property wrongfully seized. Federal pleading standards similarly recognize the need for factual specificity in forfeiture complaints to accommodate the drastic nature of the proceedings. Despite the lenient admiralty pleading standards, special rules applicable to forfeiture complaints require the government to “state the circumstances from which the claim arises with such particularity that the defendant or claimant will be able to  commence an investigation of the facts and to frame a responsive pleading.” (Emphasis added.) See Fed. R. Civ. P. Supplemental R. E(2)(a). Federal courts have interpreted this language to require greater factual specificity than is generally required under federal notice pleading. See United States v. $39,000 in Canadian Currency , 801 F.2d 1210, 1216 (10th Cir. 1986); United States v. $38,000 in United States Currency , 816 F.2d 1538, 1548 (11th Cir. 1987); United States v. Daccarett , 6 F.3d 37, 47 (2d Cir. 1993). “[A]n actionable wrong cannot be made out merely by characterizing acts as having been wrongfully done.” Adkins v. Sarah Bush Lincoln Health Center , 129 Ill. 2d 497, 520 (1989). The State's naked allegation that the seized currency is drug related does not reasonably apprise an owner of the nature of the evidence that will be presented. Beyond this allegation, the State's complaint alleges only the discovery of a large amount of cash during the search of a stranded motorist's van. The discovery of a large amount of cash, without more, is insufficient to establish probable cause. United States v. One Hundred Twenty One Thousand One Hundred Dollars ($121,100) in United States Currency , 999 F.2d 1503, 1507 (11th Cir. 1993). The complaint provides no additional factual support for the alleged drug connection of the currency. For this reason, the State's complaint for forfeiture fails to state a cause of action. Although we have determined that the State's complaint is factually insufficient to support a finding of probable cause, we recognize that the State should have an opportunity to amend its complaint. On remand, the State must present some factual support in its complaint for the conclusory allegation that the currency is drug related. The State need not plead its evidence, but must allege some facts providing reasonable grounds for the belief that there exists a nexus between the currency and some illegal drug activity, supported by less than prima facie proof but more than mere suspicion.