Document: 507 U.S. 111 113 S.Ct. 1126 122 L.Ed.2d 469 UNITED STATES, Petitionerv.A PARCEL OF LAND, BUILDINGS, APPURTENANCES AND IMPROVEMENTS, KNOWN AS 92 BUENA VISTA AVENUE, RUMSON, NEW JERSEY, et al. No. 91-781. Argued Oct. 13, 1992. Decided Feb. 24, 1993. Syllabus * The Government filed an in rem action against the parcel of land on which respondent's home is located, alleging that she had purchased property with funds given her by Joseph Brenna were "the proceeds traceable" to illegal drug trafficking, and was therefore subject seizure forfeiture under Comprehensive Drug Abuse Prevention Control Act 1970, 21 U.S.C. § 881(a)(6). District Court ruled, among other things, respondent, who claims no knowledge origins used buy house, could not invoke "innocent owner" defense 881(a)(6), provides "no shall be forfeited . ., extent interest owner, reason any act established owner have been committed without or consent owner." Appeals remanded interlocutory appeal, rejecting Court's reasoning innocent may invoked only persons are bona fide purchasers for value those acquired their interests before acts giving rise took place. Held: judgment affirmed. 937 F.2d 98 (CA 3 1991), Justice STEVENS, joined BLACKMUN, O'CONNOR, SOUTER, concluded owner's lack fact transactions constitutes a proceeding statute. Pp. ____. (a) task construing statute must approached caution. Although customs, piracy, revenue laws long provided official tangible commission criminal activity, marked important expansion governmental power authorizing from sale goods creating express novel protection owners. (b) statute's use unqualified term "owner" three places sufficiently unambiguous foreclose contention afforded owners limited purchasers. That respondent purchase gift does not, therefore, disqualify claiming such owner. P. (c) Contrary Government's contention, did vest ownership United States at moment when transaction pay price issue, thereby preventing ever becoming "owner." Neither "relation back" doctrines relied Government—the doctrine embodied 881(h), "[a]ll right, title described subsection upon this section," common-law doctrine, decree effectively vests offending res as date conduct makes has decreed. Assuming applies, it clear fictional retroactive vesting thereunder self-executing, but occurs wins forfeiture. Until then, someone else owns available defense, including assertion A reading 881(h) demonstrates dispense with, merely codified, leads same result. legislative history reveals applies civil 881(a). traceable are, 881(h)'s words, "property subsection" (a)(6), latter exempts owned one unaware source allow applies. (d) This need resolve, inter alia, parties' dispute point guilty tainted character will deprive party because assumed burden convincing trier alleged Brenna's received it. SCALIA, THOMAS, concluded: 1. While true 881(a)(6)'s exception produces result would traditional (with its relation-back principle), conclusion cannot based plurality's implausible phrase (a)." Rather, reached case correct best read expression takes effect entry judicial order condemnation. Under alternative reading—that immediate, undecreed, secret time transaction—either plain language innocent-owner provision slighted deprived all effect. Additionally, principle interpretation sense within structure applicable customs procedures, gain until there decree, explanation textual distinction between 853's "transferee" provisions. 2. There proper basis proving it, opposed occurred. issue what relevant purposes determining fairly included question granted certiorari, resolve J., announced delivered opinion, JJ., joined. opinion concurring judgment, KENNEDY, dissenting REHNQUIST, C.J., WHITE, Amy L. Wax, Washington, DC, petitioner. James A. Plaisted, Roseland, NJ, respondent. STEVENS SOUTER join. 1 presented whether 511(a), 84 Stat. 1276, amended, 881(a)(6).1 2 On April 3, 1989, Rumson, New Jersey, located. verified complaint 1982 [unlawful] exchange controlled substance," App. Id., 15.2 12, ex parte proceeding, determined probable cause believe premises forfeiture, issued summons warrant arrest Marshal take possession premises. Respondent thereafter asserted claim property, right defend action,3 motion summary judgment. 4 During pretrial proceedings, following facts established. In 1982, gave approximately $240,000 children occupied since. sole property. From 1981 separation 1987, maintained intimate personal relationship Brenna. house swears origins. 5 Among grounds advanced support meaning rejected two reasons: First ruled can demonstrate they " (emphasis original).4 Second, court offer place.5 6 allowed appeal pursuant 28 1292(b). One controlling questions law was: 7 "Whether person purchaser concerning where government monies proceeds." 742 F.Supp. 189, 192 (NJ 1990). 8 Answering affirmative, determine was, fact, refused limit contains limitation,6 indicating should broadly construed,7 difference text 881(a)(6) evidenced congressional intent restrict section way.8 9 also argument unless advancing section." held relation back applied (a)" fit description if establish defense. "would essentially serve emasculate No obtaining after occurrence transaction—including —would eligible his behalf." 98, 102 (CA3 1991) 9a. 10 conflict decision decisions Fourth Tenth Circuits, see re 1985 Nissan, 889 1317 (CA4 1989); Eggleston v. Colorado, 873 242, 245-248 (CA10 1989), led us grant 503 ----, 112 1260, 117 490 (1992). We now affirm. II 11 Laws providing activity played role our country. Colonial courts regularly exercised jurisdiction enforce English local statutes ships violation laws.9 12 Indeed, misuse hated general often cited American Revolution.10 13 Congress enacted legislation cargos involved offenses.11 Other authorized engaged piracy.12 When ship "piratical aggression," confiscation notwithstanding innocence vessel.13 Later distilleries defraud tax revenues alcoholic beverages. See, e.g., Stowell, 133 1, 11-12, 244, 245-246, 33 L.Ed. 555 (1890). these cases, piracy leased distiller defeat condemnation fraudulent lessee.14 14 early cases stemmed itself. Warden Hayden, 387 294, 87 1642, 18 782 (1967), seize 'the private citizen permitted possess.' "15 holding Amendment prohibit "mere evidence" power. See Zurcher Stanford Daily, 436 547, 577-580, 1987-1989, 56 525 (1978) (STEVENS, dissenting). 15 1978 amend 1236, authorize transactions, 3777, power.16 Before amendment, substances themselves instruments manufactured distributed.17 original provisions 1970 closely paralleled laws, laws: They generally contained stolen goods, apply goods. Because statute, owners, we approach III 16 correctly strongest conclusion. authorizes moneys exchanged substance, "all exchange," unequivocal exception: 17 "[N]o paragraph, omission omitted times each unqualified. Such Presumably explains why challenge aspect Appeals' ruling. "proceeds sales substances. terms status precisely if, instead having Brenna, sold him issue. IV 19 statutory "owner", insists bought lived contends never vested price. position, relies both 1984 amendment doctrine. conclude, however, neither nor rule 20 analyzing argument, remember invokes forfeitable. money narcotics became purchase. constituted forfeitable occurred, submission eliminate almost every imaginable forfeited. It seems unlikely create meaningless Moreover, considering logical application innocently paid services traffickers,18 persuading intended inequitable especially heavy. recognizes go into years case. heavily forfeitures. fiction itself wrongdoer account harms caused.19 "res", treated wrongdoer, appropriate regard actual proceeding. conduct. aware precedent treating unlawful entirely applicable. apply, nevertheless self-executing. 22 Chief Marshall explained automatically Government: 23 "It proved, forfeitures accruing common law, nothing some legal step taken which, many purposes, carries offence." Grundy, Cranch 337, 350-351, 459 (1806).20 (a specific provision) passage referred us,21 stated understanding how relates forfeitability: 24 "By settled court, whenever enacts certain connected forfeited, immediately act; then States, although perfected condemnation; transfer offence committed; condemnation, obtained, time, avoids intermediate alienations, even good faith." U.S., 16-17, S.Ct., 247 (emphases added). 25 If rule—which provisions—the win 26 allows prove And, further rules dispensed with," 351. opportunity 881(h); subsection, codified rule. proceeds, lead provides: 27 "All title, 881(h). species (a)," argues anyone than States. fails. 29 "described" first part last clause proceeds—proceeds source—from As Senate Report observed, 881(a)."22 satisfy success 881(a) necessarily applies.23 30 Therefore, specifically inserted disturb rights either Government. always defenses made them vested, vest, related Our denies benefits profit obtained And version chance evidence V 31 postscript identify issues parties addressed, decided. 32 argued construction highly enable transferee qualify occurred learned about accepted proceeds. disputes suggest transferee's transferred.24 ambiguous justify resort history, equitable events, case; it.25 denying alleged, allowing order. decide, courts, insufficient matter law.26 At oral suggested reference exchange" narrowing might avoid harsh consequences various amici briefs expressing concerns impact real estate titles. Tr. Oral Arg. 5-10, 19-25. quantity turn another consist second both, election two? Questions embraced certiorari reason, Yee Escondido, ---- - 1522, 1532-1534, 118 153 (1992), term. 34 35 so ordered. 36 whom THOMAS joins, 37 I am accord much reasoning, join reasons. First, while agree do reach through ante, ____, me implausible. Secondly, concluding "respondent it," 38 rested fundamental misconception that, pass "at use." Brief 16. believes operates act, finds "something misnomer." Ibid. But name wrong; is. condemnation: "[T]he entered wrongful acts, sentence decree." Henderson's Distilled Spirits, Wall. 44, 56, 815 (1871). "While, question, offense follows effective condemnation." Motlow State rel. Koeln, 295 97, 99, 55 661, 662, 79 1327 (1935). "in [Government's] ha[s] consummated seizure, suit, condemnation," Confiscation Cases, 454, 460, 196 (1869), whereupon offense," (1806) (Marshall, C.J.) 247-248, (1890), quoted 39 Though disagree here. plurality, understand correctly, say asserts present consequence applying produce produce. Title plurality encompassing protected since, (a)(6) (h) fully applied, considered provision—just (prior forfeiture) law. 40 conclusion, agreed based. simply word deemed include (as law) prior To assume beg question. Besides non sequitur, mistaken. begin insulate described" forfeiture; protects "interest" regarded insulating still covered (h), refers described," forfeited." sum, can, solely focusing includes forfeiture-producing offense. 41 agrees "covers 'property (a),' nonetheless exempted defense." 29. position quite incompatible, since provision. view, individuals "who seized assets involvement transactions." 21. 881(a), class "owners" divested most "former owners" proceedings. difficulty, forced argue interpreted mean Reply 5. Thus, contends, problem exist be, unheard-of rather doctrine—stating hypothesis, genuinely 42 acknowledge difficulty propose well: says "shall forfeiture," forfeiture." former certainly imprecise way saying latter. is, think, imprecision expect culture familiar less interpretations require. locates exists, statement States" flatly contradicts "[t]he States." What already 43 procedures. Subsection 881(d) 881 governed procedures "summary laws," set forth 1602 seq. Section 1604, example, requires Attorney General commence proceedings district "necessary" "for recovery" $8,850, 461 555, 557-558, n. 2, 103 2005, 2008-2009, 76 143 (1983) (detailing circumstances requiring proceedings). If, actually "necessary." circumstances, obtain executive declaration "declaration force final States," specifies is: "Title incurred." 1609(b) Finally, correct, statute-of-limitations provision, 1621,1 state reverts does) institute "action recover" forfeiture.2 44 operation innocent-"owner" innocent-"transferee" provisions—a heavily. 31-35; 10-11. 853, drug-related connection convictions, uses "transferee"—not —to protect acquire occurred.3 variance cover acquiring act. arrives cloud suspicion, impossible imagine (and unable suggest) provide greater postoffense (or "transferees") context explanation, accurately 853 third assert "[f]ollowing 853(n). 853(k) (prohibiting intervening vindicate except (n)). third-party being adjudicated, operated carry interests. 853(c) (codifying forfeiture). valid "amend 853(n)(6). 45 owner/transferee found throughout Code, statutes, see, 715f(a) (allowing return oil "to thereof"); 2409(c) (permitting recover pendente lite, posting bond); 2439(c) (same); 512(a) motor vehicle altered identification number knowledge), consistently "transferees" follow procedure 853: first, second. 1467 (criminal obscenity); 1963 (1988 ed. Supp. III) RICO forfeitures); 2253 sexual exploitation children).4 46 think today recited familiar, one, bears ordinary meaning. 47 "she it." Ante, this, cites brief taking tested transfer," 37-38. positions remand. find inconvenient test looks claimant's awareness occur." 8. Which, either, estopped changing address simple (1) yet attempted change position. (2) certiorari. (That receives derived trafficking entitled 'innocent owner' seeking property." Pet. Cert. i. reformulation inexplicable.) 48 separate case, arose indirectly, argumentation point. believed) measured immediately, otherwise "untenable result": subsequent knew he know committed, 25. deciding view timing wrong, creates severe compel ruling (I course: inconceivable possibility post-illegal-act transferees earlier illegality dealer close friends relatives meet proof ignorance occurred.) escapes principle, answered herself them. 49 For reasons stated, concur 50 THE CHIEF JUSTICE WHITE join, dissenting. 51 Once left Court, appellate counsel began grapple wrong addressed. submit, donee's meets innocence. Instead, threshold dispositive inquiry donee required defective outset. ask asset, undoubted superior claim, value. principles transfers, trusts commercial answer no. whatever donor had, falls claim. asset hands donor, donee. holder knowledge, regarding offenses facts, abstract inquiries, unnecessary resolution 52 affairs later Those dealer's were, just acts; performed us, possibility. 53 Suppose encountered swindler who, knowing offenses, defrauded seek forfeit swindler. trace higher better interpose, yield interest. entertain keep transaction. defect eliminated procured fraud. Thus possible "interest owner," hold inferior 54 Here, course, donee, swindler, same. claimant enforceable save exist, say, limitations. different, transferred full consideration. voidable become unassailable purchaser, heightened lawfully impose laws. terms, perhaps premature transferring tracing federal Boyle Technologies Corp., 487 500, 108 2510, 101 442 (1988); Clearfield Trust Co. 318 363, 63 573, 838 (1943), governing normal conflict-of-law rules, here appears Jersey. explored remand thought anything turned though likely well settled. centuries-old concept adoption Uniform Commercial Code. J. White & R. Summers, Code 186-191 (3d 1988). These control once "subject remains transactions. Cf. Brown, Personal Property 70, pp. 237-238 (2d 1955); Restatement (Second) Trusts §§ 284, 287, 289, 47-48, 54-56 (1959); 34.9, p. 338 primary manageable few number. purchases faith obtains title. rule, reciprocal acquires beyond transferor held. lawful successors faith. Ames, Purchase Value Without Notice, Harv.L.Rev. (1887); 2-403(1) (Official Draft 1978); 1957); 1952). Scott W. Fratcher, Law 284-289, 35-70 (4th Searey, Yale L.J. 447 (1914). 57 Applying sale, from, Bona successors, benefited accepts capable possession, alleges own right. outcome, new value, condemned bizarre surprise. alchemy. Independent Coal Coke 274 640, 647, 714, 717, 71 1270 (1927); Chase National Bank, 252 485, 494, 361, 362, 64 675 (1920); Wright-Blodgett 236 397, 403, 339, 341, 59 637 (1915). By contrast, done stands shoes has. nature donor's interest, assumed, renders Otis Otis, 167 Mass. 245, 246, N.E. 737 (1897) (Holmes, J.) ("A whose trust fund comes conveyance trustee chargeable turn, consideration, notice not. hundred years, uses"). 58 seeks rests defects donor. transferor's transaction, thereof, irrelevant, arcane so-called ample scope instances, consented facilitate Furthermore, marital antecedent debt necessary consideration remand, my theory control. opening premise different adopts, difficult, unnecessary, puzzles SCALIA. obligation leaves scheme centerpiece Nation's enforcement mess. 60 practical difficulties created immense, results start, conflicts principal purpose identified Continuing Criminal Enterprise Act, desire lessen economic enterprises." Caplin Drysdale 491 617, 630, 109 2646, 2654, 105 528 (1989). transfers presume considers equal gives attempting launder exchanging near criminal's diminished seizing purchaser. hand, receiving return, so, safe assume, new-found, albeit illegal, wealth benefit associate shelter reacquired authorities. donative exchange, drain power, able pierce recapture exchange. serious surprising pursue well-settled beneficiary rightful possessor transferor. 61 Another oddity gratuitous deal discovered after. Yet instance, along, expectation clean. assets, out trading partner's undergone significant circumstances: He fair reverse. 62 puzzle concurrence engaging false premise, stand charged own. Forfeiture though, directed more rips reverse Appeals, due respect, dissent Court. syllabus prepared Reporter Decisions convenience reader. Detroit Lumber Co., 200 321, 282, 499. "The them: "(6) All moneys, negotiable instruments, securities, things furnished substance [21 801-904], securities subchapter, supra. 1986 distribution 881(a)(7), "(7) (including leasehold interest) whole lot tract appurtenances improvements, used, manner part, commit, of, subchapter punishable year's imprisonment, subparagraph (7) us. Marshals Service agreement remain pending outcome litigation. "I successfully here, admits Mr. More particularly, where, demonstrated value." 738 854, 860 "In particular, defense' 'no owner.' supplied). implies omissions legitimate (Emphasis original.) "Despite analysis, speaks 'owner' limits 1991). "Furthermore, Parcel Real Known 6109 Grubb Road, 886 618 Cir.1989), determined, reviewing recognizable seized.' Id. 625 (quoting U.S.Code Cong. Admin.News 9522-23)." 101-102. "Moreover, pointed out, explicitly limiting language. Congress." "Long Constitution Colonies—and states during period Confederation—were exercising statutes. Like Exchequer, navigable waters concurrently admiralty. vice-admiralty Colonies function continuity 1700 shortly afterward. Andrews, Vice-Admiralty Courts Colonies, Records Rhode Island, 1617-1752 (ed. Towle, 1936), 1; Period History, vol. 4, ch. 8; Harper, Navigation Laws, 15; Osgood, 18th Century, 185-222, 299-303. condemn cargoes Acts firmly established, apparently colonies. suits brought vessel article condemned, tried jury, followed successful resulted judgments sale." C.J. Hendry Moore, 133, 139-140, 499, 502-503, 663 (1943) (footnotes omitted). Writing Texas, 379 476, 481-482, 85 506, 510, 431 (1965), Stewart explained: "Vivid memory newly independent Americans warrants known writs assistance officers Crown bedeviled colonists. officials blanket authority search pleased imported British denounced worst instrument arbitrary destructive liberty, book,' placed liberty man petty officer.' historic occasion denunciation, 1761 Boston, characterized 'perhaps prominent event inaugurated resistance colonies oppressions mother "Then there," said John Adams, "then scene opposition Great Britain. Then child Independence born." ' Boyd 116 616, [6 524, 530, 746 (1886) ]." 36, 39, 47; 14, 22, 27, 67, 157-159, 161, 163-164, 176. Palmyra, Wheat. 8, 531 (1827). next withdraw penalty Congress. again, remarked whatsoever, aggression cooperation commits offender, thing attaches, whatsoever boat (says Congress) piratical aggression, c., condemned. Nor sort. uncommon course admiralty, acting nations, treat master crew misconduct responsibility thereof. necessity adequate means suppressing insuring indemnity injured party. familiarly smuggling laws; kindred arising embargo non-intercourse acts. short, crew, sort, bind ship, guilty; impliedly submits denounces attached wanton wrongs." Brig Malek Adhel, How. 210, 233-234, 239 (1844). "Beyond controversy, claimant; equally lessee distillery, business, purpose. "Fraud imputed premises; verdict jury frauds information satisfactorily true, heretofore explained, put trial pleadin gs; adopted below, operator distillery frauds, verdict, ignorant distiller." Dobbins's Distillery 96 395, 403-404, (1878). "Thus property—the fruits crime —was seizure. gradually extended 'any possess,' instrumentalities (because notion items State) contraband. Kaplan, Search Seizure: No-Man's Land Law, Calif.L.Rev. 474, 475. apprehend convict criminals recognized; asserted. remedial reflected dual Trespass, replevin, redress aggrieved searches seizures, depended presupposed seized." 303-304, 1648, (1967). Racketeer Influenced Corrupt Organizations (RICO), 1963(a). Even RICO, "proceeds" 1984, added 1963(a)(3) doubt far. S.Rep. 98-225, 191-200 (1983), 3182, 3374-3383; Russello 464 16, 104 296, 78 (1983). 511(a) provided: "(1) manufactured, distributed, dispensed, "(2) raw materials, products, equipment kind use, manufacturing, compounding, processing, delivering, importing, exporting "(3) container paragraph (2). "(4) conveyances, aircraft, vehicles, vessels, transport, transportation, receipt, concealment (2), — "(A) carrier business appear charge consenting privy III; "(B) thereof unlawfully State. "(5) books, records, research, formulas, microfilm, tapes, data title." narrow "probably" prevent absurdity, 27. brief, withholds 10, 21, 25, Calero-Toledo Pearson Yacht Leasing 416 663, 680-684, 94 2080, 2090-2092, 452 (1974). dissent, KENNEDY advocates construe self-executing patterned amalgam secured beneficial entered. authorities proposition extinguished purchaser; assumption springs existence independently. proposal inconsistent Marshall's "nothing taken," post, improper rely defining "puzzling" language, unwise, ignoring text. KENNEDY'S dramatic suggestion "rips out," "centerpiece nation's characterizes "safe" "an associate" "shelter authorities." Post, possessed dealers remote owners; "associate" enterprise temporary custodian owner; indeed, sham 9-10; 17. "Section 306 adds subsections end 881. 215 3398 logic 1988. provides, part: consent, willful blindness 6075(3)(C), 4324. presumably lessors like yacht observe: implied difficult reject constitutional subjected privity consent. id., 364; Goldsmith-Grant 254 [505], 512 [41 191, 65 376 (1921) ]; Ford Coupe Automobile, 272 [321], 333 [47 154, 158, 279 (1926) Van Oster Kansas, [465], 467 134, 354 ]. Similarly, proved uninvolved reasonably expected proscribed property; for, circumstance, conclude served unduly oppressive. Armstrong 364 40, [80 1563, 1569, 1554] (1960)." 689-690, 2094-2095, (footnote 31-32, 37-38; 38. several make point, Bankers Association Amicus Curiae Federal Home Loan Mortgage Corporation 11-12; Amici Dade County Tax Collector 16-17. require transfer. Since Goodwin transfer, clause." show her, profits illeg al 1621 limitations agreed. Plaintiff-Appellee 90-5823 (CA3), 19-23; 14a-15a. appealed consistent authority. Property, 2401 S. Claremont, Independence, Mo., 724 670, 673 (WD Mo.1989). 563, 2011, (forfeiture specifying incorporate 1621). "not [of 881]"—so discussed contrary inapplicable. disposition theoretically likely, massive displacement details referenced section. Any subsequently defendant special ordered establishes hearing (n) worth observing last-mentioned utterly illusory. parallel pattern 881: "owners," 2254(a), 2254(g) III). mechanism innocent—"transferee" move "owners." 981 (civil provision), 982 ed., (parallel incorporating 853).

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