Quintana-Aguayo v. Sabanera, 235 F.3d 682, 1st Cir. (2000)

235 F.3d 682 (1st Cir.
2000)
UNITED STATES, PLAINTIFF, APPELLEE,

V.
LUIS RAUL QUINTANA-AGUAYO; HACIENDA
SABANERA-CIUDAD CABALLISTICA, INC.; THE ROSE
INC., APPELLANTS,
MILDRED QUINTANA; YOLAMIS QUINTANA; OMAYRA
CARRION-FONTANEZ, CLAIMANTS, APPELLEES,
HACIENDA SABANERA, ET AL., DEFENDANTS,
APPELLEES.
UNITED STATES, PLAINTIFF, APPELLEE,
V.
LUIS RAUL QUINTANA-AGUAYO; HACIENDA
SABANERA-CIUDAD CABALLISTICA, INC.,
APPELLANTS,
ROSE INC.; MILDRED QUINTANA; YOLAMIS
QUINTANA, CLAIMANTS,
OMAYRA CARRION-FONTANEZ; A) HACIENDA
SABANERA, APPELLANTS,
B) HOTEL D'ROSE, ET AL., DEFENDANTS.
No. 99-1378, No. 99-2017.
United States Court of Appeals, For the First Circuit.

Submitted Nov. 1, 2000.
Decided December 29, 2000.
APPEALS FROM THE UNITED STATES DISTRICT COURT FOR

THE DISTRICT OF PUERTO RICO. Hon. Jose Antonio Fuste, U.S.
District Judge.
Rafael F. Castro Lang on brief for appellants.
Guillermo Gil, United States Attorney, Miguel A. Fernandez, Assistant
United States Attorney, and Jose Javier Santos-Mimoso, Assistant United
States Attorney, on brief for appellee, United States.
Before Torruella, Chief Judge, Lynch and Lipez, Circuit Judges.

Per Curiam.
In this consolidated appeal, claimants seek interlocutory review of decisions of

the district court resulting in the seizure of property during the pendency of a
civil forfeiture action.1 We dismiss the appeal for want of jurisdiction.
In 1998, the government initiated a civil action in rem by filing a complaint for
forfeiture of property owned by convicted drug-dealer Luis Quintana-Aguayo.
The property includes the real property and other assets of Hacienda SabaneraCiudad Caballistica, Inc., a horse ranch. 21 U.S.C. 881(a)(6) and (7) and 18
U.S.C. 981. The ranch was brought within the district court's in rem
jurisdiction by posting notice and filing a lis pendens.
Subsequently, alleging that the ranch was being used for criminal purposes, the
government sought possession for the duration of the forfeiture action. After a
three-day, adversarial hearing pursuant to United States v. James Daniel Good
Real Property, 510 U.S. 43 (1993), the district court found that the government
had made an adequate, preliminary showing of probable cause to believe that
the property was related to crime. On that basis, the court later issued a warrant
ordering the United States Marshal to seize the ranch, with the duty to operate
and conserve it.2
Claimants filed notices of appeal from both the preliminary finding of probable
cause and, upon denial of their motion for reconsideration, from the issuance of
the seizure warrant.3 The government denies that there is appellate jurisdiction.
Since claimants argue that our jurisdiction over the appeal from the finding of
probable cause derives from our jurisdiction over the appeal from the issuance
of the warrant, we address only the seizure warrant.
I.
Claimants argue that the issuance of the seizure warrant is appealable as a

collateral order. The collateral order doctrine permits review of certain orders
which do not terminate actions by disposing of all rights of all parties, but
conclusively resolve important, disputed questions which are completely
separate from the merits and evade adequate review on appeal. Coopers &
Lybrand v. Livesay, 437 U.S. 463, 468, 98 S.Ct. 2454, 2458 (1978). The
doctrine is applied narrowly and interpreted strictly. Digital Equipment Corp. v.
Desktop Direct, Inc., 511 U.S. 863, 867-868, 114 S.Ct. 1992, 1995-96 (1994);
Federal Deposit Insurance Corp. v. Ogden Corp., 202 F.3d 454, 458 (1st Cir.
2000). It permits immediate appeal only in limited circumstances when the
important goal of the final judgment rule4 --the effective, efficient
administration of justice--is not undermined or is counterbalanced by other
weighty goals. United States v. Kouri-Perez, 187 F.3d 1, 5 (1st Cir. 1999); In re
Licht & Semenoff, 796 F.2d 564, 569 (1st Cir. 1986).
6
In this circuit, an order qualifying for immediate review under the doctrine
must:
(1) concern a collateral issue so conceptually distinct from other issues being
litigated in the underlying action that an immediate appeal would neither disrupt
the main action, nor threaten to deprive the appellate court of useful context
which might be derived from subsequent developments in the litigation;
(2) completely and conclusively resolve the collateral issue;
(3) infringe rights which appellant could not effectively vindicate in an appeal
after final judgment in the case; and
10
(4) involve an important or unsettled legal issue, rather than merely challenge
discretionary trial court rulings.
11
Kouri-Perez, 187 F.3d at 5. All four criteria must be satisfied. In re Licht, 796
F.2d at 571.
12
With respect to the third requirement, claimants contend that immediate review
is necessary to avoid irreparable harm. They assert that the government is
mismanaging the ranch, and they will have no recourse if they ultimately
prevail in the forfeiture action. However, immediate appeal is not needed to
avoid the claimed harm. Appealability must be decided for classes of orders,
ignoring injustices peculiar to the case at hand. Digital, 511 U.S. at 868; 114
S.Ct. at 1996. The issue here is whether such a seizure is in itself so deleterious
that it evades adequate review on appeal. If the government is mismanaging the
ranch, claimants may seek recourse in the district court.5 We will not assume
that the court will countenance misfeasance. The seizure ousted claimants from,
but did not close, the ranch. Such seizures do not generally render pyrrhic
subsequent appellate victories. See United States v. Victoria-21, 3 F.3d 571,
575-76 (2nd Cir. 1993)(no irreparable harm from diminution of business). The
alleged irreparable harm, waste due to mismanagement, is purely speculative.
Claimants must show "much more" than potential injury. Firestone Tire &
Rubber Co., v. Risjord, 449 U.S. 368, 376-77, 101 S.Ct. 669, 674-75 (1981);
Licht, 796 F.2d at 571.
13
Although eviction imposes costs, the policy against piecemeal appeals "almost
never operates without some cost." Digital, 511 U.S. at 872, 114 S.Ct. at 1998;
Lauro Lines S.R.L. v. Chasser, 490 U.S. 495, 499-501, 109 S.Ct. 1976, 1978-80
(1989)(issue is adequacy, not perfection, of vindication on appeal). Immediate
review is not justified merely because appellants will recover less money at
judgment, can identify some interest that will be irretrievably lost or have
reasons to prefer immediate review. Digital, 511 U.S. at 872; 114 S.Ct. at 1998;
United States v. Michelle's Lounge, 126 F.3d 1006, 1009 (7th Cir. 1997)
(Michelle's Lounge II).
14
In addition, for the collateral order doctrine to apply the matters encompassed
in the appeal must be "completely separate" from and not "affect or be affected
by" the merits. Coopers & Lybrand v. Livesay, 437 U.S. 463, 468, 98 S.Ct.
2454, 2458 (1978); Cohen v. Beneficial Industrial Loan Corp., 337 U.S. 541,
546, 69 S.Ct. 1221, 1225 (1949). Claimants contend that the seizure warrant is
separate because it involves only the government's ability to control the ranch
pre-judgment, not the ranch's final forfeitability. The issue is not, however,
whether the warrant and the final decision have some distinct traits, Digital,
511 U.S. at 872 (party's agility in dubbing right irrelevant to jurisdiction), but
their conceptual independence. See Sobel v. Heckler Congressional Committee,
709 F.2d 129, 131-132 (1st Cir. 1989)(per curiam)(doctrine inapplicable to
attachment dissolved for improbability of prevailing on the merits).
15
Here, the government can prevail in the forfeiture only by ultimately proving
probable cause for believing that the property is related to crime. That is the
same type of showing that supports the seizure. United States v. Michelle's
Lounge, 39 F.3d 684, 705 (7th Cir. 1994)(concurring opinion)(seizure is
intertwined with merits). Immediate appeal would, consequently, engender
repetitive review. Johnson v. Jones, 515 U.S. 304, 311, 115 S.Ct. 2151, 2155
(1995)(separateness requirement protects against repetitive review); Van
Cauwenberghe v. Baird, 486 U.S. 517, 527-528, 108 S.Ct. 1945, 1952 (1988)
(immediate review of issues enmeshed in merits would waste judicial
resources). See also Federal Deposit Insurance Corporation v. Elio, 39 F.3d
1239, 1249 n. 10 (1st Cir. 1994)(questioning doctrine's applicability to
attachment order involving only an exercise of discretion based on factual
findings enmeshed with merits).
II.
16
Claimants also argue that the seizure warrant is reviewable because it is

effectively an injunction or, alternatively, a receivership. Since the seizure ousts
claimants from their property and puts the marshal in charge, the warrant, they
say, is analogous to an injunction or receivership, permitting interlocutory
review under 28 U.S.C. 1292(a)(1) or (a)(2).6
17
The argument is untenable. An injunction is an order directed at a party,

enforceable by contempt, designed to protect relief sought in the action.
Bogosian v. Woloohojian Realty Corp., 923 F.2d 898, 901 (1st Cir. 1991). The
analogy is "inapt" in the context of in rem actions. Michelle's Lounge, 39 F.3d
at 693. In addition, claimants fail to establish the irreparable harm needed to
support interlocutory review by analogy to an injunction. Casas Office
Machines, Inc. v. Mita Copystar America, Inc. 42 F.3d 668, 672-673 (1st Cir.
1994); United States v. Victoria-21, 3 F.3d at 575 (no interlocutory review of
ex parte seizure diminishing, but not closing, business); cf. United States v. All
Assets of Statewide Auto Parts Inc., 971 F.2d 896, 901 (2nd Cir. 1992)
(interlocutory review of ex parte order closing business). See also 16 Wright,
Miller & Marcus, Fed. Prac. & Pro.: Civil 2d (1996), 3925, p. 217
(irreparable harm relevant to interlocutory appeals of receiverships).
18
Even if the analogy were more perfect, argument by analogy does not suffice to
bring seizure warrants within the scope of 1292. Claimants "argue that the ...
order is in practical effect the appointment of a receiver. The answer to this
contention is that statutes authorizing interlocutory appeals are strictly
construed." Florida v. United States, 285 F.2d 596, 600 (8th Cir. 1960). See
also In re Unanue, 998 F.2d 28, 32 (1st Cir. 1993)(injunction exception
construed narrowly); United States v. Ianniello, 824 F.2d 203 (2nd Cir. 1987);
F.T.C. v. Overseas Unlimited Agency, Inc., 873 F.2d 1233, 1235 (9th Cir.
1989)(receivership exception construed narrowly); In re Memorial Estates, Inc.,
797 F.2d 516, 520 (7th Cir. 1986)(same) The interlocutory review statute
reflects a balancing of interests that cannot simply be imported mutatis
mutandis into the civil forfeiture context. See 16 Wright, Miller & Marcus, Fed.
Prac. & Pro.: Civil 2d (1996), 3920, pp. 7-8.
19
Among other concerns, 1292(a)(2) applies to appeals from orders appointing

federal equity receivers. Such receivers are non-governmental employees,7
often, though not necessarily, appointed pursuant to the court's inherent
equitable powers, at the behest of private parties, to protect purely private
interests by preserving property pending judgment.8 See In re Klein, 940 F.2d
1075, 1077 n.2 (7th Cir. 1991)( 1292(a)(2) limited to federal equity receivers);
In re Memorial Estates, Inc., 797 F.2d 516, 520 (7th Cir. 1986)(given the
procedural safeguards, bankruptcy trustees are not receivers for purposes of
interlocutory appeal). Here, in contrast, the court ordered the marshal to seize
the ranch pursuant to a statutory scheme designed to serve the public purpose
of deterring crime, upon finding, after an adversarial hearing, of probable cause
to believe that the ranch was related to crime. Seizure was authorized by 21
U.S.C. 881(b) and 18 U.S.C. 981(b) upon the finding of probable cause.9
The seizure placed the Attorney General in control of the property.10 21 U.S.C.
881(c) and 18 U.S.C. 981(c). Such a seizure is not an equitable remedy.
20
Finally, since appealability must be decided for classes of orders, Digital, 511
U.S. at 868; 114 S.Ct. at 1996, claimants' collateral-order and injunction
theories, if adopted, would have the undesirable consequence of making a
plethora of seizures amenable to interlocutory review. United States v.
Michelle's Lounge, 39 F.3d 684, 693 (7th Cir. 1994)(injunction theory
profligate in that "all civil forfeiture seizures would be reviewable in the first
instance if seen as injunctions"); United States v. Victoria-21, 3 F.3d 571, 575
(2nd Cir. 1993)(allowing review of routine seizures as injunctions would
expand appellate jurisdiction over interlocutory orders in numerous forfeitures).
21
Appeal dismissed.
Notes:
1
Cf. United States v. Derman, 211 F.3d 175, 182 (1st Cir. 2000)(in a criminal
context, a preliminary order of forfeiture entered under Fed. R. Crim. P. 32(d)
(2) after the verdict, but before sentencing, becomes final for purposes of
appeal only upon entry of judgment).
Under 21 U.S.C. 881(b) and 18 U.S.C. 981(b), forfeitable property could be

seized pursuant to, inter alia, the Supplemental Rules for Certain Admiralty and
Maritime Claims or Fed. R. Crim. P. 41. Such seizures and the forfeiture
actions were governed by customs laws, 19 U.S.C. 1602 et seq. 21 U.S.C.
881 (d) and 18 U.S.C. 981(d). The Admiralty Rules authorized the clerk to
issue a warrant for the arrest in rem of property upon the government's filing of
an appropriate complaint. See Fed. R. Civ. P. Supp. C; United States v.
Approximately 2,538.85 Shares, 988 F.2d 1281 (1st Cir. 1993). In Good, supra,
however, the Supreme Court held that due process requires an adversarial
hearing before seizing real property.
Claimants style their notice as an appeal from the order granting the seizure
warrant. Since the issue is not briefed, we express no opinion about this
characterization of the order from which claimants appeal. See In re Newport
Savings and Loan Association, 928 F.2d 472, 479 (1st Cir. 1991).
4
See 28 U.S.C. 1291.
In the warrant, the court instructed the marshal to conserve the property and
noted its power to issue any order necessary to effectuate the warrant.
Subsection (a)(1) allows interlocutory review of orders "granting, continuing,

modifying, refusing or dissolving injunctions, or refusing to dissolve or modify
injunctions ..." Subsection (a)(2) licenses interlocutory review of "orders
appointing receivers, or refusing orders to wind up receiverships or to take steps
to accomplish the purposes thereof ..."
See 28 U.S.C. 958.
See Consolidated Rail Corp. v. Fore River Railway Co., 861 F.2d 322, 326-327
(1st Cir. 1988)(court may exercise discretion to appoint receiver upon
considering fraudulent conduct, relative risks of harm, inadequacy of legal
remedies, chance of success on merits, likelihood of irreparable injury, etc.).
See also In the Matter of McGaughey, 24 F.3d 904, 907 (7th Cir. 1994)(federal
court has inherent power to appoint receiver to manage defendant's assets
pending litigation); National Partnership Investment Corp., v. National Housing
Development Corp., 153 F.3d 1289, 1291 (11th Cir. 1998)(appointment of
receiver in equity is an ancillary remedy).
The Civil Asset Forfeiture Reform Act of 2000, applicable to forfeiture

proceedings commenced on or after 120 days from its effective date, April 25,
2000, extensively revised the laws governing seizures of real property. See 18
U.S.C. 983, 985. We express no opinion on the propriety of interlocutory
appeals under the act.
10
The marshal's obligation to maintain the property is integral to the seizure

itself. See Averil v. Smith, 84 U.S. (17 Wall) 82, 83-94 (1873)(marshal is
obligated to conserve seized property); Matoil Service & Transport Co., Inc. v.
Schneider, 129 F.2d 392, 394 (3rd Cir. 1942)(same).

Quintana-Aguayo v. Sabanera, 235 F.3d 682, 1st Cir. (2000)

Uploaded by

Copyright:

Available Formats

Quintana-Aguayo v. Sabanera, 235 F.3d 682, 1st Cir. (2000)

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Quintana-Aguayo v. Sabanera, 235 F.3d 682, 1st Cir. (2000)

Uploaded by

Copyright:

Available Formats

235 F.3d 682 (1st Cir.

UNITED STATES, PLAINTIFF, APPELLEE,

United States Court of Appeals, For the First Circuit.

APPEALS FROM THE UNITED STATES DISTRICT COURT FOR

Before Torruella, Chief Judge, Lynch and Lipez, Circuit Judges.

In this consolidated appeal, claimants seek interlocutory review of decisions of

Claimants argue that the issuance of the seizure warrant is appealable as a

(2) completely and conclusively resolve the collateral issue;

Claimants also argue that the seizure warrant is reviewable because it is

The argument is untenable. An injunction is an order directed at a party,

Among other concerns, 1292(a)(2) applies to appeals from orders appointing

Under 21 U.S.C. 881(b) and 18 U.S.C. 981(b), forfeitable property could be

See 28 U.S.C. 1291.

Subsection (a)(1) allows interlocutory review of orders "granting, continuing,

See 28 U.S.C. 958.

The Civil Asset Forfeiture Reform Act of 2000, applicable to forfeiture

The marshal's obligation to maintain the property is integral to the seizure

You might also like