United States Sixth Circuit

In an in rem forfeiture action in connection with a drug distribution and money laundering investigation wherein the United States Drug Enforcement Administration seized $22,050 from petitioner's office, judgment of the district court denying his motion to set aside default and entry of judgment in favor of the United States is reversed where: 1) in civil forfeiture cases such as this one, where the question is whether to excuse a known claimant's failure to file a verified claim and answer in the allotted time, district courts should analyze the case using the generally applicable Federal Rules (Rule 55(c)) rather than under the appellate court's requirement of "strict compliance" with the forfeiture rules; 2) the government would not have been prejudiced by setting aside the default; 3) claimant has asserted meritorious defenses to the forfeiture claim; and 4) on remand, it must be determined whether claimant was culpable under Rule 55(c) for the default by willfully failing to appear and plead.

Appellate Information

• Decided 02/16/2010
• Published 02/16/2010

Judges

• Before MARTIN, BOGGS, and COLE, Circuit Judges.

Court

• United States Sixth Circuit

Counsel

• For Appellees:
  
• ON BRIEF:Peter J. Strianse, Tune, Entrekin & White, P.C., Nashville, Tennessee, for Appellant. Debra Teufel Phillips, Assistant United States Attorney, Nashville, Tennessee, for Appellee.