People v. Superior Court

Opinion

Petitioners the People of the State of California seek a writ of mandate directing the Los Angeles County Superior Court to (1) set aside its ruling that claimant and real party in interest Maria Plascencia has established standing to challenge the forfeiture of $68,317 seized by the

When Plascencia needed money, she would reach inside the box spring, take the amount she needed, and replace the rest. Although she periodically counted the cash, she did not keep written records. She never put money in a bank, believing it was safe in the box spring. She explained, “Me and that [box spring] were together for more than 20 years because it was my bank.”

Plascencia told Velasquez about the money in the box spring. She trusted Velasquez although she knew he had been previously convicted of possession of drugs for sale.

e. The trial court’s ruling and the petition for writ of mandate.

On August 2, 2001, after the evidentiary hearing, the trial court found Plascencia had established a prima facie case of standing sufficient to entitle her to a jury hearing on the question of forfeiture. The court stated, “My determination is that [Plascencia] has made out a prima facie case of standing by competent evidence . . . [a]nd I do not now make a determination concerning credibility. I make only a determination that [Plascencia] has supplied enough evidence to entitle her to go to trial on the matter. []j] The record reflects that there has been a jury demand. She is entitled to a jury trial on the matter. fl|] The jury will be empowered to rule on matters of credibility if the case actually is tried to a jury.”

The People filed a petition seeking a writ of mandate requiring the trial court to set aside its August 2, 2001 ruling and make factual findings, including credibility determinations, on the question of whether Plascencia had established, by a preponderance of the evidence, that she owned the cash in question. We granted a stay of the proceedings in order to review the People’s petition, issued an order to show cause, and ordered further briefing on the issues.

Contentions

The People contend that a third party’s standing (i.e., his or her legally cognizable interest in the seized property) to challenge a forfeiture is a threshold issue that must be determined by the trial court, acting as the trier

Plascencia, on the other hand, urges that the trial court correctly found she had established a prima facie case that she owned the money, sufficient to entitle her to a jury hearing on the issue of forfeiture. She asserts that she is entitled to a jury finding on the question of ownership of the money and posits that a trial court ruling on the question of standing must use the standard applicable to summary judgment motions. Because Plascencia presented competent evidence that, if believed by a jury, would have established her ownership of the money, she raised a triable issue of material fact and thus met her burden to prove standing.

Discussion

1. Overview of California civil drug forfeiture laws.

A forfeiture proceeding is a civil in rem action in which property is considered the defendant, on the fiction that the property is the guilty party. (Jauregi v. Superior Court (1999) 72 Cal.App.4th 931 , 937-938 [ 85 Cal.Rptr.2d 553 ]; People v. $28,500 United States Currency (1996) 51 Cal.App.4th 447 , 462 [ 59 Cal.Rptr.2d 239 ].) Statutes imposing forfeitures are disfavored and are to be “ ‘strictly construed in favor of the persons against whom they are sought to be imposed.’ [Citation.]” (People v. $28,500 United States Currency, supra, 51 Cal.App.4th at p. 463.)

A claimant has both a statutory and a California constitutional right to a jury trial on civil in rem forfeiture proceedings. (§ 11488.5, subd. (c)(2); Cal. Const., art. I, § 16; People v. One 1941 Chevrolet Coupe (1951) 37 Cal.2d 283 , 300 [ 231 P.2d 832 ] (hereinafter Chevrolet Coupe).

“California’s drug asset forfeiture law has undergone numerous revisions since its enactment in 1972.” (Mundy v. Superior Court (1995) 31 Cal.App.4th 1396 , 1400 [ 37 Cal.Rptr.2d 568 ]; People v. Nazem (1996) 51 Cal.App.4th 1225 , 1231 [ 59 Cal.Rptr.2d 794 ] [noting that California’s statutory forfeiture scheme “has had a long and confusing history.”].) The current law, section 11469 et seq., as amended effective 1994, sets forth a comprehensive scheme governing forfeitures of controlled substances, property,

Subdivision (e) provides, in pertinent part, “Unless the court or jury finds that the seized property was used for a purpose for which forfeiture is permitted, the court shall order the seized property released to the person it determines is entitled thereto, [f] If the court or jury finds that the seized property was used for a purpose for which forfeiture is permitted, but does not find that a person claiming an interest therein, to which the court has determined he or she is entitled, had actual knowledge that the seized property would be or was used for a purpose for which forfeiture is permitted and consented to that use, the court shall order the seized property released to the claimant.” (§ 11488.5, subd. (e), italics added.)

Standing is typically treated as a threshold issue, in that without it no justiciable controversy exists. “As a general principle, standing to invoke the judicial process requires an actual justiciable controversy as to which the complainant has a real interest in the ultimate adjudication because he or she has either suffered or is about to suffer an injury . . .” (Holmes v. California Nat. Guard (2001) 90 Cal.App.4th 297 , 314-315 [ 109 Cal.Rptr.2d 154 ].) “Without standing, there is no actual or justiciable controversy, and courts will not entertain such cases.” (Clifford S. v. Superior Court (1995) 38 Cal.App.4th 747 , 751 [ 45 Cal.Rptr.2d 333 ]; Common Cause v. Board of Supervisors (1989) 49 Cal.3d 432 , 438 [ 261 Cal.Rptr. 574 , 777 P.2d 610 ] [contentions based on lack of standing involve jurisdictional challenges and may be raised at any time in the proceeding]; McKinny v. Board of Trustees (1982) 31 Cal.3d 79 , 90 [ 181 Cal.Rptr. 549 , 642 P.2d 460 ].) “The purpose of a standing requirement is to ensure that the courts will decide only actual controversies between parties with a sufficient interest in the subject matter of the dispute to press their case with vigor.” (Common Cause v. Board of Supervisors, supra, 49 Cal.3d at p. 439.) Typically, the issue of standing is decided by reference to the allegations made in a party’s complaint. (Clifford S. v. Superior Court, supra, 38 Cal.App.4th at p. 751.)

A claimant in a civil forfeiture proceeding “ ‘must show he [or she] has a recognizable legal or equitable interest in the seized property’ in order to establish standing; it is the claimant’s burden to establish an ‘interest in

California and federal courts considering the drug forfeiture laws have reiterated that standing is a “threshold legal issue.” (Jauregi v. Superior Court, supra, 72 Cal.App.4th at p. 939; People v. $28,500 United States Currency, supra, 51 Cal.App.4th at pp. 466-467; People v. $241,600 United States Currency (1998) 67 Cal.App.4th 1100 , 1107-1108 [ 79 Cal.Rptr.2d 588 ]; US. v. $9,041,598.68 (5th Cir. 1998) 163 F.3d 238 , 245 [ 167 A.L.R. Fed. 781 ] [“[t]he issue of standing is one of law”].) “Absent standing, the claimant in a forfeiture action cannot contest the government’s decision to seek forfeiture; this is the rule in state and federal proceedings.” (Jauregi v. Superior Court, supra, 72 Cal.App.4th at p. 938; People v. $28,500 United States Currency, supra, 51 Cal.App.4th at p. 467.)

California appellate decisions to date have not addressed the precise question before us. In Jauregi v. Superior Court, supra, 72 Cal.App.4th 931 , the People filed “a motion to compel [the claimant] to prove his standing to contest the forfeiture in advance of a trial on the merits ...” (Jauregi v. Superior Court, supra, 72 Cal.App.4th at p. 935.) At the subsequent “hearing on standing,” which the trial court indicated would be “ ‘handled as a law and motion matter with proof by way of declaration, as opposed to oral evidence’ ” (ibid.), the claimant failed to present admissible evidence establishing a legally cognizable interest in the seized cash and, as a result, the trial court found the claimant had failed to establish standing. The appellate court concluded that the provisions of the Evidence Code pertaining to hearsay evidence applied to proceedings under section 11488.4, subdivision (g), and a claimant must prove standing through admissible evidence. (Jauregi, at pp. 933, 939, 943.) Jauregi reasoned that “[t]he aspect of a forfeiture action which requires a claimant to ‘show’ standing by ‘proving’ an interest in the property in issue obviously requires an evidentiary hearing.” (I d. at p. 940.) However, Jauregi expressly declined to address whether “the claimant’s standing must be tried by a jury unless the right is waived,” and did not consider “any other issue related to the procedure employed by the trial court in hearing and deciding the prosecutor’s motion.” (Id. at p. 939, in. 12.)

Other cases have held that summary judgment was proper on the issue of standing where the undisputed facts showed the claimant had no legally cognizable interest in the seized property (People v. $28,500 United States Currency, supra, 51 Cal.App.4th at pp. 469-470), and that summary judgment on the issue of standing was improper where triable issues of fact

3. Section 11488.4, subdivision (g), does not mandate that the trial court resolve factual issues underlying the question of standing.

When interpreting a statute, “ ‘our fundamental task . . . is to determine the Legislature’s intent so as to effectuate the law’s purpose. [Citation.] We begin by examining the statute’s words, giving them a plain and commonsense meaning. [Citation.]”’ (People v. Acosta (2002) 29 Cal.4th 105 , 112 [ 124 Cal.Rptr.2d 435 , 52 P.3d 624 ]; People v. $31,500 United States Currency (1995) 32 Cal.App.4th 1442 , 1459 [ 38 Cal.Rptr.2d 836 ].) If possible, “ ‘ “significance should be given to every word, phrase, sentence and part of an act in pursuance of the legislative purpose.” [Citation.]”’ (DuBois v. Workers’ Comp. Appeals Bd. (1993) 5 Cal.4th 382 , 388 [ 20 Cal.Rptr.2d 523 , 853 P.2d 978 ].) Where the “legislative intent is expressed in unambiguous terms, we must treat the statutory language as conclusive; ‘no resort to extrinsic aids is necessary or proper.’ [Citation.]” (Equilon Enterprises v. Consumer Cause, Inc. (2002) 29 Cal.4th 53 , 61 [ 124 Cal.Rptr.2d 507 , 52 P.3d 685 ].)

Where the statutory language is susceptible to more than one reasonable interpretation, however, we look to extrinsic aids, including the objects of the legislation, public policy, and the statutory scheme of which the statute is a part. (Hoechst Celanese Corp. v. Franchise Tax Bd. (2001) 25 Cal.4th 508 , 519 [ 106 Cal.Rptr.2d 548 , 22 P.3d 324 ]; Torres v. Parkhouse Tire Service, Inc. (2001) 26 Cal.4th 995 , 1003 [ 111 Cal.Rptr.2d 564 , 30 P.3d 57 ].) We do not consider the particular clause or section in isolation, but instead examine it in the context of the statutory framework as a whole, keeping in mind the scope and purpose of the provision and harmonizing it with the statutory scheme. (People v. Acosta, supra, 29 Cal.4th at p. 112; DuBois v. Workers’ Comp. Appeals Bd., supra, 5 Cal.4th at p. 388.)

Here, the plain language of subdivision (g)—that a claimant can move for return of property “if that person can show standing by proving an interest in the property”—imposes upon the claimant the burden of proving a sufficient legal or equitable interest in the seized property. (§ 11488.4, subd. (g); Jauregi v. Superior Court, supra, 72 Cal.App.4th at pp. 938-939;

Beyond these basic principles, however, the statutory scheme is not a model of clarity in regard to the procedural mechanisms by which the claimant is to prove standing, including the questions of whether, when the facts underlying the standing determination are controverted, the court or the jury is to decide disputed factual issues. Moreover, it does not inexorably flow from the fact that standing is a threshold legal question that the People may, by simply filing a motion purporting to require that the claimant prove his or her standing, require the court and the claimant to engage in a full-blown evidentiary hearing prior to the forfeiture hearing.

We conclude that standing is a threshold question of law for the trial court where the matter can be determined on the undisputed facts. Where, however, the determination of a claimant’s standing to challenge the government’s forfeiture turns on disputed facts or credibility determinations, and the issue of the claimant’s ownership and the merits of the forfeiture action are inextricably intertwined, the jury must make factual findings on the» issue of the claimant’s ownership or interest in the seized property before the trial court decides whether the facts, as determined by the jury, confer standing as a matter of law. (Cf. Sheldon Appel Co. v. Albert & Oliker (1989) 47 Cal.3d 863 , 877 [ 254 Cal.Rptr. 336 , 765 P.2d 498 ] (Sheldon Appel).) We further hold that section 11488.4, subdivision (g) requires that the claimant must prove his or her standing by showing a legally cognizable interest in the property by a preponderance of the evidence, before the government is put to its burden of proof.

Our conclusion rests upon several principles. Standing to challenge a forfeiture is a question of law (Jauregi v. Superior Court, supra, 72 Cal.App.4th at p. 939; U.S. v. $9,041,598.68, supra, 163 F.3d at p. 245; U.S.

Not infrequently, the trial court is charged with resolving disputed issues of fact that underlie its resolution of a legal issue. (E.g., People v. Betts (2002) 102 Cal.App.4th 922 [ 126 Cal.Rptr.2d 64 ] [noting split of authority among states regarding whether disputed jurisdictional facts must be tried by the jury, and adopting minority view that resolution of controverted facts underlying court’s subject matter jurisdiction is a question for the court]; Khawar v. Globe Internal, Inc. (1998) 19 Cal.4th 254 , 264 [ 79 Cal.Rptr.2d 178 , 965 P.2d 696 ] [whether plaintiff in defamation action is a public figure is question of law for trial court; trial court’s resolution of disputed factual questions bearing on the public figure determination is reviewed for substantial evidence]; Windsor Square Homeowners Assn. v. Citation Homes (1997) 54 Cal.App.4th 547 , 557 [ 62 Cal.Rptr.2d 818 ] [facts underlying the applicability of the res judicata defense are tried to the court, not a jury]; Evid. Code, §§ 402, 405 [trial court decides foundational and preliminary fact issues affecting the admissibility of evidence].)

However, in some instances the jury determines the facts underlying an issue of law. For example, in Sheldon Appel, supra, 47 Cal.3d 863 , the California Supreme Court considered whether the jury or the court was required to determine, in a malicious prosecution action, whether the prior action had been brought without probable cause. (Id. at p. 874.) The existence of probable cause had “traditionally been viewed as a question of law to

We believe that a similar structure is mandated here by section 11488.4, subdivision (g), considered in the context of the statutory scheme. As noted, section 11488.5, subdivision (e)’s provisions—that unless the trier of fact finds the seized property was used for a forfeitable purpose, the court “shall order the seized property released to the person it determines is entitled thereto” and “If the court or jury finds that the seized property was used for a purpose for which forfeiture is permitted, but does not find that a person claiming an interest therein, to which the court has determined he or she is entitled”—strongly suggest that the court is to make the legal determination of whether the claimant has standing. Under our interpretation, the trial court does just that, either prior to the forfeiture hearing (if the facts underlying the standing inquiry are undisputed) or at the forfeiture hearing based upon the facts found by the jury (if the facts underlying the standing inquiry are disputed and a jury trial is not waived).

Section 11488.5, subdivision (a)(2) strongly suggests that the jury is to try the factual issues relevant to standing. As noted, section 11488.5, subdivision (a)(2) states that a claimant who claims “that the property was assigned

Here, the question of standing—i.e., whether Plascencia owned the cash found in the box spring—is manifestly a factual issue. Plascencia’s ownership of the money cannot, under the facts of this case, be separated from the merits of the forfeiture action. Indeed, the question of Plascencia’s ownership of the money is the forfeiture case. The cash found in the box spring cannot simultaneously have been the fruits of Velasquez’s drug dealing and Plascencia’s legitimately earned savings and the proceeds from her sale of property. If the trier of fact determines that Plascencia owns the money and derived it from her legitimate business dealings, then the trier of fact will ispo facto have rejected any claim that the “owner of any interest in the seized property consented to the use of the property with knowledge that it would be or was used for a purpose for which forfeiture is permitted, . . .” (§ 11488.5, subd. (d)(1).) In other words, the question of standing and the merits of the forfeiture proceeding collapse into one and the same inquiry. Plascencia has presented admissible evidence that, if believed by the jury, would establish her ownership of the money. Under these circumstances, assigning to the trial court the task of resolving disputed factual issues and making credibility determinations at a pretrial hearing would completely eviscerate Plascencia’s right to a jury.

The right to trial by jury is a basic and fundamental part of our system of jurisprudence and should be zealously guarded by the courts. (E.g., Byram v. Superior Court (1977) 74 Cal.App.3d 648 , 654 [ 141 Cal.Rptr. 604 ]; Fireman’s Fund Ins. Companies v. Younesi (1996) 48 Cal.App.4th 451 , 459 [ 55 Cal.Rptr.2d 671 ].) The Legislature cannot require procedures that impair a litigant’s constitutional right to jury trial. (Chevrolet

The People urge that the trial court must resolve disputed factual issues underlying the question of standing because the question of whether a party has standing to challenge a forfeiture is jurisdictional. However, it has been recognized in the federal system that when a jurisdictional issue turns upon disputed facts intertwined with the merits of the case, the court should not resolve the factual dispute prior to trial but should employ a summary judgment standard. “Ordinarily, where a jurisdictional issue is separable from the merits of a case, the court may determine jurisdiction” and is “ ‘free to hear evidence regarding jurisdiction and to rule on that issue prior to trial, resolving factual disputes where necessary. . . . “[T]he existence of disputed material facts will not preclude the trial court from evaluating for itself the merits of jurisdictional claims.” ’ [Citations.]” (Roberts v. Corrothers (9th Cir. 1987) 812 F.2d 1173 , 1177.) However, these standards “are not appropriate for determining jurisdiction in a case like this, where issues of jurisdiction and substance are intertwined. A court may not resolve genuinely disputed facts where ‘the question of jurisdiction is dependent on the resolution of factual issues going to the merits.’ [Citations.] In such a case, the district court assumes the truth of allegations . . . unless controverted by undisputed facts in the record.” (Id. at p. 1177; U.S. v. North Carolina (4th Cir. 1999) 180 F.3d 574 , 580 [“When a factual attack on subject matter jurisdiction involves the merits of a dispute, ‘ “[t]he proper course of action for the district court . . . is to find that jurisdiction exists and deal with the objection as a direct attack on the merits of the plaintiffs case.” ’ [Citation.]”]; Cameron v. Children’s Hosp. Medical Center (6th Cir. 1997) 131 F.3d 1167 , 1170 [whether a federal district court has subject matter jurisdiction is “a question for the court, not a jury, to decide, even if the determination requires making factual findings, unless the jurisdictional issue is inextricably bound to the merits of the case.” (Italics added.)]; McMorgan & Co. v. First California Mortg. Co. (N.D.Cal. 1995) 916 F.Supp. 966 , 973-974.)

The People next point to federal cases holding that where the issue of standing turns upon disputed issues of fact, the trial court is required to, or may, hold an evidentiary hearing to resolve disputed facts related to standing. (U.S. v. 1998 BMW “I” Convertible (8th Cir. 2000) 235 F.3d 397 , 400; Bischoff v. Osceola County, Fla. (11th Cir. 2000) 222 F.3d 874 , 881-882, fn. 10; United States v. $364,960.00 in U.S. Currency (5th Cir. 1981) 661 F.2d 319 ,326.) (lib) However, we are not bound to follow the precedents of the lower federal courts. (People v. Cleveland (2001) 25 Cal.4th 466 , 480 [ 106 Cal.Rptr.2d 313 , 21 P.3d 1225 ].) In any event, we note that the majority of federal courts hold that a claimant need only produce evidence establishing a colorable claim, a standard which seems to us to be in tension with the resolution of the issue at a full-blown evidentiary hearing intended to resolve disputed facts. (E.g., U.S. v. One Parcel of Real Property (1st Cir. 1991) 942 F.2d 74 , 78 [to satisfy standing requirement, all “that needs to be shown is a ‘facially colorable interest in the proceedings sufficient to satisfy the case-or-controversy requirement and “prudential considerations defining and limiting the role of the court” ’ [Citations.]”]; U.S. v. Cambio Exacto, S.A., supra, 166 F.3d at p. 527 [‘“[A]n allegation of ownership and some evidence of ownership are together sufficient to establish standing to contest a civil forfeiture’ ”]; U.S. v. $9,041,598.68, supra, 163 F.3d at p. 245 [claimant need not prove the merits of his underlying claim to establish standing, but need only show a facially colorable interest in the proceedings]; In re Seizure of $82,000 more or less (W.D.Mo. 2000) 119 F.Supp.2d 1013 , 1017 [“Definitive proof of ownership is not needed to establish standing”]; U.S. v. Forfeiture, Stop Six Center (N.D.Tex. 1991) 781 F.Supp. 1200 , 1201-1202 [claimant required to show only a “‘facially colorable interest in the proceedings’ ” at summary judgment stage; requiring evidence documenting source of funds “improperly accelerates Claimant’s burden of proving innocent ownership”].)

Finally, the People urge that our prior unpublished opinion in People v. $68,317 United States Currency, supra, B122554, is the law of the case and mandated that the trial court determine the factual issues relevant to standing. We disagree. The law of the case doctrine holds that when an appellate opinion states a principle or rule of law necessary to the decision, that principle or rule becomes the law of the case and must be adhered to through its subsequent progress in the lower court and upon subsequent appeal. (People v. Ramos (1997) 15 Cal.4th 1133 , 1161 [ 64 Cal.Rptr.2d 892 , 938 P.2d 950 ]; Clemente v. State of California (1985) 40 Cal.3d 202 , 211-212 [ 219 Cal.Rptr. 445 , 707 P.2d 818 ].) For the doctrine to apply, “ ‘ “the point of law involved must have been necessary to the prior decision, . . . the matter must have been actually presented and determined by the court, and . . . application of the doctrine will not result in an unjust decision.” [Citations.]’ [Citation.]” (People v. Ramos, supra, 15 Cal.4th at p. 1161.)

Our prior opinion expressly declined to consider or rule upon the question of whether the issue of standing should be decided by the jury, as the issue

In sum, the trial court correctly ruled that the determination of disputed facts and the evaluation of witness credibility was for the jury. Once the jury has rendered a factual finding on the question of Plascencia’s interest in the seized currency, then the trial court can properly resolve the legal question of whether Plascencia has standing to contest the forfeiture. Accordingly, the People’s petition for a writ of mandate is denied.

Disposition

The People’s petition for writ of mandate is denied and the matter is remanded for further proceedings consistent with the opinions expressed herein. The stay entered by this court on August 24, 2001, is hereby lifted.

Klein, P. J., and Croskey, J., concurred.