FREDA L. WOLFSON, District Judge.
This lawsuit involves a Verified Complaint filed by the United States of America ("the Government") for Forfeiture against the defendant property, one 2010 Volkswagen Jetta ("the Defendant Property"), pursuant to 21 U.S.C. § 881(a)(4). The matter has been opened to the Court by Michael Battista ("Claimant") on Claimant's motion to set aside the default entered in this case by the Clerk of Court on November 8, 2013, and to vacate the default judgment entered by the Court on January 31, 2014.
For the reasons that follow, Claimant's motion is denied.
The following facts are taken from the Verified Complaint and the briefs and exhibits filed in this case. On August 30, 2013, pursuant to the Warrant for Arrest In Rem issued by the Clerk of the Court on that same day, the United States Marshal Service seized the Defendant Property.
Claimant failed to timely respond to the Verified Complaint. The Government moved for entry of default, which the Clerk of Court entered on November 8, 2013. The Government then moved for default judgment, which the Court granted on January 31, 2014. On April 2, 2015, more than fifteen months after default judgment had been entered, Claimant filed this motion, asserting that his counsel had misfiled the Verified Complaint and had not discovered the document in his office files until March of this year.
The Government opposes the motion on the basis that Claimant lacks standing to challenge the entry of default and default judgment under the 18 U.S.C. § 983(a)(4) and Rule G of the Supplementary Rules for Admiralty or Maritime Claims and Asset Forfeiture Actions ("the Supplemental Rules"). Alternatively, the Government argues that Claimant has not asserted a meritorious defense such that would warrant vacating the default and default judgment. Claimant did not file a reply brief.
Federal Rule of Civil Procedure 60(b) provides that "the court may relieve a party . . . from a final judgment, order, or proceeding" on the grounds of
FED. R. CIV. P. 60(b).
"A court ruling on a motion to set aside a default judgment under Rule 60(b)(1), `must consider the following three factors (1) whether the plaintiff will be prejudiced; (2) whether the defendant has a meritorious defense; and (3) whether the default was the result of the defendant's culpable conduct.'"
At the outset, the Government argues that Claimant lacks statutory standing contest the forfeiture. "For a federal court to have subject-matter jurisdiction over an action, the plaintiff must have standing to bring the action in the first instance." Music Sales Limited v. Charles Dumont & Son, Inc., 800 F.Supp.2d 653, 657 (D.N.J. 2009). "There are three types of standing constitutional, prudential, and statutory."
Graden v. Conexant Systems Inc., 496 F.3d 291 (3d Cir. 2007) (emphasis in original). A claimant must meet all relevant standing requirements to proceed with his or her claim. See United States v. $822,877.16 in U.S. Currency, 330 F.3d 141, 150 n.9 (3d Cir. 2003).
The Court will first determine, as a threshold matter, whether Claimant has statutory standing to challenge the forfeiture. "To establish statutory standing [in a civil forfeiture action], a claimant must comply with the procedural requirements delineated in the Supplemental Rules and the Civil Asset Forfeiture Reform Act of 2000 (`CAFRA')." United States v. $263,327.95, 936 F.Supp.2d 468, 471-72 (D.N.J. 2013); see also United States v. $102,535.00 in U.S. Currency, 499 Fed. App'x 134, 136 (3d. Cir. 2012). § 983(a)(4)(A) states,
Id. Rule G(5) states, in relevant part, that "[u]nless the court for good cause sets a different time, the claim must be filed (A) by the time stated in a direct notice sent under Rule G(4)(b). . . ." Supplemental Rules, G(5)(a)(ii).
The Notice of Forfeiture, which was sent to Claimant's attorney,
Because Claimant has no standing, there is no "case or controversy" for the Court to adjudicate. Therefore, Claimant's motion to vacate default and default judgment is denied.
Because the I find that Claimant lacks statutory standing to contest the forfeiture, I need not reach the question of whether Claimant has presented a meritorious defense such that would justify vacating default and default judgment.
Claimant's motion to vacate is denied. An appropriate order shall follow.
After the initial seizure, administrative forfeiture proceedings commenced. According to the Government, the DEA sent a Notice of Seizure to Battista's address by certified mail. Battista sent an administrative claim through his counsel, in apparent response to the DEA's Notice of Seizure. See Dec. 4, 2013 Gaeta Decl. Ex. A. The Government further represents that on or about June 17, 2013, the DEA sent a letter to counsel for Battista, advising him that the claim had been accepted and that the matter had been referred to the United States Attorney's Office, after which the Government filed the Verified Complaint.
Here, the Government published notice on an official government website on September 4, 2013, for a period of no less than 30 days, affording Claimant an alternative method of receiving notice of the forfeiture action.