People v. One Parcel of Land

—In this case we hold that a trial court has inherent equitable authority to set aside a default judgment of forfeiture of real property at which drug trafficking had occurred, based on extrinsic fraud or mistake.

The property at issue is a four-plex apartment building in Richmond. The owner, Jerline L. Wallace, is an absentee landlord who lives in Fairfield. On September 22, 1989, the People filed a complaint for forfeiture of the building (Health & Saf. Code, § 11470 et seq.), on the ground cocaine and cocaine base had been possessed for sale and sold on the premises. Wallace, represented by attorney Michael J. Oliver, filed a claim opposing the forfeiture. The People demurred on the grounds the claim did not indicate Wallace’s interest in the property and the verification was undated. On November 8, 1989, the court sustained the demurrer and granted Wallace 10 days to file an amended claim, properly dated and describing her interest in the property.

Wallace, still represented by attorney Oliver, did not file the amended claim until December 8, 1989, nearly three weeks after the filing deadline had passed. Five months later the People moved for entry of a default…