United States v. Pierre Clifton Marshall

The defendant in this case was entitled to the return of a parcel of forfeited real property but, because the government had sold the property, the monetary equivalent had to be restored to him instead. We are called on to decide what date should be used for the substitute valuation. We agree with the district court that the appropriate yardstick is the property’s value when the government sold it and that, because on that date the debt attributable to the property exceeded the defendant’s equity in it, the government owes no damages.

FACTS AND PROCEDURAL HISTORY

Defendant Pierre Clifton Marshall and his wife bought a house on Arminta Street, Canoga Park, California, in 1990, with title being taken in the names of Marshall’s wife and his mother. The purchase price was $287,000, of which $247,000 was financed.

Marshall was arrested in 1992 for distribution of heroin. At the time of the arrest, police searched Marshall’s house on Arminta Street and found growing marijuana plants. At the same time, three automobiles belonging to Marshall were seized.

Immediately following the arrest, the two banks holding deeds of trust on the Arminta property stopped receiving payments…