United States of America v. Approx. $1,200,000.00 in U.S. Currency, et al.

Filing 24

STIPULATION and ORDER signed by Judge William B. Shubb on 9/21/05 ORDERING Final Judgment be entered w/respect to $22,304.89 that is the subject of Stipulation and Proposed Order 23, that sum shall be returned to Claimant Bullivant Houser Bailey. It is FURTHER ORDERED that Final Judgment be entered against Claimant Bullivant Houser Bailey w/respects to all other assets identified in the Verifed Complaint. (Sherman, T) Modified on 9/23/2005 (Sherman, T).

United States of America v. Approx. $1,200,000.00 in U.S. Currency, et al.

Doc. 24

Case 2:05-cv-00149-RRB-KJM

Document 24

Filed 09/23/2005

Page 1 of 10

1 M. Taylor Florence, SBN 159695 BULLIVANT HOUSER BAILEY PC 2 11335 Gold Express Drive, Suite 105 Sacramento, California 95670-4491 3 Telephone: [phone] Facsimile: 916.852.5777 4 Attorneys for Claimant 5 6 7 8 9 10 12 13 vs. STIPULATION AND [PROPOSED] ORDER FOR FINAL JUDGMENT REGARDING $22,304.89 IN EARNED ATTORNEYS' FEES AND COSTS UNITED STATES DISTRICT COURT EASTERN DISTRICT OF CALIFORNIA SACRAMENTO DIVISION Case No.: CIV-S-05-0149 WBS KJM

11 UNITED STATES OF AMERICA, Plaintiff,

14 APPROXIMATELY $177,695.11 IN FUNDS CONNECTED TO A 15 TRANSFER TO THE UNITED STATES OF AMERICA FROM 16 BULLIVANT HOUSER BAILEY, 17 Defendant. 18 BULLIVANT HOUSER BAILEY, PC, JOHN W. HOLLIS, JUDITH L. 19 HOLLIS, and ROBERT LEWIS BROWN, a.k.a. MATTHEW 20 SCHACHTER, 21 22 23 24 25 26 27 28 Claimants.

It is hereby stipulated by and between plaintiff United States of America and claimants Bullivant Houser Bailey, PC, John W. Hollis and Judith L. Hollis, and Robert Lewis Brown a.k.a. Matthew Schachter (Mr. Brown), by and through their respective counsel of record, as follows: 1. On or about October 12, 2004, the United States of America provided notice to the law firm of Bullivant Houser Bailey, PC, that $200,000 held in the ­1­
STIPULATION AND PROPOSED ORDER FOR FINAL JUDGMENT REGARDING $22,304.89 IN EARNED ATTORNEYS' FEES AND COSTS

Dockets.Justia.com

Case 2:05-cv-00149-RRB-KJM

Document 24

Filed 09/23/2005

Page 2 of 10

1 law firm's trust account on behalf of its then-client, Mr. Brown, was alleged to be 2 the proceeds of illegal activity and subject to forfeiture pursuant to Title 18 U.S.C. 3 §§ 981(a)(1)(A) and (C). 4 2. On October 18, 2004, Bullivant Houser Bailey voluntarily delivered 5 to the United States Attorney's Office a check in the amount of $200,000, 6 representing the entire trust balance held by Bullivant Houser Bailey on behalf of 7 Mr. Brown. The $200,000 check was delivered to the United States Attorney's 8 Office in lieu of the United States taking formal action to seize such funds. 9 3. On or about December 9, 2004, Bullivant Houser Bailey and the 10 United States entered a stipulation extending the United States' time to file a 11 complaint for forfeiture regarding the $200,000 check that had been delivered by 12 Bullivant Houser Bailey noting, among other things, that the parties, through their 13 respective counsel, had been actively engaged in discussions in an attempt to 14 resolve the issues surrounding the seizure of these funds. 15 4. Claimant Bullivant Houser Bailey contends that $22,304.89 of the 16 $200,000 it returned to the United States Attorney's Office represented earned 17 attorneys' fees and expended costs representing Mr. Brown prior to receiving 18 notification from the government that the funds it held in trust could be subject to 19 forfeiture. Consistent with the representations of claimant Bullivant Houser 20 Bailey, the United States of America filed a Verified Complaint for Forfeiture In 21 Rem on January 24, 2005, against $177,695.11 in funds connected to a transfer to 22 the United States of American from Bullivant Houser Bailey. This complaint 23 sought forfeiture of the entire sum of money transferred from Bullivant Houser 24 Bailey to the United States Attorney's Office, less the amount of money claimed 25 by Bullivant Houser Bailey as earned fees and costs in the matter prior to its 26 receipt of notice that the funds it held in trust could be subject to forfeiture. 27 5. To avoid the uncertainty and expense of further litigation, the United 28 States and claimants Bullivant Houser Bailey, PC, John W. Hollis and Judith L. ­2­
STIPULATION AND PROPOSED ORDER FOR FINAL JUDGMENT REGARDING $22,304.89 IN EARNED ATTORNEYS' FEES AND COSTS

Case 2:05-cv-00149-RRB-KJM

Document 24

Filed 09/23/2005

Page 3 of 10

1 Hollis, and Robert Lewis Brown a.k.a. Matthew Schachter, desire to stipulate to 2 the entry of a final judgment on the following terms: 3 (a) Upon entry of this Stipulation for Final Judgment, but no later 4 than thirty (30) days thereafter, $22,304.89, shall be returned to claimant Bullivant 5 Houser Bailey, PC, through their attorney, M. Taylor Florence. The United States 6 Department of Treasury shall issue a check in the amount of $22,304.89, made 7 payable to Bullivant Houser Bailey, PC, 11335 Gold Express Drive, Suite 105, 8 Sacramento, California 95670-4491. 9 (b) Claimants John W. Hollis, Judith L. Hollis, and Robert Lewis 10 Brown a.k.a. Matthew Schachter, through their respective counsel, hereby waive 11 any claim as to the $22,304.89 that shall be returned to Bullivant Houser Bailey, 12 PC. 13 (c) Claimants Bullivant Houser Bailey, PC, John W. Hollis, Judith 14 L. Hollis, Robert Lewis Brown a.k.a. Matthew Schachter, hereby release plaintiff 15 United States of America, and its servants, agents, and employees and all other 16 public entities, their servants, agents, and employees, from any and all liability 17 arising out of or in any way connected with the $22,304.89 that is subject to this 18 Stipulation. This is a full and final release applying to all unknown and 19 unanticipated injuries, and/or damages arising out of said transfer or forfeiture, as 20 well as to those now known or disclosed. The parties to this agreement agree to 21 waive the provisions of California Civil Code § 1542, which provides: "A general 22 release does not extend to claims which the creditor does not know or suspect to 23 exist in his favor at the time of executing the release, which if known by him must 24 have materially affected his settlement with the debtor." (d) Claimant Bullivant Houser Bailey hereby waives any and all 25 claim or right to interest that may have accrued on the $22,304.89 which the 26 United States has agreed to return to claimant Bullivant Houser Bailey. 27 28 ­3­
STIPULATION AND PROPOSED ORDER FOR FINAL JUDGMENT REGARDING $22,304.89 IN EARNED ATTORNEYS' FEES AND COSTS

Case 2:05-cv-00149-RRB-KJM

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1

(e)

Bullivant Houser Bailey waives any claim or right to any other

2 assets identified in the Verified Complaint for Forfeiture In Rem in cause number 3 Civ.S-05-0149 WBS KJM (E.D. Cal.) and consents to the entry of a forfeiture 4 judgment against it in that cause with respect to such assets. 5 7 8 9 DATED: 10 11 12 13 14 DATED: 15 16 17 18 19 20 21 22 23 24 25 26 27 28 ­4­
STIPULATION AND PROPOSED ORDER FOR FINAL JUDGMENT REGARDING $22,304.89 IN EARNED ATTORNEYS' FEES AND COSTS

(f)

Bullivant Houser Bailey and the United States agree to bear

6 their own costs and attorneys' fees.

9/20

, 2005.

McGREGOR W. SCOTT United States Attorney /s/ Courtney J. Linn COURTNEY J. LINN, Assistant United States Attorney

4/22

, 2005.

/s/ Matthew R. Jacobs MATTHEW R. JACOBS, Attorney for Potential Claimants John W. Hollis and Judith L. Hollis /s/ Matthew Bockmon MATTHEW BOCKMON, Assistant Federal Public Defender Attorney for Potential Claimant Robert Lewis Brown a.k.a. Matthew Schachter /s/ Matthew Schachter Matthew Schachter /s/ M. Taylor Florence M. TAYLOR FLORENCE, Attorney for Potential Claimant Bullivant Houser Bailey, PC

DATED:

6/28

, 2005.

DATED: DATED:

6/28 9/21

, 2005. , 2005.

(original signatures retained by attorney)

Case 2:05-cv-00149-RRB-KJM

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Filed 09/23/2005

Page 5 of 10

1 2 3

ORDER FOR FINAL JUDGMENT
The Court finding the facts as stipulated by the parties; IT IS HEREBY ORDERED that Final Judgment be entered with respect to

4 $22,304.89 that is the subject of the Stipulation of the parties. No later than thirty (30) days 5
from the date of entry of this Order, that sum shall be returned to claimant Bullivant Houser Bailey, PC, through its attorney, M. Taylor Florence. The United States Department of

6 7

8 Treasury shall issue a check in the amount of $22,304.89, made payable to Bullivant Houser 9 Bailey, PC, 11335 Gold Express Drive, Suite 105, Sacramento, California 95670-4491. 10 11 12 13 14 15 16 17 18 19 /s/ M. Taylor Florence 20 M. Taylor Florence 21 22 23 24 25 26 27 28 ­5­
STIPULATION AND PROPOSED ORDER FOR FINAL JUDGMENT REGARDING $22,304.89 IN EARNED ATTORNEYS' FEES AND COSTS 3440615.1

IT IS FURTHER ORDERED that Final Judgment be entered against Claimant Bullivant Houser Bailey with respect to all other assets identified in the Verified Complaint for Forfeiture In Rem in Cause Number Civ.S-05-0149 WBS KJM (E.D. Cal.). DONE this 21st day of September, 2005.

Presented by:

Attorney for Bullivant Houser Bailey, PC

Case 2:05-cv-00149-RRB-KJM

Document 24

Filed 09/23/2005

Page 6 of 10

1 M. Taylor Florence, SBN 159695 BULLIVANT HOUSER BAILEY PC 2 11335 Gold Express Drive, Suite 105 Sacramento, California 95670-4491 3 Telephone: [phone] Facsimile: 916.852.5777 4 Attorneys for Claimant 5 6 7 8 9 10 12 13 vs. STIPULATION AND [PROPOSED] ORDER FOR FINAL JUDGMENT REGARDING $22,304.89 IN EARNED ATTORNEYS' FEES AND COSTS UNITED STATES DISTRICT COURT EASTERN DISTRICT OF CALIFORNIA SACRAMENTO DIVISION Case No.: CIV-S-05-0149 WBS KJM

11 UNITED STATES OF AMERICA, Plaintiff,

14 APPROXIMATELY $177,695.11 IN FUNDS CONNECTED TO A 15 TRANSFER TO THE UNITED STATES OF AMERICA FROM 16 BULLIVANT HOUSER BAILEY, 17 Defendant. 18 BULLIVANT HOUSER BAILEY, PC, JOHN W. HOLLIS, JUDITH L. 19 HOLLIS, and ROBERT LEWIS BROWN, a.k.a. MATTHEW 20 SCHACHTER, 21 22 23 24 25 26 27 28 Claimants.

It is hereby stipulated by and between plaintiff United States of America and claimants Bullivant Houser Bailey, PC, John W. Hollis and Judith L. Hollis, and Robert Lewis Brown a.k.a. Matthew Schachter (Mr. Brown), by and through their respective counsel of record, as follows: 1. On or about October 12, 2004, the United States of America provided notice to the law firm of Bullivant Houser Bailey, PC, that $200,000 held in the ­1­
STIPULATION AND PROPOSED ORDER FOR FINAL JUDGMENT REGARDING $22,304.89 IN EARNED ATTORNEYS' FEES AND COSTS

Case 2:05-cv-00149-RRB-KJM

Document 24

Filed 09/23/2005

Page 7 of 10

1 law firm's trust account on behalf of its then-client, Mr. Brown, was alleged to be 2 the proceeds of illegal activity and subject to forfeiture pursuant to Title 18 U.S.C. 3 §§ 981(a)(1)(A) and (C). 4 2. On October 18, 2004, Bullivant Houser Bailey voluntarily delivered 5 to the United States Attorney's Office a check in the amount of $200,000, 6 representing the entire trust balance held by Bullivant Houser Bailey on behalf of 7 Mr. Brown. The $200,000 check was delivered to the United States Attorney's 8 Office in lieu of the United States taking formal action to seize such funds. 9 3. On or about December 9, 2004, Bullivant Houser Bailey and the 10 United States entered a stipulation extending the United States' time to file a 11 complaint for forfeiture regarding the $200,000 check that had been delivered by 12 Bullivant Houser Bailey noting, among other things, that the parties, through their 13 respective counsel, had been actively engaged in discussions in an attempt to 14 resolve the issues surrounding the seizure of these funds. 15 4. Claimant Bullivant Houser Bailey contends that $22,304.89 of the 16 $200,000 it returned to the United States Attorney's Office represented earned 17 attorneys' fees and expended costs representing Mr. Brown prior to receiving 18 notification from the government that the funds it held in trust could be subject to 19 forfeiture. Consistent with the representations of claimant Bullivant Houser 20 Bailey, the United States of America filed a Verified Complaint for Forfeiture In 21 Rem on January 24, 2005, against $177,695.11 in funds connected to a transfer to 22 the United States of American from Bullivant Houser Bailey. This complaint 23 sought forfeiture of the entire sum of money transferred from Bullivant Houser 24 Bailey to the United States Attorney's Office, less the amount of money claimed 25 by Bullivant Houser Bailey as earned fees and costs in the matter prior to its 26 receipt of notice that the funds it held in trust could be subject to forfeiture. 27 5. To avoid the uncertainty and expense of further litigation, the United 28 States and claimants Bullivant Houser Bailey, PC, John W. Hollis and Judith L. ­2­
STIPULATION AND PROPOSED ORDER FOR FINAL JUDGMENT REGARDING $22,304.89 IN EARNED ATTORNEYS' FEES AND COSTS

Case 2:05-cv-00149-RRB-KJM

Document 24

Filed 09/23/2005

Page 8 of 10

1 Hollis, and Robert Lewis Brown a.k.a. Matthew Schachter, desire to stipulate to 2 the entry of a final judgment on the following terms: 3 (a) Upon entry of this Stipulation for Final Judgment, but no later 4 than thirty (30) days thereafter, $22,304.89, shall be returned to claimant Bullivant 5 Houser Bailey, PC, through their attorney, M. Taylor Florence. The United States 6 Department of Treasury shall issue a check in the amount of $22,304.89, made 7 payable to Bullivant Houser Bailey, PC, 11335 Gold Express Drive, Suite 105, 8 Sacramento, California 95670-4491. 9 (b) Claimants John W. Hollis, Judith L. Hollis, and Robert Lewis 10 Brown a.k.a. Matthew Schachter, through their respective counsel, hereby waive 11 any claim as to the $22,304.89 that shall be returned to Bullivant Houser Bailey, 12 PC. 13 (c) Claimants Bullivant Houser Bailey, PC, John W. Hollis, Judith 14 L. Hollis, Robert Lewis Brown a.k.a. Matthew Schachter, hereby release plaintiff 15 United States of America, and its servants, agents, and employees and all other 16 public entities, their servants, agents, and employees, from any and all liability 17 arising out of or in any way connected with the $22,304.89 that is subject to this 18 Stipulation. This is a full and final release applying to all unknown and 19 unanticipated injuries, and/or damages arising out of said transfer or forfeiture, as 20 well as to those now known or disclosed. The parties to this agreement agree to 21 waive the provisions of California Civil Code § 1542, which provides: "A general 22 release does not extend to claims which the creditor does not know or suspect to 23 exist in his favor at the time of executing the release, which if known by him must 24 have materially affected his settlement with the debtor." (d) Claimant Bullivant Houser Bailey hereby waives any and all 25 claim or right to interest that may have accrued on the $22,304.89 which the 26 United States has agreed to return to claimant Bullivant Houser Bailey. 27 28 ­3­
STIPULATION AND PROPOSED ORDER FOR FINAL JUDGMENT REGARDING $22,304.89 IN EARNED ATTORNEYS' FEES AND COSTS

Case 2:05-cv-00149-RRB-KJM

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Page 9 of 10

1

(e)

Bullivant Houser Bailey waives any claim or right to any other

2 assets identified in the Verified Complaint for Forfeiture In Rem in cause number 3 Civ.S-05-0149 WBS KJM (E.D. Cal.) and consents to the entry of a forfeiture 4 judgment against it in that cause with respect to such assets. 5 7 8 9 DATED: 10 11 12 13 14 DATED: 15 16 17 18 19 20 21 22 23 24 25 26 27 28 ­4­
STIPULATION AND PROPOSED ORDER FOR FINAL JUDGMENT REGARDING $22,304.89 IN EARNED ATTORNEYS' FEES AND COSTS

(f)

Bullivant Houser Bailey and the United States agree to bear

6 their own costs and attorneys' fees.

9/20

, 2005.

McGREGOR W. SCOTT United States Attorney /s/ Courtney J. Linn COURTNEY J. LINN, Assistant United States Attorney

4/22

, 2005.

/s/ Matthew R. Jacobs MATTHEW R. JACOBS, Attorney for Potential Claimants John W. Hollis and Judith L. Hollis /s/ Matthew Bockmon MATTHEW BOCKMON, Assistant Federal Public Defender Attorney for Potential Claimant Robert Lewis Brown a.k.a. Matthew Schachter /s/ Matthew Schachter Matthew Schachter /s/ M. Taylor Florence M. TAYLOR FLORENCE, Attorney for Potential Claimant Bullivant Houser Bailey, PC

DATED:

6/28

, 2005.

DATED: DATED:

6/28 9/21

, 2005. , 2005.

(original signatures retained by attorney)

Case 2:05-cv-00149-RRB-KJM

Document 24

Filed 09/23/2005

Page 10 of 10

1 2 3

ORDER FOR FINAL JUDGMENT
The Court finding the facts as stipulated by the parties; IT IS HEREBY ORDERED that Final Judgment be entered with respect to

4 $22,304.89 that is the subject of the Stipulation of the parties. No later than thirty (30) days 5
from the date of entry of this Order, that sum shall be returned to claimant Bullivant Houser Bailey, PC, through its attorney, M. Taylor Florence. The United States Department of

6 7

8 Treasury shall issue a check in the amount of $22,304.89, made payable to Bullivant Houser 9 Bailey, PC, 11335 Gold Express Drive, Suite 105, Sacramento, California 95670-4491. 10 11 12 13 14 15 16 17 18 19 /s/ M. Taylor Florence 20 M. Taylor Florence 21 22 23 24 25 26 27 28 ­5­
STIPULATION AND PROPOSED ORDER FOR FINAL JUDGMENT REGARDING $22,304.89 IN EARNED ATTORNEYS' FEES AND COSTS 3440615.1

IT IS FURTHER ORDERED that Final Judgment be entered against Claimant Bullivant Houser Bailey with respect to all other assets identified in the Verified Complaint for Forfeiture In Rem in Cause Number Civ.S-05-0149 WBS KJM (E.D. Cal.). DONE this 21st day of September, 2005.

Presented by:

Attorney for Bullivant Houser Bailey, PC