Second Circuit: In Re: 650 Fifth Avenue Company & Related Properties

 

In determining probable cause for forfeiture, refusing to grant an adverse inference after discovery non-production is within the broad discretion afforded the court.

Deprivation of the commercial building's owners of the rights of management, including improvement, selection of and negotiation with tenants, and taking of rental revenues constituted a seizure.

Seizure of rental income is a form of taking the underlying property, not a taking of an interest in property, so the statute required appropriate procedures -- either a hearing or a finding of exigency.

Subsequent finding of probable cause doesn't retroactively justify the earlier taking of rents -- government must repay all rents seized prior to the court's finding.



In Re: 650 Fifth Avenue Company & Related Properties