HomeMy WebLinkAbout14-114 - United States Government - Memorandum of Understanding (Traveler's Choice Motel)14 -114
Council Approval 1/21/14
U.S. Department of Justice
United States Marshals Service
MEMORANDUM OF UNDERSTANDING
BETWEEN
UNITED STATES GOVERNMENT
AND
CITY OF TUKWILA
On August 27, 2013, the United States filed a Civil Complaint for Forfeiture In Rem against the
real property located at 3747 S. 146th Street, Tukwila, Washington, King County parcel number
004000 -0911, also commonly known as the Travelers Choice Motel. See Docket No. 1; United
States v. 14420 Tukwila Intl Blvd., et al., C13 -1532 JCC, WDWA.
All parties who appeared in this action to claim an interest in the above - captioned defendant
real property agreed to its forfeiture and withdrew or settled their claim.
On August 5, 2014, the Court in the above referenced civil forfeiture matter entered a
Judgment of Forfeiture, forfeiting the real property located at 3747 S. 146th Street, Tukwila,
Washington, King County parcel number 004000 -0911, also commonly known as the Travelers
Choice Motel, in its entirety to the United States, with no right or title existing in any other
party. See Docket No. 106.
Pursuant to terms of the attached Judgment of Forfeiture, which incorporates the terms of the
attached Stipulated Settlement Agreement between the United States and BBCN Bank, the
government will transfer all right, title and interest in the real property, commonly known as
the Traveler Choice Motel, to the City of Tukwila via a Quit Claim Deed.
Digitally signed
by PAUL BAXLEY
Date: 2014.08.05
Signed: 14:40:18- 07'00'
Paul L. Baxley, on behalf of the United States
065
Signed:
Jim Herton, on :e alf of the City of Tukwila
19-0ja
001
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Case 2:13 -cv- 01532 -JCC Document 106 Filed 08/05/14 Page 1 of 4
THE HONORABLE JOHN C. COUGHENOUR
UNITED STATES DISTRICT COURT
WESTERN DISTRICT OF WASHINGTON
AT SEATTLE
UNITED STATES OF AMERICA,
Plaintiff,
v.
REAL PROPERTY LOCATED AT
14420 TUKWILA INTERNATIONAL
BOULEVARD, TUKWILA,
WASHINGTON, KING COUNTY
PARCEL NUMBER 004000 -0175, et al.,
Defendants.
CASE NO. C13 -1532 -JCC
JUDGMENT OF FORFEITURE OF
REAL PROPERTY LOCATED AT
3747 S. 146TH STREET
This matter comes before the Court on the government's motion for entry of a judgment
of forfeiture of the real property located at 3747 S. 146th Street, Tukwila, Washington, King
County parcel number 004000 -0911, also commonly known as the Travelers Choice Motel,
together with its buildings, improvements, appurtenances, fixtures, attachments and easements.
(Dkt. No. 104.)
The government filed its initial verified Complaint for forfeiture in rem on August 27,
2013, seeking forfeiture of the Travelers Choice Motel, along with certain other property. (Dkt.
No. 1.) The government's initial Complaint for forfeiture in rem alleged that the Defendant Real
Property was subject to forfeiture pursuant to 21 U.S.C. § 881(a)(7), for violations of 21 U.S.C. §
856(a)(2) (maintaining a drug involved premises) and 21 U.S.C. § 841(a)(1) (distribution of
JUDGMENT OF FORFEITURE OF REAL
PROPERTY LOCATED AT 3747 S. 146TH
STREET
PAGE - 1
002
Case 2 :13 -cv- 01532 -JCC Document 106 Filed 08/05/14 Page 2 of 4
controlled substances); and 18 U.S.C. § 981(a)(1)(A) for violation of 18 U.S.C. §
1956(a)(1)(B)(i) (money laundering to conceal or disguise the proceeds of specified unlawful
activity).
On September 6, 2013, Kulwinder Saroya, by and through his counsel, filed a verified
claim to the Travelers Choice Motel. (Dkt. No. 18.) On September 26, 2013, BBCN Bank, by
and through its counsel, filed a verified claim to the Travelers Choice Motel. (Dkt. No. 59.) On
September 26, 2013, Whidbey Island Bank, by and through its counsel, filed a verified claim to
the Travelers Choice Motel. (Dkt. No. 61.) On October 23, 2013, BBCN Bank, by and through
its counsel, filed an Answer to the verified complaint for forfeiture in rem. (Dkt. No. 68.)
On January 7, 2014, after being granted leave by the Court, the United States filed its
Amended Complaint for Forfeiture in rem against the defendant Travelers Choice Motel, as well
as other real and personal property. (Dkt. No. 74.) The amended complaint maintained the same
cause of action against the Travelers Choice Motel.
Notice of the amended forfeiture action was published on the www.forfeiture.gov website
for at least thirty consecutive days, starting on January 10, 2014. All interested persons were
advised to file their claims pursuant to Supplemental Rule G(5) of the Federal Rules of Civil
Procedure with the Clerk of the Court within sixty days after the first date of publication and to
serve their answers to the Complaint within twenty -one days after filing a claim.
On March 4, 2014, the United States, Claimant Jaspal Singh, by and through his counsel,
Claimant Kulwinder Saroya, by and through his counsel, and potential Interested Parties Joga
Singh Saroya, Balwinder Kaur, Balwant Kaur, Amandeep Kaur, and Kanwaljit Kaur, entered
into a settlement agreement wherein Claimants Jaspal Singh and Kulwinder Saroya agreed to the
withdrawal of their claims to the defendant Travelers Choice Motel, and potential interested
parties Joga Singh Saroya, Balwinder Kaur, Balwant Kaur, Amandeep Kaur, and Kanwaljit Kaur
agreed not to assert an interest or file a claim as to the defendant Travelers Choice Motel. (Dkt.
No. 79.)
JUDGMENT OF FORFEITURE OF REAL
PROPERTY LOCATED AT 3747 S. 146TH
STREET
PAGE -2
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Case 2:13 -cv- 01532 -JCC Document 106 Filed 08/05/14 Page 3 of 4
On April 29, 2014, the United States and Claimant BBCN Bank, by and through its
counsel, entered into a settlement agreement wherein Claimant BBCN Bank agreed to withdraw
its claim. (Dkt. No. 89.) In consideration for the withdrawal of this claim, the United States
agreed that upon the entry of a Judgment of Forfeiture, the United States will pay $900,000.00 in
United States funds to Claimant BBCN Bank. Id. This payment will be comprised of the full
proceeds of a Government to Government transfer between the United States and the City of
Tukwila and shall be in full satisfaction of Claimant BBCN Bank's interest in the above -
described defendant real property. Id.
On June 26, 2014, the United States and Claimant Whidbey Island Bank, by and through
its counsel, entered into a settlement agreement wherein Claimant Whidbey Island Bank agreed
to the withdrawal of its claim to the above - described defendant real property. (Dkt. No. 95.)
All parties believed to have an interest in the Travelers Choice Motel have been properly
served. All parties who have appeared in this action to claim an interest in the above - captioned
defendant real property have agreed to its forfeiture and withdrawn or settled their claim.
More than sixty days have passed since the notice of the forfeiture action was published
on the www.forfeiture.gov website. To date, no other claims to the Travelers Choice Motel have
been filed and no other answers to the complaint have been filed, and the time for doing so has
expired.
Now, therefore, upon Motion of the Plaintiff for a Judgment finally forfeiting the
defendant real property located at 3747 S. 146th Street, Tukwila, Washington, King County
parcel number 004000 -0911, also commonly known as the Travelers Choice Motel, together
with its buildings, improvements, appurtenances, fixtures, attachments and easements, to the
United States of America, it is hereby ORDERED, ADJUDGED and DECREED as follows:
1. This Court has jurisdiction over this action under 28 U.S.C. §§ 1345 and 1355,
and venue pursuant to 28 U.S.C. § 1395.
2. The defendant property located at 3747 S. 146th Street, Tukwila, Washington,
JUDGMENT OF FORFEITURE OF REAL
PROPERTY LOCATED AT 3747 S. 146TH
STREET
PAGE -3
004
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Case 2:13 -cv- 01532 -JCC Document 106 Filed 08/05/14 Page 4 of 4
King County Parcel number 004000 -0911, also commonly known as the Travelers Choice Motel,
together with its buildings, improvements, appurtenances, fixtures, attachments and easements,
more particularly described as:
THE EAST 88 FEET OF LOT 11, BLOCK 7, ADAMS HOME TRACTS,
ACCORDING TO THE PLAT THEREOF RECORDED IN VOLUME 11 OF
PLATS, PAGE(S) 31, IN KING COUNTY, WASHINGTON, EXCEPT THE
NORTH 10 FEET THEREOF CONVEYED TO THE CITY OF TUKWILA BY
DEED RECORDED UNDER RECORDING NUMBER 9208261189;
is hereby forfeited to the United States of America and no right, title or interest in the above -
described defendant real property shall exist in any other party.
3. The United States Marshals Service, and /or its agents and representatives shall
dispose of the Travelers Choice Motel in accordance with the law.
4. The Court shall deliver three "raised seal" certified copies of this Judgment of
Forfeiture to the United States Attorney's Office in Seattle, WA.
DATED this 5th day of August 2014.
JUDGMENT OF FORFEITURE OF REAL
PROPERTY LOCATED AT 3747 S. 146TH
STREET
PAGE -4
LL co
John C. Coughenour
UNITED STATES DISTRICT JUDGE
005
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Case 2:13 -cv- 01532 -JCC Document 89 Filed 04/29/14 Page 1 of 7
The Honorable John C. Coughenour
UNITED STATES DISTRICT COURT FOR THE
WESTERN DISTRICT OF WASHINGTON
AT SEATTLE
UNITED STATES OF AMERICA,
Plaintiff
v.
REAL PROPERTY LOCATED AT 3747 S.
146TH STREET, TUKWILA,
WASHINGTON, KING COUNTY PARCEL
NUMBER 004000 -0911,
and
BBCN Bank,
Defendant,
Claimant.
NO. C13 -1532 JCC
EXPEDITED SETTLEMENT
AGREEMENT AS TO REAL PROPERTY
LOCATED AT 3747 S. 1461 l' STREET,
TUKWILA, WASHINGTON
IT IS HEREBY STIPULATED by and between the United States of America and
Claimant BBCN Bank (formerly known as Center Bank) (hereafter, "BBCN "), to
compromise and settle its interest in the following real property:
Real property located at 3 747 S. 146th Street, Tukwila, Washington, King County
parcel number 004000 -0911, also commonly known as the Travelers Choice
Motel, together with its buildings, improvements, appurtenances, fixtures,
attachments and easements, more particularly described as:
THE EAST 88 FEET OF LOT 11, BLOCK 7, ADAMS HOME TRACTS,
ACCORDING TO THE PLAT THEREOF RECORDED IN VOLUME 11
OF PLATS, PAGE(S) 31, IN KING COUNTY, WASHINGTON. EXCEPT
SETTLEMENT AGREEMENT - 1
C(3- 1532U.S. v. Real Property located at 14420 Tukwila International Blvd., at al.
UNITED STATES ATTORNEY
700'STEWART STREET. SUITE 5220
SEATTLE, WASHINGTON 98101
(206) 553 -7970 006
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Case 2:13 -cv- 01532 -JCC Document 89 Filed 04/29/14 Page 2 of 7
THE NORTH 10 FEET THEREOF CONVEYED TO THE CITY OF
TUKWILA BY DEED RECORDED UNDER RECORDING NUMBER
9208261189;
This stipulated settlement is entered into between the parties pursuant to the
following terms:
1. The parties to this Agreement hereby stipulate that BBCN is a bona fide
purchaser for value of the right, title, or interest in the real property, and
that any violations of Title 21, United States Code, Sections 841(a)(1) and
856(a)(2), involving the defendant real property, occurred without the
knowledge and consent of BBCN.
2. The United States agrees that upon entry of a Final Judgment of Forfeiture
forfeiting the real property to the United States, the United States will
transfer the sum of $900,000.00 in United States funds to Claimant BBCN.
The source, form, and timing of this payment are further detailed below.
3. The United States and Claimant BBCN agree and stipulate that the source
of the above - referenced $900,000.00 in United States funds shall be the
City of Tukwila, which, pursuant to a separate and independent agreement
between BBCN and the City of Tukwila, has agreed to purchase the above -
referenced defendant real property for the cash price of $900,000.00 in
United States funds.
4. Claimant BBCN agrees that the payment of $900,000.00 in United States
funds, negotiated between BBCN and the City of Tukwila, shall be in full
settlement and satisfaction of all claims by BBCN to the defendant real
property, and of all claims arising from and relating to the seizure,
detention, and forfeiture of the defendant real property, including, but not
limited to the following interests:
a. A Deed of Trust recorded against the above - referenced
defendant real property with King County Recorder under
SETTLEMENT AGREEMENT - 2
C13- 1532U,S. v. Real Property located at 14420 Tukwila International Blvd., et al.
UNITED STATES ATTORNEY
700 ST£WART STREET, SurTE 5220
SEATTLE, WASHINGTON 9810107
(206)553 -7970
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Case 2:13 -cv- 01532 -JCC Document 89 Filed 04/29/14 Page 3 of 7
document number 20070511000618 (hereinafter sometimes
referred to as "Deed ") on May 2, 2007; and
b. A Commercial Security Agreement against all personal property
associated with the above- referenced real property recorded with the
King County Recorder under document number 200713163515.
5. The United States agrees that upon the entry of a Final Judgment of
Forfeiture, forfeiting the above - referenced defendant real property in its
entirety to the United States, the United States will engage in a government
to government transfer of title with the City of Tukwila. Contemporaneous
with that transfer of title, effectuated through the recording of a Quit Claim
Deed with the King County Recorder's Office, the City of Tukwila will
present to the United States Marshals Service, and/or its agents and/or
representatives, a cashier's check made payable to BBCN Bank in the sum
of $900,000.00 in United States Funds. This cashier's check will then be
delivered to Claimant BBCN, by and through its undersigned counsel
and/or any other authorized agent or representative.
6. Upon payment, Claimant BBCN agrees to release and hold harmless the
United States, and any agents, servants, and employees of the United States
(and any involved state or local law enforcement agencies and their agents,
servants, or employees), in their individual or official capacities, from any
and all claims by BBCN and their agents that currently exist or that may
arise as a result of the United States' actions against and relating to the
above - referenced defendant real property and any personal property
associated with the above- referenced defendant real property.
7. Claimant BBCN agrees not to pursue against the United States any other
rights that it may have under the Deed or Commercial Security Agreement
attached to any personal property related to the defendant real property,
including but not limited to the right to assess additional interest or
penalties, or the right to initiate a non judicial foreclosure action. The
SETTLEMENT AGREEMENT - 3
C13- 1532U.S. v. Real Property located at 14420 Tukwila International Blvd., et al.
UNITED STATES ATTORNEY
700 STEWART STREET, SUITE 5220
SEATtLE, WASHINGTON 9810L
(206)553 -7970
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Case 2:13 -cv- 01532 -JCC Document 89 Filed 04/29/14 Page 4 of 7
parties agree that nothing in this stipulation, however, precludes Claimant
BBCN from pursuing recovery of all remaining funds owed to it under the
Promissory Note from the original signatories to the Promissory Note or
any guarantors thereof, to the extent it is entitled to do so by the terms of
the Promissory Note or other loan documents, or pursuant to any applicable
provision of Washington State law.
8. Claimant BBCN understands and agrees that by entering into this expedited
settlement of its interest in the defendant real property, it waives any rights
to litigate further its interest in the real property and to petition for
remission or mitigation of the forfeiture. If this Agreement is approved by
the Court, then unless specifically directed by an order of the Court,
Claimant BBCN shall be excused and relieved from further participation in
this action.
9. The parties agree to execute further documents, to the extent necessary, to
convey clear title to the real property to the United States and to implement
further the terms of this settlement.
10. Each party agrees to bear its own costs and attorneys' fees.
SETTLEMENT AGREEMENT - 4
C13- 1532U.S. v. Real Property located at 14420 Tukwila International Blvd., et al.
UNITED STATES ATTORNEY
700 STEWART STREET, SUITE 5220
SEATTLE, WASHINGTON 9810009
(206) 553 -7970
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Case 2:13 -cv- 01532 -JCC Document 89 Filed 04/29/14 Page 5 of 7
11. Payment to the Claimant pursuant to this settlement agreement is
contingent upon forfeiture of the real property to the United States, as well
as the settlement of all other claims against the above - reference real
property, including, but not limited to, the claim of Whidbey Island Bank to
be settled in a separate, but related, settlement agreement. Further, the terms
of this settlement agreement shall be subject to approval by the United
States District Court. Violation of any terms or conditions herein shall be
construed as a violation of an order of the court.
DATED this a 9fl— day of r ; / , 2014.
Respectfully submitted,
DATED: Y%2 yi
DATED: ! T /ry
JENNY
RICHARD E. CO
JUSTIN W. ARNOLD
JILL OTAKE
Assistant United States Attorneys
700 Stewart Street, Suite 5220
Seattle, Washington 98101
206/ 553 -2242; fax 206/ 553 -6934
E -Mail: Richard.E.Cohen @usdoj.gov
GRANT E. COURTNEY, W A #16248
Attorney for Claimant BB Bank
Lee Anav Chung LLP
1000 Second Avenue, Suite 3500
Seattle, WA 98104
Telephone: 206 - 660 -2059
Facsimile: 206- 842 -1642
SETTLEMENT AGREEMENT - 5 UNITED STATES ATTORNEY
700 STEWART STREET, SUITE 5220
SEATTLE, WASHINGTON 981%
C 13-1532U.S. v. Real Property located at 14420 Tukwila International Blvd., et al.
10
(206) 553 -7970
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Case 2:13 -cv- 01532 -JCC Document 89 Filed 04/29/14 Page 6 of 7
DATED: r4" 4
SAMUEL S. CHUNG, WSBA #19737
Attorney for Claimant BBCN Bank
Lee Anav Chung LLP
1000 Second Avenue, Suite 3500
Seattle, WA 98104
Telephone: 206-654-5050
Facsimile: 206- 654 -0011
ORDER
This Settlement Agreement regarding the defendant real property located at 3747
S. 146th Street, Tukwila, Washington, King County parcel number 004000 -0911, also
commonly known as the Travelers Choice Motel, together with its buildings,
improvements, appurtenances, fixtures, attachments and easements, more particularly
described as:
THE EAST 88 FEET OF LOT 11, BLOCK 7, ADAMS HOME TRACTS,
ACCORDING TO THE PLAT THEREOF RECORDED IN VOLUME 11
OF PLATS, PAGE(S) 31, IN KING COUNTY, WASHINGTON. EXCEPT
THE NORTH 10 FEET THEREOF CONVEYED TO THE CITY OF
TUKWILA BY DEED RECORDED UNDER RECORDING NUMBER
9208261189;
is hereby approved under the terms and conditions set forth in the foregoing agreement.
DATED this day of , 2014.
JOHN C. COUGHENOUR
UNITED STATES DISTRICT JUDGE
SETTLEMENT AGREEMENT - 6
C13- 1532U.S. v. Real Property located at 14420 Tukwila International Blvd., et al.
UNITED STATES ATTORNEY
700 STEWART STREET, SUITE 5220
SEATTLE, WASHINGTON 98101011
(206) 553-7970
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Case 2:13 -cv- 01532 -JCC Document 89 Filed 04/29/14 Page 7 of 7
CERTIFICATE OF SERVICE
I hereby certify that on April 29, 2014, I electronically filed the foregoing with the
Clerk of the Court using the CM/ECF system which will send notification of such filing
to the attorney(s) of record for the Claimant(s).
s/ Michael McLaren
MICHAEL MCLAREN
FSA Paralegal HE
United States Attorney's Office
700 Stewart Street, Suite 5220
Seattle, Washington 98101 -1271
Phone: (206) 553 -2242
SETTLEMENT AGREEMENT - 7
C13- 15321J,S, v. Real Property located at 14420 Tukwila International Blvd., et al.
UNITED STATES ATTORNEY
700 STEWART STREET, SUITE 5220
SEATTLE, WASHINGTON 98101
(206) 553 -7970 012