N.Y. Vehicle & Traffic Law § 511-c: Seizure and forfeiture of vehicles used in the unlicensed operation of a motor vehicle under certain circumstances

§ 511-c. Seizure and forfeiture of vehicles used in the unlicensed

operation of a motor vehicle under certain circumstances. 1. For

purposes of this section:

(a) The term "owner" shall mean an owner as defined in section one

hundred twenty-eight and in subdivision three of section three hundred

eighty-eight of this chapter.

(b) The term "security interest" shall mean a security interest as

defined in subdivision (k) of section two thousand one hundred one of

this chapter.

(c) The term "termination of the criminal proceeding" shall mean the

earliest of (i) thirty-one days following the imposition of sentence; or

(ii) the date of acquittal of a person arrested for an offense; or (iii)

where leave to file new charges or to resubmit the case to a new grand

jury is required and has not been granted, thirty-one days following the

dismissal of the last accusatory instrument filed in the case, or, if

applicable, upon expiration of the time granted by the court or

permitted by statute for filing new charges or resubmitting the case to

a new grand jury; or (iv) where leave to file new charges or to resubmit

the case to a new grand jury is not required, thirty-one days following

the dismissal of the last accusatory instrument filed in the case, or,

if applicable, upon expiration of the time granted by the court or

permitted by statute for filing new charges or resubmitting the case to

a new grand jury; or (v) six months from the issuance of an "adjournment

in contemplation of dismissal" order pursuant to section 170.55 of the

criminal procedure law, where the case is not restored to the court's

calendar within the applicable six-month period; or (vi) the date when,

prior to the filing of an accusatory instrument against a person

arrested for an offense, the prosecuting authority elects not to

prosecute such person.

2. Any motor vehicle which has been or is being used in violation of

paragraph (a) of subdivision three of section five hundred eleven of

this article may be seized by any peace officer, acting pursuant to his

or her special duties, or police officer, and forfeited as hereinafter

provided in this section.

3. A vehicle may be seized upon service of a notice of violation upon

the owner or operator of a vehicle. The seized motor vehicle shall be

delivered by the officer having made the seizure to the custody of the

district attorney of the county wherein the seizure was made, except

that in the cities of New York, Yonkers, Rochester and Buffalo the

seized motor vehicle shall be delivered to the custody of the police

department of such cities and such motor vehicle seized by a member or

members of the state police shall be delivered to the custody of the

superintendent of state police, together with a report of all the facts

and circumstances of the seizure. Within one business day after the

seizure, notice of such violation and a copy of the notice of violation

shall be mailed to the owner of such vehicle at the address for such

owner set forth in the records maintained by the department of motor

vehicles or, for vehicles not registered in New York state, such

equivalent record in such state of registration.

4. (a) The attorney general in seizures by members of the state

police, or the district attorney of the county wherein the seizure is

made, if elsewhere than in the cities of New York, Yonkers, Rochester or

Buffalo, or where the seizure is made in such cities, the corporation

counsel of the city shall inquire into the facts of the seizure so

reported to him or her. If it appears that there is a basis for the

commencement and prosecution of a forfeiture proceeding pursuant to this

section, any such forfeiture proceeding shall be commenced in supreme

court not later than twenty days after the date of receipt of a written

demand by a person claiming ownership of the motor vehicle accompanied

by the documentation required to be presented upon release of the

vehicle pursuant to subparagraphs (i), (ii), and (iv) of paragraph (a)

of subdivision five of this section.

(b) Where forfeiture proceedings are commenced and prosecuted pursuant

to this section, the motor vehicle which is the subject of such

proceedings shall remain in the custody of such district attorney,

police department or superintendent of state police, as applicable,

pending the final determination of such proceedings.

(c) To the extent applicable, the procedures of article thirteen-A of

the civil practice law and rules shall govern proceedings and actions

under this section.

5. A motor vehicle seized pursuant to this section shall be released

when:

(a) (i) Such attorney general, district attorney or corporation

counsel has made a determination not to institute forfeiture proceedings

pursuant to this section or the time period within which a forfeiture

proceeding could have been commenced pursuant to this section has

elapsed and no such forfeiture proceeding was commenced or the criminal

proceeding has been terminated in favor of the accused, as defined in

subdivision three of section 160.50 of the criminal procedure law; and

(ii) The person seeking to claim the motor vehicle has furnished

satisfactory evidence of registration and financial security and, if the

person was the operator of the vehicle at the time of the violation of

paragraph (a) of subdivision three of section five hundred eleven of

this article, satisfactory evidence of payment of any fines or penalties

imposed in connection therewith; and

(iii) Payment has been made for the reasonable costs of removal and

storage of the motor vehicle. The owner of the motor vehicle shall be

responsible for such payment provided, however, that if he or she was

not the operator at the time of the offense, such person shall have a

cause of action against such operator to recover such costs. Payment

prior to release of the motor vehicle shall not be required in cases

where the seized motor vehicle was stolen or rented or leased pursuant

to a written agreement for a period of thirty days or less, however the

operator of such a motor vehicle shall be liable for the costs of

removal and storage of the motor vehicle to any entity rendering such

service; and

(iv) If the motor vehicle is held as evidence, the person seeking to

claim the motor vehicle has presented a release from the prosecuting

authority providing that the motor vehicle is not needed as evidence.

(b) (i) Pending completion of forfeiture proceedings which have been

commenced, the person seeking to claim the motor vehicle has posted a

bond in a form satisfactory to such attorney general, district attorney

or corporation counsel in an amount that shall not exceed an amount

sufficient to cover the maximum fines or civil penalties which may be

imposed for the violation underlying the seizure and all reasonable

costs for removal and storage of such vehicle; and

(ii) The persons seeking to claim the motor vehicle has furnished

satisfactory evidence of registration and financial security.

6. Where a demand for the return of a motor vehicle is not made within

ninety days after the termination of the criminal proceeding founded

upon the charge of aggravated unlicensed operation of a motor vehicle in

the first degree, such motor vehicle shall be deemed to be abandoned.

Such vehicle shall be disposed of by the county, cities of New York,

Yonkers, Rochester or Buffalo or the state, as applicable, in accordance

with section twelve hundred twenty-four of this chapter or as otherwise

provided by law.

7. Notice of the institution of the forfeiture proceeding shall be

served:

(a) By personal service pursuant to the civil practice law and rules

upon all owners of the seized motor vehicle listed in the records

maintained by the department, or for vehicles not registered in New York

state, in the records maintained by the state of registration; and

(b) By first class mail upon all individuals who have notified such

attorney general, district attorney or corporation counsel that they are

an owner of the vehicle and upon all persons holding a security interest

in such motor vehicle which security interest has been filed with the

department pursuant to the provisions of title ten of this chapter, at

the address set forth in the records of such department, or for motor

vehicles not registered in New York state, all persons holding a

security interest in such motor vehicle which security interest has been

filed with such state of registration, at the address provided by such

state of registration.

8. Any owner who receives notice of the institution of a forfeiture

action who claims an interest in the motor vehicle subject to forfeiture

shall assert a claim for the recovery of the motor vehicle or

satisfaction of the owner's interest in such motor vehicle by

intervening in the forfeiture action in accordance with subdivision (a)

of section one thousand twelve of the civil practice law and rules. Any

person with a security interest in such vehicle who receives notice of

the institution of the forfeiture action shall assert a claim for the

satisfaction of such person's security interest in such vehicle by

intervening in the forfeiture action in accordance with subdivision (a)

of section one thousand twelve of the civil practice law and rules. If

the action relates to a vehicle in which a person holding a security

interest has intervened pursuant to this subdivision, the burden shall

be upon the designated official to prove by clear and convincing

evidence that such intervenor knew that such vehicle was or would be

used for the commission of a violation of subparagraph (ii) of paragraph

(a) of subdivision three of section five hundred eleven of the vehicle

and traffic law and either (a) knowingly and unlawfully benefitted from

such conduct or (b) voluntarily agreed to the use of the vehicle for the

commission of such violation by consent freely given. For purposes of

this subdivision, such intervenor knowingly and unlawfully benefited

from the commission of such violation when he or she derived in exchange

for permitting the use of such vehicle by a person or persons committing

such specified violation a substantial benefit that would otherwise not

have accrued as a result of the lawful use of such vehicle. "Benefit"

means benefit as defined in subdivision seventeen of section 10.00 of

the penal law.

9. No motor vehicle shall be forfeited under this section to the

extent of the interest of a person who claims an interest in the motor

vehicle, where such person pleads and proves that:

(a) The use of such motor vehicle for the conduct that was the basis

for a seizure occurred without the knowledge of such person, or if such

person had knowledge of such use, without the consent of such person,

and that such person did not knowingly obtain such interest in the motor

vehicle in order to avoid the forfeiture of such vehicle; or

(b) The conduct that was the basis for such seizure was committed by

any person other than such person claiming an interest in the motor

vehicle, while such motor vehicle was unlawfully in the possession of a

person who acquired possession thereof in violation of the criminal laws

of the United States or any state.

10. The court in which a forfeiture action is pending may dismiss said

action in the interests of justice upon its own motion or upon an

application as provided for herein.

(a) At any time during the pendency of a forfeiture action, the

designated official who instituted the action, or a defendant may apply

for an order dismissing the complaint and terminating the forfeiture

action in the interest of justice.

(b) Such application for the relief provided in paragraph (a) of this

subdivision must be made in writing and upon notice to all parties. The

court may, in its discretion, direct that notice be given to any other

person having an interest in the property.

(c) An application for the relief provided for in paragraph (a) of

this subdivision must be brought exclusively in the superior court in

which the forfeiture action is pending.

(d) The court may grant the relief provided in paragraph (a) of this

subdivision if it finds that such relief is warranted by the existence

of some compelling factor, consideration or circumstance demonstrating

that forfeiture of the property or any part thereof, would not serve the

ends of justice. Among the factors, considerations and circumstances the

court may consider, among others, are:

(i) the seriousness and circumstances of the crime to which the

property is connected relative to the impact of forfeiture of property

upon the person who committed the crime; or

(ii) the adverse impact of a forfeiture of property upon innocent

persons.

(e) The court must issue a written decision stating the basis for an

order issued pursuant to this subdivision.

11. The district attorney, police department or superintendent of

state police having custody of the seized motor vehicle, after such

judicial determination of forfeiture, shall, by a public notice of at

least twenty days, sell such forfeited motor vehicle at public sale. The

net proceeds of any such sale, after deduction of the lawful expenses

incurred, shall be paid into the general fund of the county wherein the

seizure was made, provided, however, that the net proceeds of the sale

of a motor vehicle seized in the cities of New York, Yonkers, Rochester

and Buffalo shall be paid into the respective general funds of such

cities, and provided further that the net proceeds of the sale of a

motor vehicle seized by the state police shall be paid into the state

police seized assets account.

12. In any action commenced pursuant to this section, where the court

awards a sum of money to one or more persons in satisfaction of such

person's or persons' interest or interests in the forfeited motor

vehicle, the total amount awarded to satisfy such interest or interests

shall not exceed the amount of the net proceeds of the sale of the

forfeited motor vehicle, after deduction of the lawful expenses incurred

by the county, cities of New York, Yonkers, Rochester or Buffalo or the

state, as applicable, and storage of the motor vehicle between the time

of seizure and the date of sale.

13. At any time within two years after the seizure, any person

claiming an interest in a motor vehicle which has been forfeited

pursuant to this section who was not sent notice of the commencement of

the forfeiture action pursuant to subdivision seven of this section, or

who did not otherwise receive actual notice of the forfeiture action,

may assert in an action commenced before the justice of the supreme

court before whom the forfeiture action was held such claim as could

have been asserted in the forfeiture action pursuant to this section.

The court may grant the relief sought upon such terms and conditions as

it deems reasonable and just if the person claiming an interest in the

motor vehicle establishes that he or she was not sent notice of the

commencement of the forfeiture action and was without actual knowledge

of the forfeiture action, and establishes either of the affirmative

defenses set forth in subdivision nine of this section.

14. No action under this section for wrongful seizure shall be

instituted unless such action is commenced within two years after the

time when the motor vehicle was seized.