Full opinion text
MEMORANDUM OPINION AND ORDER STEGER, District Judge. The following motions are presently awaiting resolution in this consolidated action: (1) Claimant Dr. Leffie M. Carlton, Jr.'s Motion for Summary Judgment and for Declaration that Claimant is not Responsible for Bills. (2) Plaintiff United States of America’s Motion to Alter or Amend the Judgment. (3) Plaintiff's Motion to Set Aside Judgment and for Judgment Non Obstante Verdicto, or in the Alternative, Motion for New Trial. (4) Claimants’ Motion to Reconsider Order Staying Enforcement of Judgment. (5) A Joint Motion to Release Household Furnishings. The following opinion is composed of four parts. The first provides a review of the procedural events which preceded these motions. (P. 2) The second explains the Court's decision to grant Dr. Carlton’s motion for summary judgment but deny the plaintiff’s motions to alter, amend or set aside the judgment and the plaintiff's alternative motion for new trial. (P. 16) The third section provides the reasoning behind the Court’s decision to tax a portion of the maintenance expenses incurred by the government against the prevailing claimants. (P. 60) Finally, the fourth part lifts the stay and reinforces the judgment entered on December 9, 1985. (P. 83) I. PROCEDURAL BACKGROUND As an experiment with a new apparatus for the seizure of proceeds from drug transactions, the attempted forfeiture of the D.K.G. Ranch has been a procedural nightmare. Dozens of motions and proceedings in two federal district courts have led to hesitancy, delay, and disorder. The lack of statutory or judicial guidance caused by the paucity of similar cases has led to many of the difficulties encountered. One thing has become clear, however: But for a pre-plea agreement finalized in September of 1983 between the United States and Bruce Emery Griffin, the D.K.G. Ranch could have been sold long ago. That agreement has become the focal point in this case. By its terms, the government agreed not to impose any further civil sanctions on Bruce Emery Griffin for conduct known to the United States Attorney and committed in the Southern District of Florida prior to the date of the agreement. According to Griffin’s interpretation, forfeiture of property he owns would be a civil sanction against him, and is proscribed by the plea agreement as long as the property was purchased with proceeds from illegal conduct occurring in the Southern District of Florida. He has admitted purchasing the property with such illegal proceeds, and has asserted his interpretation of the pre-plea agreement as his primary defense to this forfeiture proceeding. This proceeding differs from all others. Unlike so many of the reported forfeiture cases, mostly involving boats or automobiles, this case has involved the seizure of an operational, multi-million dollar Appaloosa horse ranch and several million dollars worth of gold and jewelry found on the premises. More than the difference in the value of the seized property, what separates this case from so many others is the fact that the government has continued to operate the ranch, spending to date over two million dollars in the process. Yet under revamped and broadened procedures for the forfeiture of traceable proceeds from drug trafficking, the operation of seized businesses is becoming less unique. There may be other cases, now or in the future, where the government will spend millions in upkeep while forfeiture proceedings progress through the courts. It is unlikely, however, that there will be many of these large forfeiture cases in which the claimants will stipulate that the government had probable cause to seize their property, admit that drug money was used to purchase the property, and assert only one defense: The government promised not to do this. No such promise was mentioned when the government approached this Court on the evening of March 13, 1984, seeking authority to seize the D.K.G. Ranch. This Court was not told about the existence of the pre-plea agreement made between the government and Bruce Emery Griffin until six weeks after the seizure. By then, the United States Marshal’s Service had firm control over all the assets, and a substitute custodian had been appointed who was operating the ranch. The government was committed, and it was too late to turn back without great difficulty. If this Court could have foreseen the delays that ultimately attended these proceedings, the difficulty might not have seemed so great. By the same token, if this Court had known about the plea agreement on March 13, 1984, it is unlikely that it would have given the government authority to seize the ranch without a thorough inquiry into the provisions of the bargain. Such an inquiry may have led to a refusal to give the authority to seize, or it may have led to a limited seizure upon strict conditions. This observation is conjectural, and is made with the benefit of hindsight. The fact remains, however, that all relevant information should have been presented to the Court, and it was not. The information that was presented to the Court clearly warranted authorization of the seizure. The government stressed the fact that the property had been purchased with the proceeds from illegal drug trafficking by a major narcotics dealer in Florida. They assured the Court that they had conclusive evidence to establish all necessary requirements for a forfeiture, and described some of that evidence. Due process did not require that pre-seizure notice or opportunity to be heard be given to the owners of the seized property. See United States v. One 1977 Mercedes Benz, 708 F.2d 444, 450 n. 5 (9th Cir.1983) (and cases cited therein). Under these circumstances, it seemed appropriate to go forward with the forfeiture proceedings. As a result, the D.K.G. Ranch was seized on March 14, 1984. The various claims to the property were filed on March 26, 1984. The next month consisted primarily of a dispute concerning the extent of the powers to be granted to the substitute custodian appointed to operate the ranch. This dispute was resolved by an agreement memorialized in a written order dated May 10, 1984. This order amended an earlier order spelling out the powers of the custodian. The amended order gave the claimants the right to monitor the ranch operations on a weekly basis at an agreed time and through an agreed agent. This understanding was reached after a hearing conducted by this Court on April 23, 1984. One week earlier, on April 16, 1984, Bruce Emery Griffin’s attorneys in Florida had brought the seizure of the D.K.G. Ranch to the attention of the Hon. William M. Hoeveler, the federal district court judge who had accepted Griffin’s plea bargain. Griffin’s attorneys made clear their belief that the seizure action in Texas was in violation of that September, 1983 preplea agreement. Nothing substantive came of this hearing. It is mentioned because it was only after this hearing that this Court was apprised of the existence of the pre-plea agreement. Knowledge of the pre-plea agreement came from one of the attorneys for Bruce Emery Griffin, who informed the Court in chambers just before the April 23, 1984 hearing began.- The government was quick to point out that the seized land was deeded to NABUC, Ltd. a Bahamian corporation. In addition, most of the other seized assets were apparently owned by D.K.G. Appaloosas, Inc., a Texas corporation wholly owned by NABUC, Ltd. Neither of these corporations were parties to the preplea agreement, and as a result the government contended that the agreement did not bar forfeiture of the seized property. In addition, the government argued that the plea agreement should be set aside or interpreted so as to allow this forfeiture. The next several months were composed of attempts by both sides to engage in discovery and -by delays caused by the claimants. After abiding by a protective order requiring compliance with government regulations, the claimants were successful in obtaining the information they requested from the government. When they were summoned for depositions, however, the claimants asserted fifth amendment privileges and refused to testify. Requests for admission and document requests from the government were ignored by the claimants. Through it all, the claimants were constantly seeking additional time in which to file their answers. From April 9, 1984 until August 10, 1984, this Court honored seven requests for additional time. The final deadline for filing an answer was August 20, 1984, more than five months after the seizure. On August 20, 1984, the claimants and the defendant property finally filed answers, together with a motion for more definite statement and, more importantly, a motion for change of venue to Florida. This latter motion represented the first time that the pre-plea agreement issue had been formally raised in written pleadings filed in this Court. Three days earlier, on August 17, 1984, Bruce Emery Griffin’s attorneys in Florida had filed an “In camera Motion for Specific Performance of Pre-Plea Agreement” which sought a declaration from Judge Hoeveler that the bargain precluded the forfeiture of the D.K.G. Ranch. At this point it became apparent that the pre-plea agreement was the key to resolving this matter. The agreement presented two very different questions. First, the agreement required interpretation, since it was unclear whether it precluded or excluded the attempted forfeiture in Texas. Second, it was unclear whether two corporations who were not parties to the agreement actually owned the property. In a response filed in Texas in September of 1984, the government opposed any change of venue on the sole ground that since the property sought to be forfeited was located in Texas, Texas was the proper forum for deciding both of the issues concerning the pre-plea agreement. Conversely, the government argued that the court in Florida lacked jurisdiction over the property, and therefore it could not interpret the plea agreement it had previously approved. While there was little doubt about this Court’s jurisdiction over property located in Texas, going beyond this to interfere in criminal proceedings in another district raised serious questions. This Court knew nothing about Bruce Emery Griffin or the extent of his criminal involvement. In all likelihood, however, this information would have been contained in a pre-sentence investigation report prepared for Judge Hoeveler. This Court knew nothing about the negotiations that led up to the pre-plea agreement, nor was it acquainted with the attorneys involved or standard plea negotiation practices in the United States Attorney’s office in Florida. It knew nothing about other criminal proceedings against Bruce Emery Griffin in Florida. It was unaware of any Florida property owned by Bruce Emery Griffin that was forfeited as a part of the agreement. This Court could not appreciate the value of information given by Griffin as a part of his bargain, nor did it know the extent of the tax liability that was omitted from the proscriptions of the agreement. In short, this Court knew nothing about the conduct leading up to the forfeiture proceedings in Texas, and Judge Hoeveler did. It would have required numerous hours for this Court to gain the same familiarity that another judge already had. This would have constituted an unnecessary expenditure of judicial resources. In addition to this practical consideration, there is case authority supporting the proposition that good faith disputes concerning the interpretation of a plea agreement should be made by the judge that accepted the plea. See, e.g., United States v. Strawser, 739 F.2d 1226, 1230 (7th Cir.), cert. denied, — U.S. -, 105 S.Ct. 518, 83 L.Ed.2d 407 (1984). When a plea agreement is breached, that same judge should be the one to order specific performance or dismiss the indictment, whichever is the appropriate remedy. This is true even if the agreement is breached in another district. See, e.g., United States v. Carter, 454 F.2d 426, 428 (4th Cir.1972), cert. denied, 417 U.S. 933, 94 S.Ct. 2646, 41 L.Ed.2d 237 (1974). It was up to Judge Hoeveler to decide whether this pre-plea agreement was to be set aside, interpreted to allow forfeiture, or interpreted to bar forfeiture. Both logic and law dictated that the judge who accepted the plea bargain also should interpret it, while this Court worried about matters like the expenditure of funds for upkeep, discovery disputes, interlocutory sales, determination of ownership, taxation of costs, and all the other issues that were related to the property in Texas. Beginning in September of 1984, this Court hoped for a quick decision from Florida interpreting the plea agreement since so many other issues seemed to hinge on that one. In the meantime, work proceeded on the rest of the docket. In November, the Court authorized the release of mares owned by Dr. Leffie Carlton that had been on the D.K.G. Ranch for breeding purposes. On December 13, 1984, the government filed a motion for partial summary judgment on issues related to the plea agreement. This was the first time that the government had affirmatively sought any action from this Court on that issue. Concerned by the lack of any real progress, the Court held a pre-trial conference on December 17, 1984. The parties informed the Court that a hearing was in progress in Florida on the motion to specifically enforce the plea agreement, and that Judge Hoeveler wanted briefs by January 7, 1985. The intention of this Court was to resolve any matters pending in Texas that precluded a trial and then proceed to trial without waiting on a decision concerning the plea agreement. Pursuant to that goal, this matter was set for trial on January 21, 1985. It was subsequently moved to February 4, 1985 to accommodate the presence of a jury panel. On January 16, 1985, the government filed a motion for continuance, arguing that the pre-plea agreement had to be interpreted before a trial could proceed. The claimants subsequently concurred, and asked the Court to delay the matter until after the court in Florida ruled on the matters pending there. The Court reluctantly agreed, and continued the matter until a date twenty-one days after the parties received a dispositive ruling from the court in Florida. The next two months saw the filing of additional pleadings and the renewal of a request by the government to conduct a partial interlocutory sale of some of the horses. No ruling came from Florida. Concerned by the continued delay, the Court held a case status conference on April 10, 1985. Counsel for both sides informed the Court of the status of the motion for specific enforcement of the preplea agreement pending in Florida. The need to reduce the size of the herd of horses on the ranch was also discussed, and the government stressed the necessity of having a sale. The parties were urged to reach some agreement on the matter. No agreement was possible, and the Court held a full day hearing on April 24, 1985 on the issue of ordering a partial interlocutory sale. After listening to testimony and argument, the Court ordered such a sale, to be scheduled as soon as possible. The sale was ultimately performed in August of 1985. The remainder of the summer of 1985 was spent waiting on a ruling from Florida. In the meantime, the parties began filing additional pleadings and motions. Spurred by rumors of a possible settlement, on July 17, 1985 the Court contacted the Assistant United States Attorney handling, the case in Beaumont, Texas. Counsel informed the Court that no settlement had been reached, and updated the Court on the progress in Florida, noting that Judge Hoeveler apparently was having difficulty scheduling time for hearings on the matter due to his heavy criminal caseload. On July 22, 1985, the Court contacted Judge Hoeveler to obtain some estimate of the time he would need to make a ruling. Judge Hoeveler agreed that he was the one who should make the determination concerning the meaning of the plea agreement, and that such a determination was necessary before a trial in Texas. He expressed optimism that a ruling could be forthcoming in the near future. On August 16, 1985, Judge Hoeveler convened a hearing to announce a provisional ruling. He indicated that he would specifically enforce the plea agreement. Any property owned by Bruce Emery Griffin and known to the United States Attorney at the time of the pre-plea agreement was protected from forfeiture. He expressed uncertainty about the ownership of the seized property, and indicated that these questions required resolution in Texas. He also expressed some uncertainty about the status of the gold and jewelry found on the premises of the D.K.G. Ranch when it was seized. Perplexed by the provisional status of the ruling, this Court waited in the hopes of receiving a final written order. On August 19, 1985, the Assistant United States Attorney in Beaumont had indicated that a written order was expected from Florida in two to three weeks. On September 9, 1985, the Court contacted Judge Hoeveler to see if a written order had been entered. He indicated that an order would be forthcoming shortly. Regardless of the fact that no written order had yet been entered in Florida, it was clear that a trial in Texas was necessary to determine whether the corporations or Bruce Emery Griffin owned the seized property. A finding that the corporations owned the property would allow the government to sidestep the pre-plea agreement in spite of Judge Hoeveler’s decision to enforce it. In an effort to clear the stage for this trial, the Court proceeded to consider all motions then pending in Texas. On September 23, 1985, the Court issued an order ruling on those- pending motions, and setting the matter for trial to decide the ownership issues left unresolved. The Court expressed its understanding of Judge Hoeveler’s provisional ruling in the hope that he would clarify any misunderstanding before the trial began. The Court referred to the original order of continuance providing for a trial setting twenty-one days after a ruling from Florida, then set the case for trial on November 4, 1985. In the weeks that preceded the trial, the Court was required to hold two in chambers hearings to rule on motions and resolve obstacles standing in the way of the trial in Texas. The first hearing was on October 11, 1985, and the second was on October 28, 1985. In all, over a dozen motions were filed and eight orders were entered, many concerning continuing discovery disputes. Through it all, the Court hoped for a final written order from Florida. The Court tried to reach Judge Hoeveler again on October 28, 1985, but was informed that he was at a conference until November 4 or 5, 1985. On November 4, 1985, the trial began in Sherman, Texas. The jury was charged at 11:00 a.m. on November 7, 1985, and retired to consider the question of ownership of the seized property. Earlier that morning, the Court had received a call from Judge Hoeveler in Florida inquiring about the contents of the jury charge and suggesting that his final written order would be issued that day. The jury returned its verdict just after 4:00 p.m. on the same day, finding that Bruce Emery Griffin and Donna Krauss Griffin, his wife, owned all of the seized property. Based on Judge Hoeveler’s provisional ruling in August, this verdict meant that Bruce Emery Griffin would be entitled to reclaim the seized property. No final written order had been issued in Florida, however. Until this was done, there was a possibility that Judge Hoeveler would alter his interpretation of the preplea agreement. For that reason, this Court hesitated in issuing a final judgment based on the jury’s verdict. The Court contacted personnel in Judge Hoeveler’s office twice after the trial, the second time on December 2, 1985. At that time it was indicated that a written order would be issued by the end of the week. On December 5, 1985, the Court received word that such an order had been signed. The pre-plea agreement would be upheld. Any property that was owned by Bruce Emery Griffin and known to the United States Attorney at the time of the plea bargain was protected from forfeiture. The order made clear that the United States Attorney knew about the ranch at the time of the agreement, but parenthetically described the ranch as “the real estate.” The order noted the existence of remaining questions concerning whether the United States Attorney knew about the gold and jewelry found on the ranch premises at the time of the seizure. Based on the written order from Florida, dated on December 6,1985, this Court went forward with the entry of judgment. On December 9, 1985, the Court issued an order resolving some pending matters, and then entered judgment in all but one of the six separate actions that together comprised the D.K.G. Ranch forfeiture. The sixth action was against the gold, jewelry and cars seized on the premises. Judgment was not entered in that action due to the unresolved questions concerning government knowledge at the time of the pre-plea agreement. Since entry of judgment, the United States Marshal for the Eastern District of Texas has received notice of the filing of a tax lien against the D.K.G. Ranch. The Internal Revenue Service’s claims for unpaid taxes were specifically omitted from the pre-plea agreement made between Griffin and the government. Although the exact amount of the lien is unknown to this Court, it is reportedly in the neighborhood of six million dollars. In spite of all the delays, and except for the separate action concerning the cars, gold and jewelry, this Court is now preparing to take its final actions in these proceedings. To that end, the following motions require resolution. II. PENDING MOTIONS A. Dr. Leffie Carlton’s Motion for Summary Judgment After careful consideration, the Court is of the opinion that the Motion for Summary Judgment of Claimant, Dr. Leffie M. Carlton, Jr., To Release Foals and for Declaration that Claimant is not Responsible for Bills should be GRANTED. In November of 1982, Dr. Carlton made an agreement with Bruce Emery Griffin whereby Dr. Carlton brought thirteen mares to the D.K.G. Ranch to be bred with Roman’s Straw Man, the star Appaloosa stud at the ranch. These mares were still on the premises when the ranch was seized in March of 1984. Bruce Emery Griffin had no ownership interest in these horses, and the government ultimately agreed that there was no basis upon which those mares could be forfeited. They were returned to Dr. Carlton pursuant to a court order dated November 21, 1984. A dispute remains concerning fees and the expenses the government incurred caring for Dr. Carlton’s mares before they were released, and the expenses the government continued to incur caring for the foals born to those mares. Dr. Carlton’s motion for a separate trial to resolve this dispute was granted by an order dated October 30, 1985, leaving it for resolution at this time. Both the government and Dr. Carlton concur that Dr. Carlton’s agreement with Bruce Griffin called for the two of them to split the foals born to Carlton’s mares. Six such foals remain on the D.K.G. Ranch, and ten of the thirteen mares were in foal at the time they were returned to Dr. Carlton. Apparently, however, only five good foals were born to those ten mares. The dispute concerning expenses can be broken down into two parts. First, there is a dispute concerning Dr. Carlton’s responsibility for the stud fees for the mares. He maintains that his only payment was to be half the foals, and therefore he is not liable for any stud fees. The government, on the other hand, argues that Dr. Carlton agreed to pay one-half of the usual stud fees. Second, there is a disagreement over Dr. Carlton’s liability for maintenance and veterinarian costs incurred in the care and feeding of his mares and the six foals. Dr. Carlton maintains that Griffin agreed to cover these costs in return for one half of the foals, while the government argues that Griffin and Carlton agreed to split these costs in half. As to the first part, the stud fees, Dr. Carlton has submitted in his affidavit a list of the items agreed to by Bruce Griffin in this transaction. He has also submitted the affidavits of two witnesses to the agreement and, after the government’s response was filed, the affidavit of Bruce Emery Griffin, the other party to the agreement, to substantiate his claims. According to these affidavits, Griffin agreed to be responsible for all of the expenses related to Dr. Carlton’s mares. They would be bred to Roman’s Straw Man with no stud fee. In return, Dr. Carlton agreed to pay for the insurance on his mares and agreed to allow the D.K.G. Ranch to keep one half of the foals born to his mares. All the foals would be the responsibility of the D.K.G. Ranch until time for distribution or race training. The government believes that Dr. Carlton agreed to pay half the usual stud fee. This belief is based primarily on the affidavit of Paul Aduddell, the ranch custodian. The contents of his affidavit, however, are based entirely on three hearsay sources: Melody Beezley, a ranch employee under Griffin; a review of D.K.G. Ranch records; and a conversation with Lewis Wartchow, the representative for Dr. Carlton. As demonstrated by her affidavit, Melody Beezley’s belief that there was an agreement to split all costs, including stud fees, is based entirely on things she heard Bob Geer, Griffin’s stallion manager, say, and by some notation in some records that she saw. Presumably, the records she saw are the same ones Aduddel saw that are attached as exhibits to the government’s response. None of the evidence submitted by the government is sufficient to raise a factual question on the issue of stud fees. The Court cannot credit hearsay statements, especially when none of those statements were made by parties to the agreement. The documents submitted as attachments are also hearsay. Even if this fact is overlooked, none of those documents even mentions stud fees. In this Court’s opinion, the affidavits of the two parties to the agreement and two witnesses to the agreement conclusively establish that Dr. Carlton was not to pay any stud fees. By the same token, this Court cannot credit the hearsay statements made by Paul Aduddell and Melody Beezley on the issue of responsibility for maintenance and veterinarian costs. The documents submitted, also hearsay, do not establish an agreement to pay half of the costs even if the defect of hearsay is ignored. The documents are denominated as “charge slips,” but there is no indication as to their purpose. Some say D.K.G. and Dr. Carlton will “go 50/50” on bills, but there is no indication as to the author of those statements or his knowledge of the agreement. In all, only approximately five “charge slips” contain this notation. By the same token, three say “do not send bill,” and the remainder say nothing at all about costs. In the face of four affidavits, two by the parties to the agreement, the proof offered by the government does not raise any factual questions regarding the agreement. The D.K.G. Ranch was to receive one half of the foals born to Dr. Carlton’s mares. This was the only payment D.K.G. was to receive. Dr. Carlton is not responsible for the bills sent by the United States government for the care, boarding or breeding of any horses owned by him which have been boarded or are being boarded on the D.K.G. Ranch. Dr. Carlton is also not liable for any stud fees. Any such bills are hereby cancelled. The D.K.G. Ranch is entitled to keep one half of the foals born to Dr. Carlton’s thirteen mares. Apparently there were eleven foals born to those mares. This Court is in no position to determine which foals Dr. Carlton should keep, nor has this Court been asked to make such a determination. This matter will be best resolved by an agreement between Dr. Carlton and the owner of the D.K.G. Ranch. B. Plaintiffs Motion to Alter or Amend the Judgment On December 19, 1985, the plaintiff filed a Motion to Alter or Amend the Judgment. The motion makes three separate arguments. The first two arguments are directed at the judgment entered by this Court on December 9, 1985. The last argument concerns the gold and jewelry that is the subject matter of a separate cause of action in which no judgment has been entered. Each argument will be considered separately. 1. Scope of Government Knowledge As noted earlier, based on Judge Hoeveler’s interpretation of the pre-plea agreement, the government may not forfeit any property owned by Bruce Emery Griffin and known to the government at the time of the bargain. See Order Clarifying Plea Agreement, United States v. Bruce Emery Griffin, No. 82-72-CR Hoeveler, at 3-4 (S.D.Fl., Dec. 6, 1985). In the same order, Judge Hoeveler concludes that the government knew about the ranch, thus protecting it from forfeiture. In describing the ranch, however, the judge added the words “the real estate” in parentheses. Because of this, the government argues that a new trial should be granted to determine whether they knew about the horses, equipment and household furnishings on the D.K.G. Ranch at the time of its seizure, and the bank accounts in the D.K.G. name. They contend that Judge Hoeveler’s parenthetical description means they knew about the real estate but nothing else. It is likely, however, that Judge Hoeveler added the parenthetical to avoid prejudicing subsequent determinations of government knowledge about the seized cars, gold and jewelry. In his order Judge Hoeveler discusses the need for subsequent determinations of the government’s knowledge about some of the properties found on the ranch, describing those properties as “the gold bars, etc.” Id. at 3. There is no indication that these other properties would include horses, equipment or furnishings. Logic dictates this interpretation of Judge Hoeveler’s order. It has been well documented that the government knew Bruce Emery Griffin was linked to a horse ranch in Texas. On the day his plea bargain was accepted, his attorneys mentioned to the Court that Griffin was involved in operating such a ranch. Transcript of Hearing Before the Hon. William M. Hoeveler, Sept. 20, 1983, at 18. When he was sentenced, Griffin’s attorneys argued for leniency because Griffin had given up drug trafficking in favor of his horse breeding and showing business. Transcript of Sentencing, November 8, 1983, at 39. The government knew Griffin was operating a horse ranch. It strains credibility to maintain that the government thought a horse ranch consisted only of real estate. If they knew Griffin was operating a horse ranch, by implication they knew he had horses, barns and equipment for those horses, housing for himself and at least some of the people working on the ranch, and bank accounts for ranch expenses and profits. It is possible the government did not realize the full extent or value of the horses, equipment or improvements on the ranch. They may have believed, for example, that one of the houses on the ranch was worth one hundred thousand dollars when it really was worth five hundred thousand dollars. It would make little sense, however, to conclude that the government only knew about one hundred thousand dollars worth of house, and allow them to forfeit the difference. It is impossible to draw such lines. The plaintiff’s interpretation of the parenthetical phrase in Judge Hoeveler’s order is also inconsistent with actual facts. The D.K.G. Ranch is composed of several separate tracts of land. It is apparent that the government was not aware of all the tracts included until after the seizure. In other words, it is more likely that the government knew about the horses than all of the real estate at the time of the plea agreement. This does not mean, however, that the government may forfeit land they did not know about, since this would require more impossible line drawing. The government knew the ranch consisted of some real estate; it should not benefit from imperfect or incomplete knowledge concerning the exact amount of real estate involved. While it is logical to assume a horse ranch would have horses, it is not logical to assume that a horse ranch would have millions of dollars worth of gold and jewelry hidden in the trunk of a car parked on the premises. While the government may have known that Bruce Emery Griffin had purchased some gold, it will require proof at a trial to determine whether they knew at the time of the plea bargain about the cars, gold and jewelry actually found on the ranch. No other questions concerning government knowledge need to be resolved. 2. Forfeiture of Community Property Interest The jury found that Bruce Emery Griffin and Donna Krauss Griffin, his wife, owned the seized property. The plaintiff argues that Donna Krauss Griffin is not entitled to benefit from her husband’s plea agreement, nor does she have any other defense to a forfeiture of her one-half community property interest in the seized assets. The government asks that the judgment be altered to allow a forfeiture of one-half of the seized property. The law of Texas applies to property owned by people married elsewhere but domiciled in Texas. Tex.Fam.Code Ann. § 4.01 (Vernon 1975). The Griffins were living on the D.K.G. Ranch at the time of its seizure, and had expressed an intention to stay in Texas during sentencing in Florida. The Griffins were therefore domiciled in Texas. See, e.g. Crowley v. Glaze, 710 F.2d 676, 678 (10th Cir.1983) (presence and intent define domicile). In Texas, property possessed by both spouses is presumed to be community property. Tex.Fam.Code Ann. § 5.02 (Vernon 1975). The D.K.G. Ranch and all other seized items are thus presumed to be community property. If they were not community assets, they would in all likelihood be the separate property of Bruce Emery Griffin, and the present argument would be irrelevant. The spouses interests in community property are of equal dignity, and are joint and undivided. Broday v. United States, 455 F.2d 1097, 1100 (5th Cir.1972) (spouses interests are “equal and equivalent”); Lifson v. Dorfman, 491 S.W.2d 198, 200 (Tex.Civ.App. — Eastland 1973, writ ref’d n.r.e.) (joint ownership). As a result, Bruce Emery Griffin owns an undivided one-half interest in each and every item of property seized. No item could be sold without affecting his interest. Since he has an ownership interest in each piece of property, the plea agreement protects everything as long as it was known to the government at the time of the bargain. This Court cannot divide the community property in order to enable a sale. Community property in Texas may be divided in a divorce proceeding or by agreement of the spouses. Tex.Fam.Code Ann. § 3.63 (Vernon Supp.1986) (division on divorce); Tex. Const. art. 16, § 15 (Vernon Supp.1986) (division by agreement). Historically, community property cannot be divided to satisfy a forfeiture. See generally Hardin v. Hardin, 217 S.W. 1108 (Tex. Civ.App. — Texarkana 1920, no writ). This Court is unwilling and unable to make a division in this case. Even if a forfeiture of a wife’s one-half interest was somehow cognizable under Texas property law, it is still unclear whether the government is entitled to forfeit Donna Krauss Griffin’s share. She has failed to raise any defense only because she has asserted a fifth amendment privilege against being forced to do so. This Court cannot conclude that a forfeiture of her interest is appropriate under these circumstances. 3. Gold Bars Purchased Before 1978 The plaintiff argues that there was insufficient evidence to support the jury’s finding that the seized gold and jewelry was purchased before 1978. No issue was submitted to the jury with regard to the jewelry, and no finding has or will be made that it was purchased before 1978. The only issue now before the Court concerns the gold. There was evidence proving Bruce Emery Griffin’s purchase of some gold bars prior to 1978. Two of the seized gold bars were positively identified as being among the group of bars purchased before 1978, and the other seized gold bars were similar to the bars bought before 1978. Under these facts, the Court cannot conclude that the evidence was insufficient to support the jury’s verdict. This does not end matters concerning the gold bars, but any further issues will be addressed in the context of the severed proceeding involving the seized cars, gold and jewelry. C. Plaintiffs Motion to Set Aside Judgment and for Judgment Non Obstante Verdicto, or in the Alternative, Motion for New Trial In addition to its Motion to Alter or Amend the Judgment, the plaintiff has filed a lengthy Motion to Set Aside Judgment and for Judgment Non Obstante Verdicto, or in the Alternative, Motion for New Trial. The latter motions contain a number of different but related arguments. For ease of reference, the Court will treat the arguments raised under the judgment notwithstanding the verdict heading separately from those raised under the new trial heading. 1. Motion for Judgment Notwithstanding the Verdict The standard to be employed by a district court when reviewing a motion for judgment notwithstanding the verdict has been “firmly established” and thoroughly explained in this Circuit. In determining whether the motion should be granted, the Court should consider all the evidence — not just that evidence which supports the non-mover’s case — but in the light and with all reasonable inferences most favorable to the party opposed to the motion. If the facts and inferences point so strongly and overwhelmingly in favor of one party that the Court believes that reasonable men could not arrive at a contrary verdict, granting of the motions is proper. On the other hand, if there is substantial evidence opposed to the motions, that is, evidence of such quality and weight that reasonable and fair-minded men in the exercise of impartial judgment might reach different conclusions, the motions should be denied, and the case submitted to the jury. A mere scintilla of evidence is insufficient to present a question for the jury. The motions for directed verdict and judgment n.o.v. should not be decided by which side has the better of the case, nor should they be granted only when there is a complete absence of probative facts to support a jury verdict. There must be a conflict in substantial evidence to create a jury question. However, it is the function of the jury as the traditional finder of the facts, and not the Court, to weigh conflicting evidence and inferences, and determine the credibility of witnesses. Nichols Construc. Corp. v. Cessna Aircraft Co., 775 F.2d 1325, 1331 (5th Cir. 1985); quoting Boeing Co. v. Shipman, 411 F.2d 365, 374-75 (5th Cir.1969) (en banc). In listing its reasons for requesting judgment notwithstanding the verdict, the government repeats the three arguments it raised at trial in its motions for directed verdict. First, they argued that the forfeiture of the D.K.G. Ranch could be accomplished regardless of the pre-plea agreement made in Florida. Second, they urged that allowing the jury to decide the question of ownership would open the door to Bruce Emery Griffin’s attempt to pierce his own corporate veil. Since the lifting of a corporate veil requires equitable intervention, the question should not go to a jury, but should be resolved in the government’s favor because the equities are allegedly on its side. Finally, the plaintiff contended that corporate ownership of the property was established as a matter of law. In expanding its argument on these three issues, however, the government’s motion deletes the third and substitutes a different argument concerning judicial admissions made by Griffin which allegedly concede the issue of corporate ownership. . Since questions concerning the weight of the evidence on the corporate ownership issue are actually discussed later in the government’s motion, the Court will treat them under the new trial hearing. Each of the remaining three arguments will be discussed separately. a. Pre-plea agreement. Issues concerning the pre-plea agreement are now moot, since the court that accepted the agreement has interpreted it in a manner that precludes forfeiture of property owned by Bruce Emery Griffin and known to the government at the time. Even if this Court wanted to intervene now, no reason is offered by the government to allow such an act. It would be improper to disregard the decision of another court. The agreement is valid, will be enforced, and proscribes forfeiture. That is the law of this case. Ever since the claimants filed their motion to specifically enforce the agreement, both sides have concentrated their efforts in Florida. As the government quietly concedes in the present motion, the arguments with regard to the plea bargain were “presented by the United States before Judge Hoeveler,” and were “known by this Court.” Knowledge of arguments raised in a collateral proceeding in another court does not bestow upon this Court either the duty or the right to sua sponte decide those arguments. Knowledge allowed this Court to interpret Judge Hoeveler’s decision, as was done in this Court’s order of September 23, 1985. It allowed nothing more. A token mention of the plea agreement in this Court was made in the claimant’s motion for change of venue, filed in August of 1984. The government filed a response, but confined its response to the venue question. The merits of the plea agreement were not raised. The venue question was decided in favor of Florida, at least as far as the plea agreement was concerned, in this Court’s September order. See Memorandum Opinion and Trial Setting Order 4-11 (September 23,1985). The merits of this decision have been rehashed in this order. See supra p. 1548-49. Issues concerning the scope of government knowledge and degree of government authority were raised by the plaintiff in its First Motion for Partial Summary Judgment filed in December, 1984. The fact that this was an in rem forfeiture was mentioned. Arguments concerning inception of title at the moment of the illegal act were not mentioned. By this time, hearings were well under way in Judge Hoeveler’s Court concerning the issues in the government’s motion and more. The government has never offered any argument or authority that would allow this court to interpret the bargain. In fact, the government conceded that waiting for a decision from Judge Hoeveler was “perfectly reasonable.” See Transcript of Hearing in Chambers Before the Honorable William M. Steger, December 17, 1984, at 38. It was clear that the court in Florida was providing the best and proper forum. Issues arising out of the in rem nature of this forfeiture were never presented to this Court. Issues concerning the scope of the authority possessed by the government’s agents or the breadth of the plea agreement were presented in an untimely fashion in an improper forum. Although unlikely, these arguments may ultimately decide this case in the government’s favor, yet this Court was never afforded a genuine opportunity to review them. As a practical matter, the government should have told the Court about the plea agreement issues on the night of March 13, 1984, so that some determination could have been made before the seizure. The government never gave this Court that chance. b. Piercing a corporate veil. The government devotes more than one fourth of the material in the present motion to the argument that it would be inequitable to allow Bruce Emery Griffin to pierce his own corporate veil. The Court could agree with the government’s argument, and yet it would make no difference in the result of this case. The government’s argument assumes facts that are not supported by the evidence, a circumstance which renders the issue entirely irrelevant. There are no veils to be lifted in this case. If the Court had jumped to the conclusion that the corporations actually owned the seized property, it is then true that the veil of those corporations would have needed to be lifted in order to attribute ownership to Bruce Emery Griffin. The government did jump to this conclusion, and in so doing it attempted to cloud the real issue in the trial. The question of whether the corporations actually owned the seized property was in reality the very question which the jury had to decide. If the corporations never owned the property, there would be no need to pierce a corporate veil. There is no such need in this case, since the jury decided the corporations did not own the property, but rather the Griffins did. Based on the evidence presented, this Court is certain that other reasonable people could and would agree with the jury’s conclusion. This is more than enough to survive the government’s motion. Judgment notwithstanding the verdict would be inappropriate in the present case. See generally Crowe v. Lucas, 595 F.2d 985, 989 (5th Cir.1979). The claimants, who had the burden of proof on the issue, presented a detailed account of how the seized property was acquired. Numerous witnesses testified that Bruce Emery Griffin negotiated most of the purchases and provided all of the money. He held himself out as the owner and most people treated him as the owner. All this could have been excused if some evidence had been presented tending to show that Griffin was acting merely as an agent for the corporation. The testimony was to the contrary, however. Of the three automobiles seized, one, the Mercedes, was not registered in any state. The other two were registered to “D.K.G. Ranch” and “D.K.G. Appaloosa.” None were registered to “D.K.G. Appaloosas, Inc.” or “Nabuc, Ltd.,” the official legal names of the two corporations involved. Of approximately 150 horses on the ranch at the time of seizure, 30 to 35 of them were under an open registration, meaning no owner was listed. Some were registered to Donna Krauss Griffin, and some were registered to the “D.K.G. Ranch.” The bulk of the remainder were registered as “D.K.G. Appaloosa.” Only one was registered to “D.K.G. Appaloosas, Inc.” (Since the seizure, horses have been registered to “D.K.G. Government Control” and have been given such colorful names as “Forfeiture,” “Interrogator,” and “F.B.I. Guy.”) Even assuming that horse registrations are legal documents of title, which was never shown, only one of the horses was registered to a corporation. Much of the ranch equipment and other items of property were purchased with checks from the Bank of Nova Scotia in the Bahamas. These checks did not have a corporate name printed on them, but instead looked like cashier’s checks and functioned like cash. The government’s witness, F.B.I. Agent Joseph Masterson, did not know the source of the funds behind the checks, but even he speculated that it was Bruce Emery Griffin, not the corporations. Griffin confirmed this speculation during his testimony. Of the four domestic checking accounts maintained at the Pilot Point Bank in Texas, only one bore a corporate name. In order to do business as a corporation, such an entity must use its corporate name. This is the rationale behind the strict requirements for unique corporate names. See Tex.Bus.Corp.Code Ann. art. 2.05 (Vernon 1980). To say that the other names used were aliases for the corporations ignores the requirements for operating under an assumed name, and the penalties for failure to comply. Tex.Bus. & Comm.Code Ann. § 36.11, 36.25 (Vernon Supp.1986). If Bruce Emery Griffin wanted his corporations to own this property, he failed to accomplish his purpose. He also did not fool anyone, including the government. None of the personalty or other items of property had any documents proving ownership. Testimony and common sense bore out the fact that the furniture, clothing, and other similar goods were owned by the Griffins. The Griffins’ initials on the jewelry dictate a similar conclusion for those assets. Testimony from the sellers of the rest of the property, including the gold, confirm that Bruce Emery Griffin bought it for himself. This evidence and more pointed to Bruce Emery Griffin as the true owner of the seized property. At least three facts favored the government. The real estate is deeded to “Nabuc, Ltd.” An accountant who worked on the books for the ranch treated it as a corporation. Finally, one or two people were carer ful to refer to the corporations rather than saying Bruce Griffin owned the property. The first of these three facts is by far the most persuasive, yet it falls far short of requiring a government verdict by itself. See infra p. 1567-1568. In short, there was substantial evidence to support a finding that Bruce Emery Griffin owned the property, and there was also some evidence to the contrary. A jury question was raised, and they performed their function as finders of the facts by weighing the conflicting evidence and inferences and determining the credibility of the witnesses. Nichols Construction Corp., 775 F.2d at 1331. They found in favor of the claimants, and no judgment notwithstanding the verdict would be appropriate. Even if the Court indulged a corporate veil argument in this case, the government’s reliance on that argument given the facts developed is misplaced. The rules cited by the government were designed to protect those who relied upon the existence of a distinct corporate entity. Fidelity & Deposit Co. of Maryland v. USAFORM Hail Pool, Inc., 523 F.2d 744, 758 (5th Cir.1975), cert. denied, 425 U.S. 950, 96 S.Ct. 1725, 48 L.Ed.2d 194 (1976). In this case, however, no one, including the government, relied on the existence of distinct corporations. Everyone was concerned with Bruce Emery Griffin, at least until it became necessary to avoid the terms of a pre-plea agreement. Another reason requires rejection of the government’s arguments. It is true that shareholders cannot hide behind the corporate veil, then discard it when it is no longer useful. See St. Paul Fire & Ma rine Insur. v. Vest Transportation Co., Inc., 666 F.2d 932, 939 n. 9 (5th Cir.1982); Delta Pipe Fabricators, Inc. v. Bullock, 638 S.W.2d 652, 653 (Tex.App. — Austin 1982, writ ref d. n.r.e.). The facts of this case suggest, however, that regardless of his intent, Bruce Emery Griffin never succeeded in hiding behind a corporate veil. With the possible exception of the realty, the corporations never owned the seized property. The government is not the type of party intended to be protected by a refusal to pierce a corporate veil, and Griffin is not the type of party intended to be punished by the same. There are no corporate veils in this case, and there is no reason to manufacture any. c. Mockery by admission. In their original pleading, filed on March 26, 1984, the claimants alleged that Bruce Emery Griffin was authorized to file a claim on behalf of D.K.G. Appaloosas, Inc. and that the corporation owned the seized property and was entitled to its return. In the alternative, the claimants alleged that Bruce Emery Griffin was the legal and beneficial owner of the property. The pleading was verified by Bruce Emery Griffin. The government asserts that the allegations made by Griffin as agent for the corporation are binding on him individually as judicial admissions. Using perhaps inappropriately strong language, the government argues that Griffin’s sworn statement that the corporations own the seized property makes a mockery of the jury’s verdict and of the entire judicial system. The plaintiff urges the Court to hold Griffin to his word and find that the corporations own the property. There is some authority for the proposition that factual assertions in pleadings and pretrial orders are binding judicial admissions. See White v. ARCO/Polymers, Inc., 720 F.2d 1391, 1396 (5th Cir.1983) (admissions made in pleadings and repeated in pretrial order and proposed findings of fact were binding). In this case, however, there are no unequivocal admissions often repeated up to the time of trial. Instead, the highlighted statements in this case merely set out alternative claims in a pleading. A party has a right to state separate claims in a pleading regardless of their consistency. Fed.R. Civ.P. 8(e)(2). This means the pleading may also present alternative statements of the facts. 2A Moore’s Federal Practice 8-222 (1985). The claims were made in the alternative, and the second alternative, ownership by Bruce Emery Griffin, prevailed on the merits. The government could not have raised this argument because it loathes any inconsistency. In April of 1985, the government filed a motion to strike the pleadings upon which they now rely because, among other asserted reasons, Bruce Emery Griffin was not authorized to act on behalf of the corporations. In addition, the premise of the government’s argument is that the actions of Griffin as a corporate agent bind the corporations, yet they also maintain that actions of government agents have no effect on the government, and so evidence concerning the latter should have been excluded. The statements in claimants’ pleadings do not justify judgment n.o.v. The government’s Motion to Set Aside Judgment and for Judgment Non Obstante Verdicto is hereby DENIED. The alternative is considered next. 2. Motion for New Trial. In the context of the present case, a new trial would be appropriate if this Court decided the verdict was contrary to the weight of the evidence, the trial was unfair, prejudicial error was committed in its course, or some other reason based on this Court’s appraisal of the fairness of the trial and reliability of the jury’s verdict required one. Smith v. Transworld Drilling Co., 773 F.2d 610, 613 (5th Cir.1985); Fed.R.Civ.P. 59(a). In deciding whether the verdict was contrary to the weight of the evidence, the trial court should weigh “all of the evidence, but need not view it in a light favorable to the nonmoving party.” Id. at 613. Among the factors allegedly showing prejudicial error in the course of this trial, the government points to errors purportedly made in the admission of evidence. See, e.g. Montgomery Ward & Co. v. Duncan, 311 U.S. 243, 251, 61 S.Ct. 189, 194, 85 L.Ed. 147 (1940). The government also questions the reliability of the jury’s verdict due to an asserted failure to follow the Court’s instructions. 6A Moore’s Federal Practice 59-124-59-126 (1985). The final decision on whether to grant a new trial is left to the district court’s discretion, with the proviso that the court should always respect the collective wisdom of the jury and should not merely substitute its opinion for the jury’s verdict. Smith, 773 F.2d at 613. The portion of the government’s motion urging a new trial consists of a jumbled array of different arguments. For ease of consideration, the Court will group these arguments according to their subject matter, and then will discuss each individually, a. Repetition of earlier arguments. Plaintiff begins its motion for new trial by reasserting the reasons presented in their arguments for judgment notwithstanding the verdict. None of the results stated in the previous discussion of those arguments changes in light of the less strict standards governing motions for new trial. In discussing those arguments under their new heading, however, plaintiff does add some new dimensions that warrant further consideration. Plaintiff argues that only the corporations had the power to convey the seized property, therefore conclusively establishing their ownership of it. This is an attempt to bridge the gap between this case and a case involving corporate veils. The argument is literally accurate only with regard to the real estate, where the deeds are in the name of Nabuc, Ltd. There were no documents of title concerning the remainder of the property that would preclude conveyance by the Griffins. Even if there were, the right to sell property is only one of several indicia of ownership. See, e.g. Amalgamated Food Emp. Union Local 590 v. Logan Valley Plaza, 391 U.S. 308, 319, 88 S.Ct. 1601, 1609, 20 L.Ed.2d 603 (1968) (ownership includes right to keep others from using the property); Henneford v. Silas Mason Co., Inc., 300 U.S. 577, 582, 57 S.Ct. 524, 526-27, 81 L.Ed. 814 (1937) (ownership consists of a bundle of privileges, including the right to use the property); United States v. Lutz, 295 F.2d 736, 740 (5th Cir.1961) (laundry list of indicia). The claimants produced an abundance of evidence showing that the Griffins exercised all the prerogatives of ownership. This last fact is true for the land as well as the other seized property. At a minimum, the Griffins are equitable owners of the land. Since the term “owner” is to be broadly defined in forfeiture cases, there was sufficient evidence to allow the jury to conclude that the Griffins owned all of the seized property. United States v. $47,875.00 in U.S. Currency, 746 F.2d 291, 293 (5th Cir.1984) (the term “owner” should be broadly construed to include anyone with a recognizable legal or equitable interest in the seized property). The government also argues that Bruce Emery Griffin admitted operating as a corporation. Since questions concerning his statements in sworn pleadings have already been discussed, the Court will assume the government is referring to oral statements made in the course of the proceedings, including at the time of the seizure. These statements were accepted into evidence as admissions against interest. They did not conclusively prove corporate ownership, but were' merely factors which the jury could weigh in reaching their verdict. The government also asserts that the horse operation was conducted in the name of D.K.G. Appaloosas, Inc. since that corporate name was used on the ranch’s books and records. There was an abundance of testimony, however, that the horse operation was conducted by Bruce Emery Griffin in his name, and that the vast majority of the people who had business dealings with the ranch assumed he owned it. In addition, the corporate name was not on all records of the operation, including the checks used to make major purchases. Even if the corporate name did appear on the ranch’s business documents, such books and records are not documents of title. They do not conclusively prove corporate ownership, but rather they merely tend to show such ownership. The jury was entitled to weigh any evidence of corporate names on ranch records against all the other evidence tending to show the Griffins owned the property. Their verdict speaks for itself, and certainly is not contrary to the weight of the evidence. b. Denial of a motion to compel. The government also asserts that their pre-trial motion to compel production of bank records was denied, thus possibly denying them access to evidence which might have helped prove the corporate nature of the D.K.G. Ranch’s business. There are several unclear aspects to this argument. First, the government’s motion to compel was not denied, but instead was granted at a hearing held on October 10, 1985 in a ruling subsequently reduced to writing in an Order Compelling Discovery signed on October 15,1985. See Transcript of Hearing in Chambers Before the Honorable William M. Steger, October 10, 1985, at 10. The order set a deadline of October 18, 1985 for production of the requested documents. Apparently the government was upset because the claimants never produced any bank records to help it prove corporate ownership of the seized assets. This situation could only have been remedied by a motion for sanctions for failure to comply with the Court’s order. On October 24, 1985, the government filed such a motion, seeking to strike the claims and enter a default decree of forfeit