Cervantes v. USA, et al.

This case arose out of the Government’s negligent sale of a marijuana-laden vehicle to Plaintiff Jose Aguado Cervantes. On July 15, 1999, Cervantes, a 67 year-old Mexican national and resident, purchased a vehicle from a United States Marshal Services auction. Approximately four months earlier, the vehicle had been seized by the Government in connection with its use in smuggling illegal aliens.  Unfortunately, the Government failed to properly search the vehicle prior to selling it and if anyone had properly searched the vehicle, they would have discovered the 119 pounds of marijuana contained in the bumpers. Cervantes was unaware of the marijuana in the bumpers until he attempted to cross the border on October 22, 1999, at which time a drug-sniffing canine alerted to the vehicle.

Cervantes, who has never had any criminal convictions, informed the arresting officers of the fact that he had purchased the vehicle at the Government auction.  Nevertheless, he was arrested and incarcerated for importing illegal drugs and spent three and a half months in prison for a crime he did not commit. 

The Government claimed it was immune from Cervantes’ lawsuit for negligence. 
The Hon. Judith Keep agreed with this immunity argument and dismissed the case. This ruling was appealed and the case went to the 9th Circuit Court of Appeals.  On June 12, 2003, the 9th Circuit issued its published opinion blistering the Government’s performance in this case and ridiculing its reliance on the immunity defenses. {See Cervantes v. United States of America (9th Cir. 2003) 330 F.3d 1186}. In fact, during oral argument, the 9th Circuit ordered the Government to begin earnest settlement negotiations with Cervantes. This instruction obviously fell on deaf ears as the Government initially made an offer of  $22,680.00.  This settlement offer ostensibly included money for Mr. Cervantes’ pain and suffering and emotional distress along with reimbursement for the replacement of the vehicle. Unbelievably, the Government stated to the undersigned that $22,680.00 was “three times” what the case was worth.

After the case did not settle, the government brought another motion to dismiss the case on grounds that another immunity defense applied.  Mr. Cervantes successfully opposed this motion and the case settled shortly thereafter for $275,000.00.

This case received national attention and was featured on CNN, the Associated Press, Reuters, Los Angeles Times, San Diego Tribune, The CBS Evening News, Los Angeles Daily Journal and various local television stations.  The defense attorney for the government was Timothy Stutler.