Supreme Court ruling disappoints small businesses in civil asset forfeiture case

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Brad Close National Federation of Independent Business | Official Website

Supreme Court ruling disappoints small businesses in civil asset forfeiture case

The National Federation of Independent Business (NFIB) has expressed disappointment over the recent decision by the U.S. Supreme Court in the case Culley v. Steven Marshall, Attorney General of Alabama. The case pertains to civil asset forfeiture and the Due Process Clause.

Small businesses had been optimistic that the court would rule that innocent small business owners are entitled to a prompt post-deprivation hearing. However, the ruling suggests that many small businesses will now be compelled to endure a protracted and expensive forfeiture process.

NFIB, which had filed an amicus brief in this case, had urged the Supreme Court to overturn the Eleventh Circuit’s ruling. "When it comes to civil asset forfeiture, small business owners who rent, sell, or conduct cash transactions are particularly vulnerable to harm," said Beth Milito, Executive Director of NFIB’s Small Business Legal Center.

Milito added that due to this decision, many small business property owners will continue being targeted and affected by a civil asset forfeiture procedure that violates due process and penalizes businesses for actions committed by the public.

The crux of the case was whether law enforcement's practice of seizing personal property - known as civil asset forfeiture - requires a post-seizure probable cause hearing under the Due Process Clause. The NFIB's brief detailed how small businesses become targets and suffer damage in absence of clear constitutional guidelines around civil asset forfeiture.

While expressing disappointment over the court's failure to bolster protection of personal property under the Due Process Clause by mandating a separate post-seizure hearing, NFIB remains hopeful. They believe that emphasizing on timely forfeiture hearings might prevent drawn-out property recovery proceedings.

The NFIB Small Business Legal Center is dedicated to protecting rights of small business owners across America's courts. Currently, NFIB is actively involved in more than 40 cases in federal and state courts nationwide including at the U.S. Supreme Court.