Minnesota Civil Vehicle Forfeiture and Risks for Blameless Owners, Lenders, and Lessors

Generally, owners, lessors, and secured and unsecured parties will not lose their interests in a motor vehicle even when it is seized in connection with a lawful arrest or search.  However, there are circumstances in Minnesota where a blameless vehicle owner, lessor, and secured or unsecured party can lose their legal interests where the vehicle is civilly forfeited according to Minnesota’s Vehicle Forfeiture Statute, found at Minn. Stat. 169A.63. Generally, the statute allows for forfeiture in connection with certain categories of DWI offenses, regardless of whether the operator holds any interest in the vehicle.  This can leave innocent parties scrambling to protect their legal interests in a vehicle someone else used to commit a DWI.

The circumstances justifying forfeiture and the form, timing, and requirements for opposing a forfeiture are set out by the statute in detail. Broadly speaking, these are the avenues set out in the statute for innocent parties to protect their interests., though other avenues may exist.

Any time before a court enters an order to dispose of a forfeited vehicle, a party with an interest in that vehicle can file a petition with the prosecuting authority for “remission or mitigation” of the forfeiture. Minn. Stat 169A.63 Subd. 5a.  The prosecutor can to drop or alter the forfeiture if they decide the forfeiture occurred without any fault on the part of the petitioner or if other circumstances justify the changes.  Otherwise, the legal avenues available vary by who claims an interest.

The interests of vehicle lessors and secured parties (usually lenders) are usually in a more secure position than those of vehicle owners.  If the vehicle is subject to a perfected security interest, or a lease agreement with a term lasting 180 days or more, the interest holder is protected from forfeiture unless the holder somehow knew of or consented to the crime.  Note that if the vehicle is sold, law enforcement will always deduct its costs from the sale proceeds regardless of whether the proceeds are enough to satisfy the amounts due under any other contract or loan agreement.  Parties holding unperfected security interests parties have an uphill battle and must establish the validity and amount of their interest to the court clear and convincing evidence before their interest is protected. 

The main protection for vehicle owners is an “innocent owner defense,” where the owner must show they did not have “actual or constructive knowledge” the vehicle would be used unlawfully, or else they took reasonable steps to keep the offender from using that vehicle.  It is presumed family members knew the vehicle would be used unlawfully when the offender had 3 or more prior DWI convictions. This not apply to joint owners.