09-C-1156 Kaloti Wholesale, Inc., v. U.S.

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Torts
FTCA

Where federal agents seized infant formula that then spoiled and lost its value, the owner has a claim under the Federal Tort Claims Act.

“In the present case, I cannot say that plaintiff fails to plausibly allege that its claim is not within the CAFRA exception to the detention of goods exception. Plaintiff alleges facts from which it could be plausibly inferred that the government seized the infant formula for the purpose of forfeiture. Although the government disputes this and contends that it also had other purposes in mind, I must treat all of plaintiff’s allegations as true. Plaintiff also alleges facts sufficient to satisfy the other CAFRA requirements. It alleges that its interest has not yet been forfeited inasmuch as the forfeiture action initiated by the government has not concluded. Plaintiff further alleges that it has continued to request return of the formula thus indicating that its interest is not remitted or mitigated. Finally, plaintiff appears not to have been convicted of a crime relating to the seizure of the formula.”

09-C-1156 Kaloti Wholesale, Inc., v. U.S.

E.D.Wis., Adelman, J.