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Simple English definitions for legal terms
L–CLAIM PROCEEDING
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A quick definition of L–CLAIM PROCEEDING:
An L-Claim proceeding is a legal hearing that takes place under the Racketeer Influenced and Corrupt Organizations Act. The purpose of this hearing is to make sure that any property that is ordered to be forfeited belongs only to the defendant. If a third party believes they have a claim to the property, they can file a petition for an L-Claim proceeding. However, this is not a way for multiple parties to divide the assets among themselves, and general creditors of the defendant are not allowed to file a petition. The name "L-Claim" comes from the legal basis for this proceeding, which is found in subsection l of RICO's penalty provision.
A more thorough explanation:
Definition: An L-Claim proceeding is a legal hearing that takes place under the Racketeer Influenced and Corrupt Organizations Act (RICO). The purpose of this hearing is to ensure that any property that has been ordered to be forfeited belongs solely to the defendant. This means that a third party who claims an interest in the property can file a petition for an L-Claim proceeding. However, the purpose of this hearing is not to divide the assets among competing claimants, and general creditors of the defendant are not allowed to maintain an L-Claim petition. The name "L-Claim" refers to its legal basis in subsection l of RICO's penalty provision. (18 USCA § 1963(l)(2))
Example: Let's say that a person is convicted of a crime and ordered to forfeit their car. However, the car is jointly owned by the defendant and their spouse. In this case, the spouse could file an L-Claim petition to prove that they have a legal interest in the car and that it should not be forfeited.
Explanation: This example illustrates how a third party can file an L-Claim petition to claim an interest in property that has been ordered to be forfeited. In this case, the spouse is not a competing claimant, but rather has a legal interest in the car that should be recognized.