Vehicle forfeiture after an OWI in Michigan

Vehicle forfeiture means the court orders the vehicle used in the offense taken and sold, or, for a leased vehicle, returned to the leasing company.^[2][7] In Michigan OWI cases it is available only for repeat offenses and certain serious offenses, never for a first OWI or OWVI, and only if the defendant owns the vehicle in whole or in part or leases it.^[1][2]

Forfeiture is discretionary: the judgment of sentence "may" require it.^[2] For repeat OWI, if the court does not order forfeiture, it must order vehicle immobilization instead.^[8]

Which convictions allow forfeiture

Under MCL 257.625n(1) the court may order forfeiture or return to the lessor after a conviction for:^[1]

• OWI within 7 years of a prior conviction, or after 2 or more priors (second or third offense);^[2][1]
• OWVI as a second or third offense;^[1]
• OWI causing death or causing serious impairment of a body function;^[1]
• OWI or OWVI with a passenger under 16 (child endangerment);^[1]
• driving while suspended or revoked causing death or serious impairment;^[1]
• reckless driving causing death or serious impairment (since October 31, 2010).^[1]

For OWVI, the statute allows forfeiture only for a second or third offense, so a first OWVI conviction cannot lead to forfeiture under 625n.^[1]

The OWI causing death and serious impairment provisions say the same thing in their own words: the sentence may include forfeiture, and if the vehicle is not forfeited the court must order immobilization.^[9] See OWI causing death and OWI with a child in the vehicle.

Owned and leased vehicles

Forfeiture applies to "the vehicle used in the offense" if the defendant owns it in whole or in part; if the defendant leases it, the remedy is return to the lessor.^[2] Returning a leased vehicle does not affect the lessor's rights or the defendant's obligations under the lease, and the court may order the defendant to pay a co-lessee whatever liability it finds.^[10]

The forfeiture process, step by step

1. Seizure (possible). The court may issue a seizure order on a showing of probable cause that the vehicle is subject to forfeiture.^[11]
2. Return pending the case (possible). An owner-defendant whose vehicle was seized may move for its return. The court must hear the motion within 7 days, may return the vehicle if the defendant has title or a lease and the family needs it, and must then require a bond equal to its retail value and a lien.^[12]
3. Petition. Within 14 days after conviction, the prosecuting attorney may petition for forfeiture, giving notice to the defendant and defense lawyer, all owners, and any lienholder.^[3]
4. Claims. Within 14 days after that notice, the defendant, an owner, a lessee or a secured lender may file a claim of interest.^[3]
5. Hearing. Within 21 days after the claim period ends, but before or at sentencing, the court holds a hearing.^[3] It decides the legitimacy of each claim, any co-owner's equity, the defendant's liability to a co-lessee, and whether to order forfeiture.^[7]

In deciding, the court must review the driving record, and multiple OWI convictions or multiple suspensions, restrictions or denials under MCL 257.904, the driving-while-suspended statute, "shall weigh heavily in favor of forfeiture."^[4]

The time limits are not a defense on their own. A failure by the court or prosecutor to meet them does not prevent forfeiture unless the court finds the owner or claimant suffered substantial prejudice.^[13] The prosecutor may also use any other Michigan forfeiture law or matching ordinance.^[14]

Protection for innocent co-owners and lenders

Forfeiture is subject to the interest of a secured lender who did not know of or consent to the violation.^[5] When a forfeited vehicle is sold, the proceeds are paid in this order:^[7]

1. any secured lender without prior knowledge of or consent to the violation;^[5]
2. the equity of a co-owner without prior knowledge or consent;^[5]
3. restitution ordered in the case;^[5]
4. towing and storage fees, then victims' claims not covered by restitution;^[7]
5. government liens, then the expenses of the seizure, custody and sale;^[7]
6. any balance to the government units involved, 75 percent for law enforcement and 25 percent for crime victims' rights.^[7]

Claims of interest from the defendant, an owner, a lessee or a secured lender are due within 14 days after the prosecutor's notice.^[3] If the defendant's family member owned the car and knowingly let an intoxicated person drive it, that owner may face other consequences, including immobilization of the vehicle and a separate charge.^[15][16]

What is prohibited

• Knowingly concealing, selling, giving away or transferring a vehicle to avoid forfeiture or return to the lessor is a misdemeanor punishable by up to 1 year and/or $1,000.^[6]
• Transferring or attempting to transfer a vehicle subject to forfeiture with intent to avoid it, or transferring it without a court order to a use-tax-exempt person (which includes a spouse, parents, siblings, children and other close relatives), is also a misdemeanor with the same maximum.^[17][18][19]
• A person whose license is suspended, revoked or denied for a third or subsequent OWI may not buy, lease or otherwise acquire a motor vehicle during that period.^[20]

How forfeiture fits with other vehicle sanctions

Forfeiture is one of several vehicle consequences in a repeat or serious OWI case. When an officer detains a driver for a violation for which immobilization is required, the officer must confiscate and destroy the registration plate and issue a temporary plate, valid until the charges are dismissed or the case ends in a plea or verdict.^[21] If the vehicle is not forfeited after a repeat OWI, immobilization follows instead.^[8] And a defendant with a third or subsequent OWI may not acquire another vehicle while the license sanction lasts.^[20]

Specialty court exemption

A participant in the specialty court interlock program whose vehicle would otherwise be subject to immobilization or forfeiture is exempt from both if the person is in good standing or completes the program and does not later break a law that carries those sanctions.^[22] The forfeiture statute itself opens with an exception for section 304.^[2] See sobriety courts.

Common misunderstandings

• "A first OWI can cost you your car through forfeiture." Not under 625n; first offenses face only discretionary immobilization.^[1][23]
• "If the prosecutor misses a deadline, the car is safe." Only if the court finds substantial prejudice.^[13]
• "Signing the car over to a relative protects it." That transfer can itself be a crime.^[6][17]

For how forfeiture fits into the full sentence, see second-offense penalties, third-offense OWI, and license plates and registration. Families affected by a seizure can also read when a family member is arrested for OWI.