Unclaimed Property and Corporate Compliance News

Rinse and Repeat: Delaware Subject to Yet Another UP Lawsuit

Photo by smokedsalmon on FreeDigitalPhotos.netLess than a month ago, a federal court judge said that Delaware's unclaimed property audit process "shocks the conscience." Yet here we are again, talking about audit practices and requests that are unconstitutional, irrelevant, and over broad. And potentially open up the holder to potential disclosure of trade secrets and other confidential information and even potential liability in the event of a data security breach. This time Delaware is playing its game of "gotcha" with the office supply store Office Depot, Inc., a Delaware corporation.

ULC Approves the Model Unclaimed Property Act

Today, the Uniform Law Commission ("ULC") voted 49-0 to approve the Revised Uniform Unclaimed Property Act. California abstained, while Missouri, New Jersey, and Puerto Rico were absent from the vote.

The model act will now return to the unclaimed property committee for the reporter to draft the legislative notes. Once the notes are finalized and possible endorsements are sought from the American Bar Association ("ABA") and the National Association of Unclaimed Property Administrators ("NAUPA"), the ULC will begin the process of introducing the act at the state level.

What Does Temple-Inland Mean for Unclaimed Property Holders?

What's next for unclaimed property holders?It’s been less than 48 hours since the latest bombshell dropped in Delaware, after US District Court Judge Gregory Sleet said that Delaware was playing a game of “gotcha” with holders. But what does this mean for you, the corporate unclaimed property holder?

Temple Inland For the Win!

In a surprise move today, the newly assigned judge in Temple-Inland, Inc. v. Delaware issued an opinion and order granting Temple Inland’s motion for summary judgement. In 2015, the company survived a motion to dismiss. The Court found that the state's actions were troubling, to say the least.

The Court began its analysis on the substantive due process claims by stating:

21 States Sue Delaware Over Unclaimed Property

Twenty-one states, led by Texas and Arkansas, have filed a lawsuit against Delaware at the U.S. Supreme Court, invoking original jurisdiction for disputes between the states. The States are seeking more than $150 million in "official checks" from Delaware, part of the ongoing dispute over the MoneyGram checks.

Delaware Asks Supreme Court to Take MoneyGram Case

US Supreme CourtDelaware followed up its filings in the Federal District Court case with a Motion for Leave to File a Bill of Complaint with the U.S. Supreme Court in the case concerning official checks issued by MoneyGram.

Connecticut Bill to Require Cash Back on Small Balance Gift Cards

Connecticut is on the verge of joining a growing number of states that require gift card issuers to issue cash back on small balances remaining on gift cards, as HB 5664 awaits the governor's signature. Connecticut Governor Dan Malloy is expected to sign the legislation that would require retailers in the state to issue cash back on balances under $3 after a purchase has been made. The $3 limit is a compromise from an original $10 cash back. Once signed, the law becomes effective October 1, 2016.

Delaware and MoneyGram Say Case Belongs in U.S. Supreme Court

Pennsylvania sued Delaware and MoneyGram in U.S. District Court for the Middle District of Pennsylvania in February 2016. Both Delaware and MoneyGram have filed Motions to Dismiss the case, saying that the U.S. Supreme Court has original and exclusive jurisdiction over the controversy.

Bell Wins Canada Class Action Lawsuit Over Prepaid Cells

cellphoneThis week, Ontario's top court gave Bell Mobility, who manages prepaid cellular accounts for Virgin Mobile Canada and Solo Mobile, a win in a certified class action lawsuit brought by consumers who said that the company had improperly applied expiration dates to their accounts.

Oklahoma Supreme Court: Unclaimed Property Not a Ponzi Scheme

Court Order
In June 2015, Jerry Fent, a local activist attorney, filed a lawsuit against the State of Oklahoma, saying that the unclaimed property program was a Ponzi scheme since the state regularly used the unclaimed money to fund other portions of the state's budget.