Unclaimed Property and Corporate Compliance News

Utah Court Rules Against Judgment Creditor Claimant

After holders report unclaimed property to the states, it becomes the states' responsibility to return the property to the rightful owner. Each state has a process by which the owners or their heirs can come forward to make a claim. If you don't follow these rules, the likelihood of recovery is near zero. A case out of Utah reaffirms that claimants must follow the statutory and regulatory process set out by the unclaimed property law to claim money from the state administrators.

Did Court Create Chaos With Marathon Dismissal?

Court OrderMarathon Oil has been the subject of a nine year audit by Delaware and it's third-party auditor, Kelmar Associates. Earlier this year, they filed lawsuit to stop overbroad and burdensome requests relating to the inquiry into its gift card program and entities not incorporated in Delaware.

Federal Court Dismisses Plains All-American Lawsuit

Court OrderThis week, a federal court judge dismissed the Plains All-American Pipeline LP v. Cook lawsuit, saying that the case was not ripe for judicial relief.

Can Delaware Even Enforce A Summons?

Important questions on the limits of state power in unclaimed property audits are currently under litigation. Specifically, what are the permissible limits of state authority in conducting an unclaimed property examination and assessing liability against a corporate holder? Last month, a federal court judge in Temple-Inland said that Delaware's estimation and assessment of liability "shock the conscience" and are unconstitutional.

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.

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