MoneyGram Unclaimed Property: Awaiting the Supreme Court Decision
Here we are again, anticipating the U.S. Supreme Court’s decision in another unclaimed property case. It has been a few decades since we last awaited the Court’s decision in Delaware vs New York, the last in the trilogy of landmark cases that reaffirmed the rules governing which state has jurisdiction/priority over unclaimed funds.
Still, the tension now is just as palpable as it was then. The parties are the same – – Delaware and other states. In these consolidated cases, currently before the Court, referred to as the MoneyGram case, we have Delaware vs. Pennsylvania and other states versus Delaware.
Central Issue: Priority Over MoneyGram Official Checks
This time, the central issue revolves around official checks issued by MoneyGram, but the basic question remains – which state has priority over these funds? The ultimate forum is yet again the U.S. Supreme Court, and the key person making a recommendation to the Court – – you guessed it – – is once again a Special Master appointed by the Court.
Recent Developments: Special Master’s Recommendations
In 2021, the Special Master issued an interim report, essentially recommending full victory to the states. In response, Delaware filed objections asking the Court to reject the Special Master’s recommendations, to which the Court agreed to hear oral arguments on the objections raised by Delaware.
Oral Argument and Revised Recommendations
The full court heard oral arguments on October 3, 2022, and seems to have swayed the Special Master, who issued an order revising his earlier recommendations to the Court on October 26, 2022. The revised order is poised to provide some relief to Delaware for property identified as “tellers checks.”
Funds associated with these checks, for which no owner information is maintained by MoneyGram, are determined to be reportable to Delaware. The remaining two property types identified as “agent checks” or “agent money orders” will fall within the jurisdiction and benefit of the states where the checks were procured.
What Lies Ahead: Supreme Court’s Decision
In Delaware vs. New York, just a few decades ago, we saw the Court rejecting the recommendations of the Special Master and reaffirming its existing precedent in two earlier decisions. So, the key question that remains is – – What will the high Court do? Will it accept the Special Master’s revised recommendation granting some relief to Delaware, reject Delaware’s arguments outright, granting relief and jurisdiction to the other states, or carve its own path in its ultimate decision?
Stay tuned as we continue to watch for the final resolution of this important case.
For more information about MoneyGram Unclaimed Property and this case and any other unclaimed property issues contact Sonia Walwyn at [email protected].