Delaware v. Pennsylvania and Wisconsin
Issues
Which states have jurisdiction over funds from unclaimed financial instruments under the Federal Disposition of Abandoned Money Orders and Traveler’s Checks Act, and are MoneyGram Official Checks subject to that Act?
This case asks the Supreme Court to define MoneyGram’s Official Checks (“Official Checks”) to determine which states have jurisdiction over funds from unclaimed Official Checks, and then to clarify which abandoned financial instruments are subject to the Federal Disposition of Abandoned Money Orders and Traveler’s Checks Act (“FDA”). The FDA sets the standards for the remittance of funds payable on unclaimed financial instruments. Petitioner Delaware argues that Official Checks are “third party bank checks,” not “money orders,” “traveler’s checks,” or “other similar written instruments” and are therefore not subject to the FDA. Respondents Pennsylvania and Wisconsin counter that Official Checks are subject to the FDA as either “money orders” or “other similar written instruments.” The outcome of this case has implications for the state receipt of funds from unpaid financial instruments, the role of the Court in interpreting legislation, and the direction of future litigation regarding the recovery of funds.
Questions as Framed for the Court by the Parties
(1) Whether MoneyGram Official Checks are “a money order, traveler’s check, or other similar written instrument (other than a third party bank check) on which a banking or financial organization or a business association is directly liable,” pursuant to 12 U.S.C. § 2503; (2) whether the court should command Wisconsin and Pennsylvania not to assert any claim over abandoned and unclaimed property related to MoneyGram Official Checks; and (3) whether all future sums payable on abandoned MoneyGram Official Checks should be remitted to Delaware.
MoneyGram Payment Systems, Inc. (“MoneyGram”) sells financial instruments through which its customers can transfer their funds. Exceptions to Report of the Special Master, Delaware at 2, 9.
Additional Resources
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Wilson Barmeyer & Phillip Stano, Tables Turned: 21 States Tell Delaware to “Fork Over Our Unclaimed Property!”, JD Supra (June 16, 2016).
- Maria Koklanaris, States MoneyGram Feud Could Clarify Unclaimed Property Law, Law360 (Feb. 24, 2022).