Now that Delaware's rewrite of its escheats laws is enshrined in Delaware law, holders will soon be faced with making some important decisions about audits and the VDA program. Our Unclaimed Property Group takes stock of what it means for holders going forward. Read the full advisory here. [...]Read more
Exactly two weeks after introduction, Delaware’s major unclaimed property overhaul bill – SB 13 – passed both the Senate and the House of Delaware’s General Assembly on January 26. The bill is now on the desk of newly inaugurated Governor Carney and is awaiting signature. We have previously addressed some of the significant features of SB 13 here. To summarize, SB 13 represents a complete rewrite of the Delaware Escheats Law in reaction to the Temple-Inland decision and other recent unclaimed property developments. Although SB 13 is inspired by and based in part on the new 2016 [...]Read more
Our Unclaimed Property Group explores legislation introduced in the state Senate that if enacted, would prompt a sea change in Delaware law governing abandoned and unclaimed property.
On August 16, 2016, the U.S. District Court for the District of Delaware granted Kelmar’s and Delaware’s motions to dismiss in Plains All American Pipeline, L.P., v. Cook, et al. The court determined that the Plaintiff (1) lacked standing to sue Kelmar, (2) had not demonstrated ripeness of declaratory relief against Delaware for any of its claims, except equal protection, and (3) failed to state a cause of action regarding its equal protection claim. Background In 2014, Delaware, through its third-party auditor, Kelmar, initiated an unclaimed property audit of Plains All American [...]Read more
In March, we issued an advisory highlighting a lawsuit filed by the Pennsylvania Treasury Department against the State of Delaware in federal district court seeking to recover uncashed official checks escheated to Delaware by MoneyGram. (http://www.alston.com/advisories/money-gram/). Essentially, the dispute centers upon whether MoneyGram's official checks were subject to the Federal Disposition Act, in which case they would have been reportable to the state(s) in which they were issued rather than Delaware, the state of MoneyGram's domicile. In our prior advisory, we pointed out that [...]Read more
On July 22, 2015, Delaware Governor Jack Markell signed into law a significant piece of unclaimed property reform legislation, S.B. 141. Alston & Bird issued an advisory on June 23 analyzing the changes brought about by the bill. Our advisory is available here: www.alston.com/advisories/serious-property-reform. To summarize, S.B. 141 will do the following: Make permanent the Secretary of State's voluntary disclosure program. Require the Department of Finance to provide holders with the opportunity to enter into the Secretary of State's VDA program before being subjected to [...]Read more