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Kelmar

Pushing Beyond the Limit: Examining the Scope of Subpoenas Issued During Unclaimed Property Audits

July 28, 2020 By Josh Labat, Matt Hedstrom, Kendall Houghton, Michael Giovannini, Kathleen Cornett, Maryann Luongo and Ethan Millar

A Delaware court quashed a subpoena aimed at an unclaimed property holder, but the victory may be short-lived. Our Unclaimed Property Team explores the latest court decision addressing a subpoena for records dating back to the 1990s. The subpoena asked for every check issued from 27 accounts over 20 years, including cleared and voided checks and checks issued to payees in other statesThe court found the subpoena too expansive and unreasonableThe third-party auditor’s incentives and motives were called into question Read the full advisory here. [...]Read more

Filed Under: Unclaimed Property Advisory Tagged With: AT&T, Delaware, Delaware Court of Chancery, Kelmar, Section 1172(c), State of Escheator, subpoena, Univar

Univar, Chapter Two: Only a Pair of Constitutional Claims Survive Dismissal (For Now)

September 20, 2019 By Alston & Bird Tax Team

Our Unclaimed Property Team breaks down the many individual issues at stake in the continuing epic of Univar’s struggle against Delaware and its use of a third-party auditor, and how the courts are deciding in light of earlier Third Circuit rulings.

The procedural due process and equal protection claims survive
The other claims were dismissed, but could be revived later
The next chapter will be set (again) in chancery court

Read the full advisory here. [...]Read more

Filed Under: Unclaimed Property Advisory Tagged With: Delaware, Kelmar, Marathon Petroleum Corp., Third Circuit, Unclaimed property, Univar

Delaware’s Escheats Law Is Back in Court

December 10, 2018 By Charles Wakefield and Kathleen Cornett

Our Unclaimed Property Group examines the latest challenge to Delaware’s Escheats Law, regulations, and audit practices.

Lawsuit in response to state subpoena of holder’s records
Substantive challenge to audit practices even after recent Escheats Law amendments
Comparison to Plains All American Pipeline and Temple-Inland

Read the full advisory here. [...]Read more

Filed Under: Unclaimed Property Advisory Tagged With: Delaware Escheat Law, District Court of Delaware, Due Process, Equal Protection, Ex Post Fato, federal common law, Fourth Amendment, Kelmar, perceived profitability, Takings Clause, Univar Inc

Third Circuit Continues the Marathon Battle Over Delaware’s Escheat Law

December 11, 2017 By Andrew Yates and Kathleen Cornett

Delaware’s unclaimed property law continues to face challenges in federal court. Our Unclaimed Property Group runs through the latest twist in the ongoing Marathon v. Cook saga at the Third Circuit.

Federal common law rule
Ripeness of the challenge
A dim view of Delaware’s aggressive audits

Read the full advisory here. [...]Read more

Filed Under: Unclaimed Property Advisory Tagged With: Delaware's Audit, Delaware's Escheat Law, et al. v. Cook, Federal Common Law Rules, Kelmar, Kelmar Associates, Marathon Petroleum Corp., Private Right of Action, Unclaimed property, unclaimed property statute, US Supreme Court

Plains All American Case Dismissed – Federal Court Determines Holder Must Develop Factual Record Before Challenging Kelmar Unclaimed Property Audit

August 19, 2016 By Michael Giovannini and Alston & Bird Tax Team

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.[1]  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

Filed Under: Unclaimed Property Advisory Tagged With: audit, Delaware, Kelmar, Litigation, Unclaimed property

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