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Delaware v. Pennsylvania and Wisconsin

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Supreme Court of the United States
Delaware v. Pennsylvania and Wisconsin
Term: 2022
Important Dates
Argued: October 3, 2022
Decided: February 28, 2023
Outcome
remanded
Vote
9-0
Majority
Ketanji Brown Jackson • Chief Justice John Roberts • Clarence Thomas • Samuel Alito • Sonia Sotomayor • Elena Kagan • Neil Gorsuch • Brett Kavanaugh • Amy Coney Barrett

Delaware v. Pennsylvania and Wisconsin is a case that was decided by the Supreme Court of the United States on February 28, 2023, during the court's October 2022-2023 term. The case was argued before the court on October 3, 2022. It was consolidated with Arkansas v. Delaware. The court remanded the decision to the Special Master in a 9-0 ruling. Overuling Delaware’s objections, the court held that the recommendations in the Special Master’s First Interim Report concluding that the transfer of certain unclaimed financial resources relevant to this case should follow the Federal Disposition Act are adopted to the extent they are consistent with the Supreme Court's opinion, and Delaware’s objections are overruled. Justice Ketanji Brown Jackson delivered the majority opinion of the court.[1] [2] Click here for more information about the ruling.


HIGHLIGHTS
  • The case: Several states sued Delaware in U.S. District Court, disputing Delaware's acquisition of unclaimed funds from MoneyGram official checks. Delaware moved for the U.S. Supreme Court to review the cases as part of its original jurisdiction. Click here to learn more about the cases' background details.
  • The issues: The cases concerned the Disposition of Abandoned Money Orders and Traveler’s Checks Act and the sovereign power of States.
  • The questions presented: Are MoneyGram's official checks subject to the Disposition of Abandoned Money Orders and Traveler’s Checks Act?
  • The outcome: The court remanded the decision to the Special Master in a 9-0 ruling.


    • The cases came under the court's original jurisdiction.

    Timeline

    The following timeline details key events in these cases:

    • October 3, 2022: The U.S. Supreme Court heard oral argument.
    • February 22, 2022: The U.S. Supreme Court agreed to hear the cases.
    • November 18, 2021: Delaware submitted exceptions to the special master's report.
    • October 4, 2021: The special master filed a report.
    • March 29, 2017: The U.S. Supreme Court appointed a special master to oversee the cases.
    • May 26, 2016: Delaware filed a motion asking the U.S. Supreme Court to hear the cases as part of its original jurisdiction.
    • April 27, 2016: Wisconsin filed a lawsuit against Delaware in the Western District of Wisconsin.
    • February 26, 2016: Pennsylvania filed a lawsuit against Delaware in the Middle District of Pennsylvania.[3][4]

    Background

    MoneyGram Payment Systems is incorporated in Delaware but its principal place of business is in Texas. MoneyGram sells what it markets as "official checks," which a customer could purchase at a MoneyGram location by paying a transaction fee as well as the value of the official check. In cases where official checks are never presented for payment, MoneyGram never releases the funds. This results in MoneyGram amassing a large amount of money it does not own.[3]

    As of 2016, MoneyGram escheated this money to Delaware, based on the belief that the Disposition of Abandoned Money Orders and Traveler’s Checks Act did not apply to official checks.[3]

    Pennsylvania and Wisconsin sued Delaware in the U.S. District Court for the Middle District of Pennsylvania and the U.S. District Court for the Western District of Wisconsin, respectively, arguing that MoneyGram's official checks are subject to the Act. Delaware moved to dismiss both cases in the District Courts, arguing that the cases should be heard exclusively by the Supreme Court of the United States as part of that court's original jurisdiction.[3]

    Disposition of Abandoned Money Orders and Traveler’s Checks Act

    Congress adopted the Disposition of Abandoned Money Orders and Traveler’s Checks Act, 12 U.S.C. §§ 2501-2503, in 1974. The act specified that:[3]

    “ for 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,” the State in which such an instrument was purchased has the exclusive right to escheat or take custody of sums payable on such instruments. 12 U.S.C. § 2503. If the State in which such instruments were purchased is not known, then unclaimed property associated with such instruments escheats to the State in which the banking or financial organization or business association has its principal place of business.[5] ”

    Questions presented

    The petitioner presented the following questions to the court:[6]

    Questions presented:

    EXCEPTIONS TO REPORT OF THE SPECIAL MASTER
    Plaintiff State of Delaware respectfully submits the following exceptions to the First Interim Report of the Special Master issued on July 23, 2021:

    1. Delaware takes exception to, and this Court should decline to adopt, the Special Master’s report and recommendation to deny Delaware’s request for partial summary judgment and to grant Defendants’ request for partial summary judgment.
    2. Delaware takes exception to, and this Court should decline to adopt, the components of the Special Master’s report and recommendation, including:
    a. The Special Master’s definition of “money order”;
    b. The Special Master’s definition of “third party bank check”;
    c. The Special Master’s definition of “other similar written instrument”;
    d. The other flaws discussed in the accompanying brief, which addresses these exceptions (and related errors) more fully.

    Oral argument

    Audio

    Audio of oral argument:[7]



    Transcript

    Transcript of oral argument:[8]

    Outcome

    The court remanded the decision to the Special Master in a 9-0 ruling. Overuling Delaware’s objections, the court held that the recommendations in the Special Master’s First Interim Report concluding that the transfer of certain unclaimed financial resources relevant to this case should follow the Federal Disposition Act are adopted to the extent they are consistent with the Supreme Court's opinion, and Delaware’s objections are overruled. Justice Ketanji Brown Jackson delivered the majority opinion of the court.[1][2]

    October term 2022-2023

    See also: Supreme Court cases, October term 2022-2023

    The Supreme Court began hearing cases for the term on October 3, 2022. The court's yearly term begins on the first Monday in October and lasts until the first Monday in October the following year. The court generally releases the majority of its decisions in mid-June.[9]


    See also

    External links

    Footnotes

    1. ↑ 1.0 1.1 Court of the United States, Delaware v. Pennsylvania and Wisconsin, "On Exceptions to Reports of Special Master," accessed February 28, 2023
    2. ↑ 2.0 2.1 SCOTUSblog, Delaware v. Pennsylvania and Wisconsin, accessed February 28, 2023
    3. ↑ 3.0 3.1 3.2 3.3 3.4 Supreme Court of the United States, Delaware v. Pennsylvania and Wisconsin, "Motion for leave to file a bill of complaint," accessed July 16, 2022
    4. ↑ Scotusblog, "Delaware v. Pennsylvania and Wisconsin," accessed July 16, 2022
    5. ↑ Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
    6. ↑ Supreme Court of the United States, Delaware v. Pennsylvania and Wisconsin, "Questions presented," accessed July 16, 2022
    7. ↑ Supreme Court of the United States, "Oral Argument - Audio, Delaware v. Pennsylvania and Wisconsin," argued October 3, 2022
    8. ↑ Supreme Court of the United States, "Oral Argument - Transcript," argued October 3, 2022
    9. ↑ SupremeCourt.gov, "The Supreme Court at Work: The Term and Caseload," accessed January 24, 2022
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