Joshua Voss, a partner in Kleinbard’s Litigation Department, was quoted in Law 360 on a recent victory for the Pennsylvania Treasury in a fight to reclaim more than $10 million of unclaimed property which the Treasury Department argued was wrongly taken by Delaware.
Originally filed by Pennsylvania in February 2016, and subsequently joined by 29 other states, the dispute revolves around “official checks,” a form of money order payment, issued by MoneyGram Payment Systems, Inc., to customers who purchased them in Pennsylvania and never cashed them. The Pennsylvania Treasury maintained that Delaware violated the Disposition of Abandoned Money Order and Traveler’s Checks Act (The Act) by collecting funds from the abandoned checks. After several years, Judge Pierre N. Leval, whom the justices had appointed special master for the case, ruled that the abandon checks are money orders and that federal law would control to which state the property would escheat.
“This is a vindication of the position that the Pennsylvania Treasury has been advocating for six years,” said Joshua. “These proceeds should have never been escheated to Delaware. We’re quite confident that is going to hold up.”
Joshua was a member of the team representing the Pennsylvania Treasury, which included Matt Haverstick and Lorena Ahumada of Kleinbard’s Litigation Department, and the Pennsylvania Treasury’s Office of Chief Counsel.