Delaware v. Pennsylvania and Wisconsin
Petitioner State of Delaware · Respondent Commonwealth of Pennsylvania and State of Wisconsin
- How it got here
- original jurisdiction
Are unclaimed MoneyGram checks “money orders” or “similar written instruments” and thus subject to a federal law that remits them to the states where they were purchased?
Question before the CourtWhat happened
MoneyGram Payments Systems, which is headquartered in Delaware, returns unclaimed checks to that state. Pennsylvania and Wisconsin argue that the checks are “money orders” or “similar written instruments,” which federal law requires to go to the states where they were purchased. Invoking the U.S. Supreme Court’s jurisdiction over interstate disputes, Delaware filed the case directly in the Supreme Court. The Court appointed a special master, who concluded that MoneyGram’s checks are “money orders” or “similar written instruments” and thus should go to the states where they were purchased. Delaware asked the Court to review the Special Master’s findings for error.
Unanimous.
All nine justices agreed on the outcome. Concurrences may differ on reasoning, but the Court spoke with one voice on the judgment.
The opinions 1
Ketanji Brown Jackson
Joined by Roberts, Thomas, Alito, Sotomayor, Kagan, Gorsuch, Kavanaugh, and Barrett.
The holding
Unclaimed MoneyGram checks are “money orders” or “similar written instruments” and thus subject to the Federal Disposition Act, which remits them to the states where they were purchased. Justice Ketanji Brown Jackson authored the opinion of the Court, which was unanimous as to its conclusion (but only 5-4 as to the discussion of legislative history supporting that conclusion). The unclaimed checks at issue in this case are sufficiently similar to “money orders” to fall within the Federal Disposition Act (FDA) for two main reasons. First, they are similar in function in operation because they are prepaid financial instruments used to transmit a specified amount of money to a named payee. Second, because of the recordkeeping practices of the entity issuing and holding on to the prepaid funds, it would be inequitable for unclaimed checks to go to the state where the creditor is incorporated, as common law would require. For these reasons, the FDA, not the common law, applies to unclaimed MoneyGram checks.
Argued by
- Neal Kumar Katyal for Delaware
- Nicholas J. Bronni for Arkansas et al.
Case path
- Feb 22, 2022 exceptions to special master report - set for oral argument
- Oct 3, 2022 argued
- Feb 28, 2023 decided
