Page:Delaware v. Pennsylvania (2023).pdf/12

8 Agent Checks and Teller’s Checks (collectively, the Disputed Instruments) as governed by the common law instead of the FDA. Because MoneyGram does not keep records of creditor addresses for these products, MoneyGram applies the secondary rule of Texas and gives the abandoned proceeds of those particular instruments to its State of incorporation, Delaware.

After an audit of MoneyGram’s escheatment policies, Pennsylvania and Wisconsin filed separate lawsuits challenging Delaware’s escheatment of the abandoned proceeds of Agent Checks and Teller’s Checks. Invoking this Court’s original jurisdiction to decide controversies between States, Delaware moved to file a bill of complaint against Pennsylvania and Wisconsin. Arkansas, acting on behalf of itself and several other States, filed a separate motion for leave to file a bill of complaint. We consolidated the actions and appointed a Special Master.

The Special Master bifurcated the proceedings into liability and damages phases. The first phase (to which the current dispute pertains) focuses solely on which State or States have priority to take custody of the proceeds from MoneyGram Agent Checks and Teller’s Checks upon abandonment. At the second phase, the Special Master will analyze any damages. The parties filed cross-motions for summary judgment on the issue of liability.

In July 2021, the Special Master issued a First Interim Report that concluded that the Disputed Instruments were covered by the FDA. Delaware filed exceptions to that report. Then, after we had considered the parties’ briefs and held oral argument, the Special Master announced that our proceedings had caused him to reassess his conclusions. He subsequently issued a Second Interim Report that concluded that many of the Disputed Instruments were or could be “third party bank checks” and would thereby be