In the first ruling written by President Joe Biden's appointee Justice Ketanji Brown Jackson, the U.S. Supreme Court on Tuesday sided with 30 states that argued that Delaware had no right keep hundreds of millions of dollars in uncashed MoneyGram checks for itself.
In the ruling, Jackson wrote that generally a state under its power called "escheatment" can take possession of abandoned property if it is located within the state.
Under that law, money orders that go uncashed can be generally taken by the state in which they are purchased. From 2002 to 2017, Delaware took possession of $250 million in uncashed MoneyGram checks that were bought around the country, even though only $1 million was bought in Delaware itself, Jackson noted.
But the arbiter, U.S. Circuit Judge Pierre Leval, later agreed with Delaware's view that they were not legally money orders but were "third-party bank checks."
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