Opinion ID: 3065051
Heading Depth: 3
Heading Rank: 3

Heading: Retroactive “Restitution”

Text: [7] Plaintiffs also argue that the district court erred in denying their claim for retroactive “restitution” in the amount of the difference between the proceeds of the sale of their unclaimed property and the current market value. In other words, they claim that they are entitled to recover the “value” of non-cash property taken into the Controller’s possession without regard to the actual sums the Controller obtained upon liquidating it. As previously explained, however, Plaintiffs are not entitled to more than the actual property that the State took into its possession or the proceeds of that property. See Taylor I, 402 F.3d at 932. Rather, such claims for additional compensation, whether described as “restitution” or otherwise, are indistinguishable in effect from claims for money damages against the State and, as such, are barred by the Eleventh Amendment. Id. at 935. [8] Nor can Plaintiffs justify their claim for “restitution” on the basis that they seek only private money, not state funds. First, contrary to Plaintiffs’ arguments, there is not $5.3 billion worth of private money in the Unclaimed Property Fund. As required by state law, the Controller transfers funds in excess of $50,000 to the General Fund every month. CAL. CIV. PROC. CODE § 1564(c). Second, even if there were $5.3 billion in the Unclaimed Property Fund, the Controller could not lawfully use it to pay Plaintiffs the difference between the proceeds of the sale of their escheated property and what they claim that property is worth now; to do so, the Controller would by definition have to use money belonging to other owners of unclaimed property. For these reasons, the district 11854 SUEVER v. CONNELL court properly held that Plaintiffs are not entitled to recover anything beyond the actual cash proceeds that the Controller realized upon liquidating their non-cash escheated property.