Document: 407 U.S. 206 92 S.Ct. 2075 32 L.Ed.2d 693 Commonwealth of PENNSYLVANIA, Plaintiff,v.State NEW YORK et al. No. 40, Orig. Argued March 29, 1972 on Exceptions to Report Special Master. Decided June 19, 1972. Decree Published See 2880. Syllabus Pennsylvania brought this original action against New York determine the authority States escheat, or take custody of, unclaimed funds paid Western Union Telegraph Co. for purchase money orders. The Master, following Texas v. Jersey, 379 674, 85 626, 13 596, recommended that any sum held by time period prescribed state statute may be escheated taken into State in which company's records placed creditor's address, whether creditor payee an unpaid draft, sender a order entitled refund, individual whose claim has been erroneously underpaid; and where show no address falls applicable escheat law, right shall debtor's domiciliary State, here York. decree is adopted entered, cause remanded Master proposed supplemental with respect distribution costs inquiry as available addresses. Pp. 208 216. Hermann Rosenberger II, Philadelphia, Pa., plaintiff. F. Michael Ahern, Asst. Atty. Gen., Hartford, Conn., intervenor plaintiff Conn. Winifred L. Wentworth, Tallahassee, Fla., defendant Fla. Julius Greenfield, City, Mr. Justice BRENNAN delivered opinion Court. 1 other except to, supports,1 filed determination respecting several Company orders.2 We overrule exceptions enter see 223, 2880.3 2 nature Union's business, source dispute, were described Court Pennsylvania, 368 71, 82 199, 7 139 (1961): 3 'Western corporation chartered under law its principal place business State. It also does offices all Alaska Hawaii (as well as) District Columbia, foreign countries, was from 1916 1934 subject regulation I.C.C. since then F.C.C. In addition sending telegraphic messages throughout world-wide system, it carries commonly works like this. A goes office, fills out application gives company clerk who waits him together sent charges it. receipt given telegraph message transmitted office nearest directing pay payee. notified upon properly identifying himself negotiable he can either endorse cash at once keep use future. If cannot located delivery notice, fails call draft within 72 hours, destination notifies office. This failure deliver makes payments payees, way cashed immediately kept 4 'In thousands transactions carried company, sometimes happens neither make payment nor refund sender. Similarly payees senders accept drafts fail them. For reason large sums due undelivered orders accumulate over years bank accounts country.' Id., 72—73, S.Ct., 200. 5 1953 began proceedings statute4 those funds, Union, arose purchases offices. Supreme affirmed judgment about $40,000, Gottlieb 400 Pa. 337, 162 A.2d 617 (1960), but reversed, supra, holding court denied process because could not protect rival claims States. noted controversies among different their intangibles settled only forum 'where want do so present consideration final authoritative determination. Our jurisdiction that.' U.S., 79, 203. 6 Thereafter, 596 (1965), asked decide intangible property consisting debts owed Sun Oil left creditors. Four rules proposed. argued should go having most significant 'contacts' debt, measured number factors; they debtor incorporation; had business; Florida, last known shown books records. rejected Texas' Pennsylvania's proposals being too uncertain difficult administer, Jersey's 'it would greatly exalt minor factor permit obligations incurred country happened incorporate itself.' 680, 630. Florida's proposal, hand, regarded 'simple easy' standard follow, one tended 'to distribute escheats proportion commercial activities residents.' 681, therefore him, adding if his appear provide intangibles, incorporation 'until some comes forward proof superior escheat.' 682, 631. concluded: 'We realize case have resolved otherwise, issue controlled statutory constitutional provisions past decisions, entirely logic. fundamentally question ease administration equity. believe rule we adopt fairest, easy apply, long run will generally acceptable States.' 683, 8 On 13, 1970, renew efforts part proceeds. complaint alleged accumulated more than $1,500,000 'on account purchased before December 31, 1962,' $100,000 amount, 'held Pennsylvania,' resolving conflicting States, temporary injunction taking them pending disposition case.5 9 arguments parties suggested three formulas resolve claims. contended identify anyone 'creditor' many instances list payee; therefore, strict Jersey type result almost incorporation, To avoid result, permitted funds. claimed are bought presumed sender's residence. Connecticut, California, Indiana supported did amicus curiae. 10 Florida Arizona received order, known, regardless address. 11 strictly applied, retroactive. Thus, between 1930 1958 (seven decision)6 asserted address.7 As drawn after 1958, apply rule, cases providing escheat. 12 submitted report recommending 'be applied items involved date arose.' 21. expresses doubt constitutionality alternatives, stating both place-of-purchase place-of-destination might rights 'cut off adversely affected rem proceeding continuing relationship proceedings.' 19. These doubts, however, sole basis Master's recommendation. He found '(a)s (Texas Jersey), (the Texas) presents easily administered preventing multiple giving fixed rely.' 20. concluded that: 'Any now statutes creditor, underpaid through error. . (I)f contained debtor, case, York.' 20—21. 14 states bear burden establishing 'as escheatable absence creditor.' 16. 15 argue transaction 'the obligor entries showing obligee,' origin transaction' abandoned state-of-destination test, participating save York, joined exceptions. Tr. Oral Arg. 20, 42. 16 proposal surface appeal. Because regularly record addresses creditors, likely corporate domicile receive much larger share obligations, bills services rendered, such matter practice. sense, there inconsistency our refusal primary recipient intangibles. Furthermore, say, nothing legal presumption residence based equally valid, argue, prevent gaining windfall. 17 Assuming, without doubts expressed provides regard likelihood 'windfall' sufficient carving exception rule. grounded assumption creditors' known. Indeed, four eight classes debt expressly creditors 'had indicated.' 675—676, n. 4, 627—628, 596. arguable distinguishing involve higher percentage unknown But told what high enough justify clear constitute form high. words, vary according adequacy require precisely said avoided—that is, each particular facts devise new ever-developing categories facts.' 679, 629. 18 substantial fact case. Although ledger addresses, stipulated, found, applications retained far back 1941.' 9. extent forms, will, course, diminished. 19 think fairness claimant cost finding recording remand hearing recommendation appropriate formula distributing costs. future transactions, say prohibits requiring adequate entered,8 further filing 20 ordered. 21 Recommended remanded. 22 POWELL, whom BLACKMUN REHNQUIST join, dissenting. 23 majority today purports laid down situation contemplated when decided. applying these facts, seems me exalts derogates reasons supporting 24 * decided Court's jurisdiction, unique precedent. Disposition necessarily required departure usual mode decisionmaking. role country's scheme government ordinarily restricted one, limited measure resolution conflicts calling interpretation acts Federal Constitution. performance function, Justice's views consider 'fair' 'equitable' 'expeditious' largely immaterial. Infrequently, called disputes arising (Art. III, § 2) unaided directives. 25 approaching cases, find, expeditiousness guideposts decision: 26 '(T)he equity.' 27 us requires similar principles, I agree Black's points desirable result. my view, majority's precedent offends 'fairness' 'ease administration' bases opinion. 28 title personal After rejecting alternatives offered parties, approved Under power question, first instance, accorded records.' 680—681, 'infrequent' State's laws domicile. 29 itself reasons. consistent common-law maxim 'mobilia sequuntur personam'* follow owner—here creditor. 10, looking recognized Company's assets rather debtor. Also, advantage dividing manner roughly proportionate residents. using last-known indicator domicile, administer apply. recognized, approach lead removed arose. Yet 'tend cancel out,' disrupt basic 30 Paradoxically, mechanistic leads ultimately defeat beneficial justifications Unlike numerous Oil, reflect relatively small transactions. consequence, greater portion entire fund York—the Effectively then, obligation converted asset exclusion specifically repudiated ground inconsistent 'principles fairness.' 'exalt(ed) Ibid. willing few governed, diminish view impermissible disposing minority debts. decision ignores unwillingness 'exalt' coincidental disregards clearly intent distributed proportions comparable volume conducted 31 incompatible inexpensively discernible allocation utilized. examination every applicant filled blank own cashed, holder's preserved. estimated stipulated statement item-by-item undertaken approximately $175,000. sum, invocation expeditious equitable. II 33 underlying best effectuated logical deviation implemented Rather embarking potentially fruitless search rough reliance debtor-creditor established. site returned initiating sendee failed money, purchaser-creditor's And, party negotiated, issued assumed 34 modification preferable, first, preserves equitable foundation 'windfall'; divided approximating occurring State; integrity notion amounts represent purchasers recipients maintained. Secondly, relevant information obtainable. reflected would, unnecessary examine innumerable forms themselves. Since ledgers readily available, effected less expense resolution. 35 Despite advantages, alternative. reasoned undetermined must outside Specifically, cited Connecticut resident Virginia Maryland Columbia. 18. While certainly exist, merely reliable occurred purchaser's That perfection achieved reject absolute obtainable expected reasonable approximation. 681 11, 630, Certainly objection allowed frustrate better alternative favor fair administer. III 36 intimates, must, ultimate consequence (ante, 214) Jersey. appears recognize reap very sought avoid, bend face unexplained. Apparently, conviction prior designed settle 'once all.' 678, adheres existing apprehension flexibility deprive satisfactory test cases. anticipates leave ad hoc basis, depending 'adequacy Ante, 215. factual circumstances predicted, principles range limited. maintain ordinary course business. involving traveler's checks, available. debts, Moreover, out, free corporations doing 37 short, threat frequent complicated area remote. little justification Cinderella-like compulsion accommodate ill-fitting precedential "slipper." From inflexible inequitable, dissent. Of remaining defendant, intervening plaintiffs. brief curiae support position. granted file bill complaint, 398 956, 90 2161, 540, intervene plaintiff, appointed John Davis evidence reports. 811, 91 30, 39. California plaintiffs, defendant. 924, 182, 183; 1019, 579, 631; 401 931, 914, 211. typographical error sustained. phrase 'escheat custodial taking' paragraph 2, lines 4—5 read taking.' statute, Act July 1953, P.L. 986, (Pa.Stat.Ann., Tit. 27, 333) part: '(b) Whensoever person control whereabouts remain seven successive years, .. '(c) ..' plea injunction, accepts unnecessary.' 2. 1930. Section 1309 York's Abandoned Property Law, 1/2 McKinney's Consol.Laws, c. 1, 1309, taking, uncashed orders, holder wise affected, impaired enlarged section comptroller hereunder.' Insofar provision Revised Uniform Unclaimed decree, prevails. North Carolina Board Education Swann, 402 43, 45—46, 1284, 1285—1286, 586 (1971). Blodgett Silberman, 277 9—10, 48 410, 413—414, L.Ed. 749 (1928).

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