Cerajeski v. Zoeller

Federal 7th Circuit Court
Civil Court
Indiana Unclaimed Property Act
Case Number: 
No. 12-3766
Decision Date: 
October 31, 2013
Federal District: 
S.D. Ind., Indianapolis Div.
Reversed and remanded
Dist. Ct. erred in dismissing plaintiff’s action challenging constitutionality of portions of Indiana Unclaimed Property Act that allowed state to retain interest earned by unclaimed bank account when plaintiff, as owner of bank account, attempted to reclaim said bank account. Statute’s provisions, which allowed for confiscation of interest by State after three-year period, is tantamount to unconstitutional confiscation within meaning of takings clause since: (1) plaintiff did not voluntarily relinquish either principal or interest in subject bank account; and (2) State of Indiana could not transfer plaintiff’s private property into public property without compensation merely because it had held said property temporarily as custodian for period of three years.