A case challenging Delaware’s process for seizing unclaimed property survives early dismissal.
Legal reps for managers of Delaware’s escheat funds argue the heirs of Rene Borquez lack standing to sue for property the state seized and liquidated.
A complaint filed in 2024 says “sometime after Borquez’s passing” managers of his estate realized “many shares” he purchased were escheated in Delaware. It argues the state’s Escheator, Assistant Director of Enforcement of the Office of Unclaimed Property, and Secretary of Finance “grossly misapplied” the state’s Unclaimed Property Law to seize and liquidate that portion of Borquez’s estate.
The state paid $2.6 million to compensate Borquez’s heirs, but their complaint argues it would take another $11 million to make them whole.
Delaware’s escheat managers argue Borquez’s estate managers knew or should have known about the estate, and the state followed its guidelines for informing of unclaimed property.
But federal District Court Judge Maryellen Nor-eye-ha eika “wasn’t convinced,” and says the case will move forward with fact-finding.
More than 6% of Delaware’s budget comes from Delaware’s ability to cash out on unclaimed property, or escheat. And the case continues as Gov. Matt Meyer’s budget plans to move more escheat dollars to the state’s general fund. SOC
