John Light, Individually and on Behalf of All Others Similarly Situated v. The Honorable Colleen C. Davis, State Treasurer of the State of Delaware, and Brenda Mayrack, Esquire, State Escheator and Director, Office of Unclaimed Property

CourtDistrict Court, D. Delaware
DecidedMarch 18, 2026
Docket1:25-cv-00705
StatusUnknown

This text of John Light, Individually and on Behalf of All Others Similarly Situated v. The Honorable Colleen C. Davis, State Treasurer of the State of Delaware, and Brenda Mayrack, Esquire, State Escheator and Director, Office of Unclaimed Property (John Light, Individually and on Behalf of All Others Similarly Situated v. The Honorable Colleen C. Davis, State Treasurer of the State of Delaware, and Brenda Mayrack, Esquire, State Escheator and Director, Office of Unclaimed Property) is published on Counsel Stack Legal Research, covering District Court, D. Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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John Light, Individually and on Behalf of All Others Similarly Situated v. The Honorable Colleen C. Davis, State Treasurer of the State of Delaware, and Brenda Mayrack, Esquire, State Escheator and Director, Office of Unclaimed Property, (D. Del. 2026).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF DELAWARE

JOHN LIGHT, Individually and on Behalf of All Others Similarly Situated, Plaintiff, v Civil Action No. 25-705-RGA THE HONORABLE COLLEEN C. DAVIS, State Treasurer of the State of Delaware, and BRENDA MAYRACK, ESQUIRE, State Escheator and Director, Office of Unclaimed Property, Defendants.

MEMORANDUM OPINION Mark C. Rifkin, WOLF HALDENSTEIN ADLER FREEMAN & HERZ LLP, New York, NY; Arthur Susman, LAW OFFICE OF ARTHUR SUSMAN, Chicago IL; Theodore A. Kittila, HALLORAN FARKAS + KITTILA LLP, Wilmington, DE, Attorneys for Plaintiff. Arthur G. Connolly, II]; Max B. Walton; Christina M. Thompson; Lisa R. Hatfield, CONNOLLY GALLAGHER LLP, Wilmington, DE, Attorneys for Defendants.

March \h 2026

AhedGie 3 RICT JUDGE: Before me is Defendants’ motion to dismiss. (D.I. 7). I have considered the parties’ briefing. (D.I. 8, 12, 14, 15, 19, 21, 22, 23 24). For the reasons set forth below, this motion is granted. Dismissal will be without prejudice. I. BACKGROUND Plaintiff brings suit against Defendants Colleen C. Davis, State Treasurer of Delaware, and Brenda Mayrack, Esq., the State Escheator and Director of the Office of Unclaimed Property in the Delaware Department of Finance, in their official capacities. (D.I. 1 at 4] 12-13, 15). Plaintiff, a citizen and resident of Delaware, challenges the constitutionality of the Delaware Unclaimed Property statute, 12 De/. C. § 1130, et seg. (“-DUPL”) under the Fifth and Fourteenth Amendments of the United States Constitution and under Article I, Section 8 of the Delaware Constitution. (/d. at §§ 1, 11). Under the DUPL, property in the state “is ‘presumed abandoned’! if the owner... has not communicated in writing with the holder concerning the property or has not otherwise given an indication of interest in the property within . . . generally five years. Property that is ‘presumed abandoned’ [is] delivered to the State Escheator’s custody.” Ud. at □ 19). “[T]he State Escheator is required to turn over all unclaimed property to the State’s General Fund. Unclaimed property in the State’s General Fund is invested, and thus earns interest, dividends, accruals, earnings, investment returns, and other benefits[.]” (Ud. at § 34). An individual claiming a property interest in “unclaimed property paid or delivered to the State Escheator may file a claim with the State Escheator for return of the property or for the proceeds from the sale of the property.” (D.I. 1 at 37). The owner of the unclaimed property is

| Plaintiff notes, “Property subject to the [DUPL] is referred to interchangeably herein as ‘abandoned property’ or ‘unclaimed property.’” (D.I. 1 at 19). In my recitation of the facts, I will follow Plaintiff's terminology as he uses it.

generally not “entitled to receive interest on account of such property,” although a person “entitled to unclaimed dividend- or interest-bearing securities prior to its conversion to cash is entitled to any dividends or interest that accrues up to the time the claim is paid.” (/d. at J 38, 40). Plaintiff states that the State Escheator held Plaintiffs property in its custody; Plaintiff states that his property was worth “over $50.00 [as] reported by Office Depot Inc.” (Ud. at { 52). Plaintiff filed a claim on or about December 18, 2024 for return of his property and received notice on December 19, 2024 that his claim had been approved. (/d. at J] 53-54). Plaintiff received a check, dated December 19, 2024, of $135, which Plaintiff states “represented the entire principal amount of Plaintiff's unclaimed property in Delaware’s possession.” (Jd. at { 56). Plaintiff claims that the DUPL “effectively provides . . . the State with an interest-free loan of unclaimed private property funds.” (/d. at § 41). Plaintiff therefore received “no payment of just compensation for the entire time during which his private property was held in the State General Fund and used for public purposes.” (/d. at 57). Plaintiff states that he should have been “entitled to receive back from the State [this] so-called ‘time value’ of [his] property . . . or the rate or yield that the State pays for borrowing funds on the open market or from third parties.” (id. at 9 45). Plaintiff seeks declaratory and prospective injunctive relief on the grounds that the DUPL violates the Fifth and Fourteen Amendments of the U.S. Constitution and declaratory and injunctive relief on the grounds that the DUPL violates Article I, Section 8 of the Delaware Constitution. (/d. at [{ 71-80). Among other forms of relief, Plaintiff specifically requests that I issue an injunction “compelling Defendants to pay just compensation to the owners of the property.” (/d. at § D).

This is the parties’ second appearance before this court. In Light v. Davis, 694 F. Supp. 3d 541 (D. Del. 2023), this court dismissed Plaintiff's complaint with prejudice as unripe and for failure to state a claim. Id. at 547-48, 561. The Third Circuit affirmed in part, noting that because Plaintiff's “claims [were] not ripe, the District Court lacked Article III jurisdiction to consider whether the complaint failed to state a claim. Accordingly, we will vacate the District Court’s order to the extent it dismissed the complaint with prejudice for failure to state a claim and remand with instructions to the District Court to dismiss the case without prejudice.” Light v. Davis, 2024 WL 4144066, at *2 Gd Cir. Sept. 11, 2024). Defendants now move for dismissal under Rules 12(b)(1) for lack of subject matter jurisdiction and 12(b)(6) for failure to state a claim. (D.I. 7 at 1). II. LEGAL STANDARD Because I dismiss this case for lack of subject matter jurisdiction,” I do not determine whether Plaintiff has stated a claim under Rule 12(b)(6). Therefore, I recite here only the standard under Rule 12(b)(1). “Under [Rule] 12(b)(1), a court must grant a motion to dismiss if it lacks subject-matter jurisdiction to hear a claim. . . . In evaluating a Rule 12(b)(1) motion, a court must first determine whether the movant presents a facial or factual attack. In reviewing a facial challenge, which contests the sufficiency of the pleadings, the court must only consider the allegations of the complaint and documents referenced therein and attached thereto, in the light most favorable to the plaintiff.” In re Schering Plough Corp. Intron/Temodar Consumer Class Action, 678 F.3d 235, 243 (3d Cir. 2012) (cleaned up). “A factual attack, on the other hand, is an argument that

The Eleventh Amendment is a jurisdictional bar which deprives federal courts of subject matter jurisdiction.” Blanciak v. Allegheny Ludlum Corp., 77 F.3d 690, 693 n. 2 (3d Cir. 1996) (citing Pennhurst State Sch. & Hosp. v. Halderman, 465 U.S. 89, 98-100 (1984)).

there is no subject matter jurisdiction because the facts of the case—and here the District Court may look beyond the pleadings to ascertain the facts—do not support the asserted jurisdiction.” Const. Party of Pennsylvania v. Aichele, 757 F.3d 347, 358 (3d Cir. 2014). Although Defendants’ opening brief lays out the standard for a factual attack on subject matter jurisdiction (D.I. 8 at 6), Defendants do not distinguish whether they are seeking to mount a facial or factual attack against Plaintiff's complaint. Ultimately, as the result would be the same in either case, I will proceed as though this were a facial attack. I will take the allegations in Plaintiffs complaint in the light most favorable to Plaintiff. WI. DISCUSSION Plaintiff broadly appears to seek two forms of relief.

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John Light, Individually and on Behalf of All Others Similarly Situated v. The Honorable Colleen C. Davis, State Treasurer of the State of Delaware, and Brenda Mayrack, Esquire, State Escheator and Director, Office of Unclaimed Property, Counsel Stack Legal Research, https://law.counselstack.com/opinion/john-light-individually-and-on-behalf-of-all-others-similarly-situated-v-ded-2026.