Schramm v. Mayrack

CourtDistrict Court, D. Delaware
DecidedSeptember 30, 2025
Docket1:22-cv-01443
StatusUnknown

This text of Schramm v. Mayrack (Schramm v. Mayrack) 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.

Bluebook
Schramm v. Mayrack, (D. Del. 2025).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF DELAWARE

WALTER SCHRAMM, et al., ) ) Plaintiff, ) ) v. ) C.A. No. 22-1443 (MN) ) BRENDA MAYRACK, et al., ) ) Defendant. )

MEMORANDUM OPINION

Martin D. Haverly, MARTIN D. HAVERLY ATTORNEY AT LAW, Wilmington, DE; William W. Palmer, PALMER LAW GROUP – Attorneys for Plaintiffs.

Arthur G. Connolly, Max B. Walton, Christina M. Thompson, CONNOLLY GALLAGHER LLP, Wilmington, DE – Attorneys for Defendants.

September 30, 2025 Wilmington, Delaware oracle NOREIKA, U.S. DISTRICT JUDGE: Plaintiffs Walter Schramm, Christine Kydd, Mark Hilferty, Ludovic Bonnin, (“Plaintiffs”) move for summary judgment in their favor on Count I of the Amended Complaint. (D.I. 23, 86). Defendants Brenda Mayrack, Brian Wishnow, and Richard J. Geisenberger (“Defendants”), in their official capacities as the Delaware State Escheator, Assistant Director of Enforcement of the Office of Unclaimed Property (“OUP”), and Secretary of Finance for the State of Delaware, respectively, filed a cross-motion for summary judgment on the same Count. (D.I. 94). The motions have been briefed and submitted along with concise statements of fact. (D.I. 87, 88, 95, 98, 99).' The Court heard argument. (D.I. 137). After careful consideration, and for the reasons set forth below, the Court will DENY Plaintiffs’ motion for summary judgment and GRANT Defendants’ motion. 1. BACKGROUND Plaintiffs are a group of individuals who argue Defendants unconstitutionally claimed their property, including securities, as abandoned and co-opted it for the State’s general use under Delaware’s Unclaimed Property Law, 12 Del. C. §§ 1130-1190 (‘DUPL”), which codifies the common-law doctrine of escheat. (D.I. 79 at 1 n.1). To that end, Plaintiffs filed a putative class action against the State of Delaware and Defendants, all employees of the State, in their personal and official capacities on November 11, 2022 (“the Complaint”). (D.I. 1).

Well-acquainted readers will note that the Court cites only first-round briefing from the parties on the motions. This is because the Court denied the Plaintiffs’ Motion to Deem Timely their Combined Answer and Reply Brief on summary judgment, which was filed months after the parties’ originally-agreed schedule. See D.I. 138. After that motion was filed, the parties stipulated and the Court ordered on March 25, 2025, that Defendants need only file a reply if Plaintiffs’ motion was granted. (D.I. 118). It was not, and at oral argument, Defendants asked the Court to decide summary judgment on the papers before it. (D.I. 137 at 106:4-5).

The Complaint alleged constitutional violations of the Fifth Amendment takings and Fourteenth Amendment due process clauses under 42 U.S.C. § 1983. (Id.). In response, the State and Defendants moved to dismiss the claims for lack of jurisdiction and failure to state a claim. (D.I. 11). The parties completed briefing on that motion on March 7, 2023. (D.I. 12, 14, 15). On

September 29, 2023, the Court dismissed the claims against the State of Delaware entirely and against the Defendants in their personal capacities but permitted amendment against the Defendants in their official capacities as to the Fifth and Fourteenth Amendment claims. Additionally, the Court ordered an expedited discovery schedule as to whether notice was given to Plaintiffs consistent with the Fourteenth Amendment’s due process requirement. (D.I. 17). Plaintiffs then filed the Amended Complaint and the parties began discovery. (D.I. 23, 24). On November 17, 2023, Defendants filed a second motion to dismiss, which the parties finished briefing by February 9, 2024. (D.I. 27, 28, 35, 45). After considering the briefing, the Court dismissed Count II of the Amended Complaint, which alleged a takings claims under the Fifth Amendment. (D.I. 79). The Court also struck arguments Plaintiffs raised as outside the scope of

leave to amend, including new arguments that “Defendants violated other Constitutional safeguards and federal securities laws” and “expan[sions] upon their allegations regarding third- party auditors.” (D.I. 79 at 11-12). As such, the only claim that remains is Plaintiffs’ First Claim for Relief, which challenges the notice provisions of the DUPL under the Fourteenth Amendment. (D.I. 23, 80). While the Court considered the briefing for the second motion to dismiss, the parties conducted discovery on the notice issue. The parties exchanged requests for documents, interrogatories, and admissions. (D.I. 25, 26). They noticed and re-noticed depositions. (E.g., D.I. 39, 40, 41, 42, 61, 66, 67, 79). Once complete, the parties informed the Court that summary judgment motions and briefing were forthcoming. (D.I. 81). Consistent with that report and the Court’s subsequent rulings, the parties filed their motions and briefs. (D.I. 86, 87, 94, 95). Following multiple stipulated extensions, Plaintiffs filed an untimely combined answering and reply brief. (D.I. 115). The Court heard argument on the Plaintiffs’ request for that brief to be

deemed timely filed and ultimately denied the request. (D.I. 137, 138). At the conclusion of argument, the Defendants elected not to file reply briefing and accepted the Court’s decision to rule on the papers before it. (D.I. 137 at 106:4-5). The Court now considers summary judgment. II. LEGAL STANDARD A court must grant summary judgment “if the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.” Fed. R. Civ. P. 56(a). The moving party bears the burden of demonstrating the absence of any genuine issue of material fact. Celotex Corp. v. Catrett, 477 U.S. 317, 323 (1986). Beyond that burden, the court must also find for itself whether there exists a genuine dispute of material fact and if the movant deserves summary judgment. United States v. Brace, 1 F. 4th 137, 143 (3d Cir. 2021). “Material” facts are those that “could affect the outcome of the case.” Thomas v. Tice,

948 F. 3d 133, 138 (3d Cir. 2020) (citation omitted). “[A] dispute about a material fact is ‘genuine’ if the evidence is sufficient to permit a reasonable jury to return a verdict for the non-moving party.” Lamont v. New Jersey, 637 F. 3d 177, 181 (3d Cir. 2011). A non-moving party asserting that a fact is genuinely disputed must support such an assertion by: “(A) citing to particular parts of materials in the record, including depositions, documents, electronically stored information, affidavits or declarations, stipulations, . . . admissions, interrogatory answers, or other materials; or (B) showing that the materials cited [by the moving party] do not establish the absence . . . of a genuine dispute.” Fed. R. Civ. P. 56(c)(1)(A)-(B). The non-moving party’s evidence “must amount to more than a scintilla but may amount to less (in the evaluation of the court) than a preponderance.” Williams v. Borough of W. Chester, Pa., 891 F.2d 458, 460-61 (3d Cir. 1989). The court must view the evidence “in the light most favorable to the non-moving party and draw all reasonable inferences in that party’s favor.” Thomas v. Cumberland Cnty., 749 F. 3d 217,

222 (3d Cir. 2014). “If there is any evidence in the record from any source from which a reasonable inference in the nonmoving party’s favor may be drawn, the moving party simply cannot obtain a summary judgment.” Aman v. Cort Furniture Rental Corp., 85 F. 3d 1074, 1081 (3d Cir. 1996) (citation modified). III.

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