Steven Albert v. Brooke Lierman

CourtCourt of Appeals for the Fourth Circuit
DecidedSeptember 10, 2025
Docket24-1170
StatusPublished

This text of Steven Albert v. Brooke Lierman (Steven Albert v. Brooke Lierman) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Steven Albert v. Brooke Lierman, (4th Cir. 2025).

Opinion

USCA4 Appeal: 24-1170 Doc: 54 Filed: 09/10/2025 Pg: 1 of 17

PUBLISHED

UNITED STATES COURT OF APPEALS FOR THE FOURTH CIRCUIT

No. 24-1170

STEVEN G. ALBERT; BARRY DIAMOND,

Plaintiffs – Appellees.

v.

BROOKE E. LIERMAN, in her official capacity as the Comptroller of the State of Maryland,

Defendant – Appellant.

Appeal from the United States District Court for the District of Maryland, at Baltimore. Julie R. Rubin, District Judge. (1:22-cv-01558-JRR)

Argued: January 31, 2025 Decided: September 10, 2025

Before DIAZ, Chief Judge, and HARRIS and BERNER, Circuit Judges.

Affirmed in part, reversed in part, and remanded by published opinion. Judge Harris wrote the opinion, in which Chief Judge Diaz and Judge Berner joined.

ARGUED: Howard Ross Feldman, OFFICE OF THE ATTORNEY GENERAL OF MARYLAND, Baltimore, Maryland, for Appellant. Julie M. O’Dell, SMITH, KATZENSTEIN, & JENKINS LLP, Wilmington, Delaware, for Appellees. ON BRIEF: Anthony G. Brown, Attorney General, Robert E. Frey, Assistant Attorney General, OFFICE OF THE ATTORNEY GENERAL OF MARYLAND, Baltimore, Maryland, for Appellant. Kelly A. Green, Lauren A. Ferguson, SMITH, KATZENSTEIN, & JENKINS LLP, Wilmington, Delaware; Arthur Susman, LAW OFFICE OF ARTHUR SUSMAN, USCA4 Appeal: 24-1170 Doc: 54 Filed: 09/10/2025 Pg: 2 of 17

Chicago, Illinois; Charles J. Piven, BROWER PIVEN, A PROFESSIONAL CORPORATION, Baltimore, Maryland, for Appellees.

2 USCA4 Appeal: 24-1170 Doc: 54 Filed: 09/10/2025 Pg: 3 of 17

PAMELA HARRIS, Circuit Judge:

Under the Maryland Uniform Disposition of Abandoned Property Act, Maryland

assumes temporary custody of various forms of property – savings accounts, stocks,

unclaimed wages, and the like – that are “presumed abandoned” after an owner has not

engaged with the property for a period of time, typically three years. Prior to 2004, an

owner who filed with the state to reclaim their property could, if successful, be repaid both

the principal amount and the interest that had accrued while the property was in state

custody. Since Maryland amended the Act in 2004, claimants no longer receive the

accrued interest.

Steven Albert claims this failure to pay interest is unconstitutional under the Takings

Clause. He seeks a declaratory judgment stating that Maryland effects a taking if it does

not pay just compensation for the accrued interest, and he asks for an injunction requiring

Maryland to pay claimants that full amount. The Comptroller, who administers the Act,

moved to dismiss, arguing that Albert lacks standing, that the claims are not ripe, and that

the claims are barred by Eleventh Amendment sovereign immunity. The district court

denied the motion, and the Comptroller appealed.

Under the collateral order doctrine, we review only the district court’s denial of

sovereign immunity. We affirm in part and reverse in part. We hold that Albert’s request

for interest that has already accrued is tantamount to a claim for money damages and thus

barred by the Eleventh Amendment. It is only to the extent that Albert also seeks

compensation for the future interest that will start to accrue after a federal court’s judgment

3 USCA4 Appeal: 24-1170 Doc: 54 Filed: 09/10/2025 Pg: 4 of 17

issues in this case, that he seeks prospective relief falling within the Ex parte Young

exception to Eleventh Amendment immunity.

I.

Steven Albert1 is a Maryland resident who alleges that he owns property held in

custody by the state of Maryland pursuant to the Maryland Uniform Disposition of

Abandoned Property Act (“the Act”), Md. Code, Com. Law § 17-101 et seq. The parties

dispute whether the Act should be interpreted as a custody statute – under which residents

retain their ownership rights in the “presumed abandoned” property held by Maryland – or

an escheat statute – under which Maryland takes ownership of the property.2 But the parties

1 Albert proposes to represent himself and a class of similarly situated property owners, and brought this action with a second putative class representative, Barry Diamond. The court has not yet ruled on class certification, and we refer here only to Albert or the “plaintiffs.” 2 The Act is structured as follows: First, it lays out various categories of property that are “presumed abandoned” upon the satisfaction of certain conditions. Md. Code, Com. Law §§ 17-301–308. The categories range from deposits held by banks, to funds held under terminated insurance policies, to tangible property from dissolved business associations. See, e.g., § 17-301; § 17-302; § 17-305. For most of the categories, so long as certain notice requirements are satisfied, the property is presumed abandoned three years after the owner last engaged with it or the property holder last had a valid address for the owner. See, e.g., § 17-301(b); § 17-302(a); § 17-303; § 17-304(b). Second, the holders of presumed abandoned property are required to pay or deliver the abandoned property to Maryland. § 17-312. The Comptroller is authorized to sell non-money property and retain custody of the proceeds. § 17-316. Third, the Act requires the Comptroller to keep no more than $50,000 of the funds in a specialized account, for paying any resident who files to reclaim their property. § 17-317. The remaining funds are allocated to specialized funds, such as the Maryland Legal Services Corporation Fund, and to Maryland’s General Fund. Id.

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agree that the Act allows residents who can prove they own or owned property held

pursuant to the Act to file a claim with the Comptroller and be compensated for the

principal value of their property. § 17-318; § 17-319. Before 2004, the Act also required

the Comptroller to pay claimants for interest that had accrued on their property. But the

Maryland legislature repealed that provision, and the Act no longer requires the

Comptroller to pay interest. See 2004 Md. Laws ch. 110 (S.B. 276).3

Understanding that he would not be entitled to accrued interest if he filed a claim

for his property with Maryland, Albert first filed this lawsuit in federal court. Albert sues

Brooke Lierman in her official capacity as Comptroller of the State of Maryland,4 claiming

that the Act violates the Takings Clause of the Fifth Amendment, as applied to the states

by the Fourteenth Amendment. Specifically, he alleges that the Act authorizes Maryland

to use residents’ property while it is in state custody without paying just compensation for

that period of beneficial use. In other words, Maryland gets to accrue interest on the

property it holds without paying it back to claimants, and that – in Albert’s view –

constitutes a taking. He seeks a declaratory judgment that this refusal to pay accrued

3 Before the district court, the Comptroller argued that while the amended Act is silent as to compensating claimants for more than the principal amount of their property, it also does not expressly prohibit such compensation. On appeal, the Comptroller assumes that the plaintiffs are correct that the Act does not allow for payment of more than the principal value. We operate on the same assumption. The Comptroller may not pay claimants without authorization, and neither party directs the court to any provision that would authorize the Comptroller to make payments of accrued interest.

The complaint named then-Comptroller Peter Franchot, but current Comptroller 4

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Steven Albert v. Brooke Lierman, Counsel Stack Legal Research, https://law.counselstack.com/opinion/steven-albert-v-brooke-lierman-ca4-2025.