Travelers Exp. Co., Inc. v. State

732 P.2d 121, 50 Utah Adv. Rep. 8, 1987 Utah LEXIS 630
CourtUtah Supreme Court
DecidedJanuary 15, 1987
DocketNo. 19216
StatusPublished
Cited by4 cases

This text of 732 P.2d 121 (Travelers Exp. Co., Inc. v. State) is published on Counsel Stack Legal Research, covering Utah Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Travelers Exp. Co., Inc. v. State, 732 P.2d 121, 50 Utah Adv. Rep. 8, 1987 Utah LEXIS 630 (Utah 1987).

Opinion

HOWE, Justice:

This action was brought for a declaratory judgment as to whether certain un-cashed money orders issued by the plaintiff, Travelers Express Company, Inc., were subject to the Utah Uniform Disposition of Unclaimed Property Act, U.C.A., 1953, Title 78, Chapter 44 (repealed and reenacted 1983 Utah Laws ch. 164). Summary judgment was entered by the trial court in favor of the plaintiff. The defendants, the State of Utah, the State Treasurer, and the State Auditor, bring this appeal.

The plaintiff is a Minnesota corporation engaged in the business of selling money orders throughout the United States. It has been selling its money orders in Utah, either directly or through its predecessor, since 1959. While most of these money orders have been presented for payment and payment has been made, some of them have not been cashed, presumably due to their loss or destruction or because of neglect by the purchaser or payee of the instrument. In response to a demand made upon the plaintiff by the State Treasurer, the plaintiff first filed a report on October 31, 1977, under protest, as to the amounts of all uncashed money orders. Subsequent reports were filed by the plaintiff annually through 1982. The plaintiff paid to the Treasurer, under protest, the sums reported and commenced this action to determine whether the uncashed money orders were subject to the Utah Uniform Disposition of Unclaimed Property Act and to seek refund of the amounts paid.

The basis for the trial court’s ruling in favor of the plaintiff was that any action brought by the purchaser or payee of a money order to enforce its payment would be barred by our six-year statute of limitations, U.C.A., 1953, § 78-12-23, dealing with actions on written contracts; consequently, at the end of seven years when the plaintiff was required by the Act to report and pay over any sum representing uncashed money orders, there was nothing legally owing. The sole question for our determination on this appeal is, What ef-[122]*122feet, if any, does the running of the statute of limitations against the purchaser or payee of a money order have on the right of the State to enforce payment to it under the Act? For the purposes of our decision, we assume, but do not decide, that section 78-12-23 applies to money orders and that the statute commences to run when the instrument is purchased. But see Bank of America National Trust & Savings Association v. Cranston, 252 Cal.App.2d 208, 60 Cal.Rptr. 336 (1967).

Utah adopted its version of the Uniform Disposition of Unclaimed Property Act in 1957. In general, it provides for the payment to the State Treasurer of tangible and intangible personal property which is “presumed abandoned” because it has gone unclaimed by its rightful owner after the expiration of time periods ranging generally from seven years to fifteen years. To facilitate collection, the Act provides for reports to be made to the State Treasurer by holders of any such abandoned property and the payment of such property to the Treasurer. Any person claiming an interest in the property may thereafter file a claim to it with the Treasurer, and “no statute of limitations shall bar the filing of a claim.” § 78-44-18. As succinctly stated by Justice Traynor in Douglas Aircraft Co. v. Cranston, 58 Cal.2d 462, 374 P.2d 819, 24 Cal.Rptr. 851, (1962):

The objectives of the Act are to protect unknown owners by locating them and restoring their property to them and to give the State rather than the holders of unclaimed property the benefit of the use of it, most of which experience shows will never be claimed.

The Uniform Act in its section 16 provided:

The expiration of any period of time specified by statute or court order, during which an action or proceeding may be commenced or enforced to obtain payment of a claim for money or recovery of property, shall not prevent the money or property from being presumed abandoned property, nor affect any duty to file a report required by this act or to pay or deliver abandoned property to the State Treasurer.

When Utah adopted the Uniform Act, it deleted section 16. In State ex rel. Baker v. Intermountain Farmers Association, 668 P.2d 503 (Utah 1983), we stated that the legislative history of the Act suggested that section 16 was omitted to avoid doubts as to its constitutionality when applied to claims already barred by the statute of limitations when the Act took effect. We noted that the commissioners’ notes which accompanied the Uniform Act cautioned that section 16 may need to be modified or eliminated before enactment in states whose constitutions have been interpreted to recognize a vested right in one who has the defense of the statute of limitations. The commissioners’ notes suggest indirectly that Utah may be one of these states, based upon our decisions in Ireland v. Mackintosh, 22 Utah 296, 61 P. 901 (1900), and In re Swan’s Estate, 95 Utah 408, 79 P.2d 999 (1938). These cases hold that a claim barred by the statute of limitations cannot be revived by subsequent legislative action. The plaintiff in the instant action also cites the following additional cases to the same effect. McGuire v. University of Utah Medical Center, 603 P.2d 786 (Utah 1979); Del Monte Cory. v. Moore, 580 P.2d 224 (Utah 1978). The commissioners’ notes bear out Justice Traynor’s observation in Douglas Aircraft Co. v. Cranston, supra, that the draftsmen of the Uniform Act believed and intended that section 16 would apply retroactively to claims already barred when the Act took effect.

Thus, it appears that Utah’s purpose in omitting section 16 was simply to avoid a constitutional problem by leaving undisturbed vested rights of holders of property whose owners, at the time the Act took effect, were barred by statutes of limitations from claiming possession. No more significance should be given to the omission of section 16. However, in State ex rel. Baker v. Intermountain Farmers Association, supra, we also attributed to the omission of section 16 an intention on the part of the legislature that the running of a statute of limitations against the owner of [123]*123the property after the effective date of the Act would bar the State Treasurer from making any claim to that property. Thus, the holder of the property would be relieved from any duty to report and deliver the same to the Treasurer. Upon reanalysis, we believe this further conclusion cannot stand.

The Uniform Act was approved in 1954 by the National Conference on Uniform State Laws and the American Bar Association. However, for many years prior thereto, it had generally been held that the running of a statute of limitations was of no consequence to the right of the state to the unclaimed property. 30A C.J.S. Es-cheat §§ 3, 11; Commonwealth v. Cunningham, 337 Pa. 289, 10 A.2d 559 (1940); In re Lamberton’s Estate, 352 Pa. 531, 43 A.2d 94 (1945).

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Bluebook (online)
732 P.2d 121, 50 Utah Adv. Rep. 8, 1987 Utah LEXIS 630, Counsel Stack Legal Research, https://law.counselstack.com/opinion/travelers-exp-co-inc-v-state-utah-1987.