COLUMBUS, OHIO — A Franklin County Court of Common Pleas magistrate today issued a landmark ruling granting a preliminary injunction that prevents the State of Ohio from escheating billions of dollars in private property held in the Ohio Unclaimed Funds Trust Fund (UFTF).
In her decision, Magistrate Jennifer D. Hunt found that plaintiffs demonstrated a substantial likelihood of success on their claims that Ohio’s amended Unclaimed Funds Law violates both the Takings Clause and Due Process Clause of the Ohio Constitution. The ruling enjoins state officials from certifying, transferring, diverting, reclassifying, liquidating, or otherwise expending funds held in the UFTF.
The lawsuit challenges House Bill 96, which amended Ohio’s Unclaimed Funds Law to declare that funds held in the UFTF for ten years or more are “deemed abandoned and escheat to the state”. Approximately $1.7 to $1.9 billion was scheduled to be transferred from the unclaimed funds account to a newly formed sports facilities commission on January 1, 2026. $600 Million of the proceeds were intended to fund construction of a new Cleveland Browns stadium in Brook Park. The remaining funds would be available to other sports facilities around the state that applied for the funds.
Jeff Crossman, lead counsel for the plaintiffs, stated: “This is a victory for everyday Ohioans and their constitutional rights. The court recognized that the State cannot simply declare private property abandoned and take title to it without constitutional safeguards. The injunction ensures that billions of dollars belonging to Ohio citizens remain protected until the constitutional questions we raised are fully resolved.”
Marc Dann, co-counsel representing the plaintiffs, added: “For too long, the State of Ohio has failed in its duty to reunite property owners with their funds while sitting on nearly $5 billion in private property. Instead of fulfilling its fiduciary obligations, the legislature tried to permanently confiscate this money for a private sports project. The court’s ruling confirms that private property rights cannot be swept aside for economic development schemes, no matter how they are packaged. This is a significant day for constitutional protections in Ohio.”
The court found that the amended statute fails to require any notice be given to owners that the State will take title to their funds, violating due process requirements. Additionally, the court determined that the taking is not for “public use” as required by Ohio’s Constitution, noting that economic or financial benefit alone is insufficient to satisfy constitutional requirements.
Magistrate Hunt wrote that while the State may have a right to take possession of funds that will clearly never be claimed, “the taking to accomplish such good must be for a public use and comply with due process requirements. Here, the amended statute fails in both aspects”.
The injunction allows the Division of Unclaimed Funds to continue administering the UFTF in a custodial capacity, including routine processing and payment of approved claims and ordinary administrative expenses.
Plaintiffs were represented by attorneys Jeffrey Crossman, Marc Dann, Andrew Engel and Marita Ramirez of Dann Law.
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Media Contact: Marc Dann 330-651-3131 md***@*****aw.com
