Finders keepers, right? The state of Colorado certainly thinks so. A pair of plaintiffs who disagreed found their lawsuit challenging that notion dismissed, but their appeal to the 10th Circuit was partially successful on April 11, 2025.
David Knellinger and Robert Storey sought to challenge Colorado's Revised Uniform Unclaimed Property Act (RUUPA), claiming a violation of their Fifth Amendment rights. The 10th Circuit ruled that the lower court's decision to dismiss for lack of standing was incorrect, but also affirmed part of the dismissal before remanding it. Knellinger and Storey will have another chance to make their class action suit happen.
You're On the Clock
According to the National Association of Unclaimed Property Administrators (NAUPA), it's estimated that one out of every seven Americans has unclaimed property available. Unclaimed property — also referred to as abandoned — refers to accounts or properties within companies or financial institutions where there's no activity for a certain period, often at least a year. It also includes the contents of bank safety deposit boxes (if the rental fees remain unpaid).
If the institution can't make contact with the owner during the dormancy period, the law states that the company must turn the property over to the state with jurisdiction. State laws differ, but most retain the right to sell the property if the owner doesn't claim it within the statute of limitations.
In Colorado, the RUUPA has different statutes of limitations to claim unclaimed property depending on what it is. Credit or money owed to a customer from a retail business transaction is available for three years, while a money order has a seven-year statute of limitations. The Department of the Treasury is responsible for holding these properties and returning them to the rightful owner if claimed.
Once the prescribed period has passed, the RUUPA authorizes the state of Colorado to sell the abandoned property at a public sale. The proceeds either go into the state's general fund or are earmarked for specific projects.
While the Department of the Treasury is quick to restore property to rightful owners who file a claim with the agency before the statute of limitations expires, it doesn't actively seek the owners. Since the original company or financial institution was required by law to do so before turning the unclaimed property to the Treasury Department, the agency doesn't have an obligation to continue the search.
That's The Thing That I Forgot About But Would Like Back
In their class action filing, Knellinger and Storey claimed that Colorado's ability to claim and sell the property of others without compensation under the RUUPA was in violation of the Fifth Amendment's taking clause. They argued that the Treasury Department should hold the property until it gets claimed.
Their suit was dismissed in 2023 for lack of standing as they had not filed a claim with the Treasury Department to retrieve their property. The 10th Circuit ruled this was in error. Filing a request wasn't required for an unlawful taking claim, so it remanded it to the lower court.
Not everything in the decision went the way Knellinger and Storey wanted. The appeals court upheld the lower court's ruling for the denial of equitable relief, which means that the plaintiff's challenge to the way the state collects properties no longer part of the suit going forward.
Wondering if you have unclaimed property you aren't aware of? You can check for free through the Network of the National Association of State Treasurers. If you are having trouble claiming your property, you can speak to a local attorney.
Related Resources
- Can the Government Seize My Property Without Paying Me? (FindLaw's Land Use Laws)
- Rent and Security Deposit Laws (FindLaw's Landlord-Tenant Law)
- Filing a Lawsuit (FindLaw's Litigation and Appeals)
