Smolow v. Hafer, 598 Pa. 561

Summary

The Supreme Court of Pennsylvania affirmed dismissal of Ronald J. Smolow’s class action challenging Pennsylvania’s Disposition of Abandoned and Unclaimed Property Act. The court held that an owner of abandoned property has no constitutional takings claim for interest earned while the Commonwealth held and later returned the property, reasoning that the statutory process was triggered by the owner’s neglect rather than an overt state taking. The court declined to address class-certification issues after rejecting Smolow’s individual claims.

Holdings

1. Owners of presumptively abandoned property have no claim to interest earned while the property is held in the Commonwealth's perpetual temporary custody under DAUPA; the statutory procedures are triggered by the owner's neglect rather than an overt governmental taking, so the retention of the interest does not require just compensation under Article I, Section 10 of the Pennsylvania Constitution.

Questions Presented

1. Whether Pennsylvania's retention of interest earned while presumptively abandoned property was held in the Commonwealth's custody constituted a taking of private property without just compensation under Article I, Section 10 of the Pennsylvania Constitution.
2. Whether the putative class claims could proceed when Smolow's individual takings claim failed.

Disposition

affirmed