David a. Brauer and Marguerite E. Brauer v. State of Illinois

ORDER

SPRAGUE, C.J. This matter coming to be heard on the motion of Respondent and Claimant for Summary Judgment and it appearing to the Court that Claimants have received due notice, and the Court being fully advised in the premises finds that: Both motions are brought pursuant to Section 2-1005(b) of the Code of Civil Procedure.

Claimants allege that on March 31, 1987 they purchased 350 shares of common stock in Immunomedics, Inc., which is reflected in Stock Certificate No. MUC 8481.

Claimants allege that on August 23, 1991 they purchased an additional 100 shares of Immunomedics, Inc. stock which is reflected in Stock Certificate No. MUC 12461.

Claimants allege that they held these Stock Certificates, from the dates of purchase until February 1, 2000, in their banking institution located in Chicago Heights, Illinois. In January or February 2000, Claimants tendered their Immunomedics, Inc. stock to their broker for the purpose of selling the stock. At that time, the sale appeared to proceed without any problems.

[*220] On March 6, 2000, Claimants where then informed by their broker that the sale of the stock had been disallowed because Claimants were no longer considered legal owners of the stock because it had escheated to the State in 1999. Then Claimants’ broker demanded that Claimants reimburse it, $16,541.50, which was the amount paid for the 450 shares. Claimants did this on March 13, 2000.

Claimants submitted a claim to the Illinois State Treasurer’s Office, Unclaimed Property Division. Claimants acknowledged that on June 15, 2000, the State of Illinois refunded Claimants $5,045.45 which is the net return the State received on this stock in 1999.

This case is governed by the Uniform Disposition of Unclaimed Property Act, 765 ILCS 1025 et seq. (hereinafter “the Act”) and the administrative rules promulgated thereunder at 38 Ill. Adm. Code 180.10 et seq. The Act is administrated by the Treasurer of the State of Illinois (“State Treasurer”).

On May 29, 2002, Respondent filed with the Court a Department Report prepared by the State Treasurer in the investigation of this claim. Pursuant to Court of Claims Regulations 74 Ill. Adm. Code 790.140, a department report is prima facie evidence of the facts set forth therein. According to the Departmental Report, on May 7, 1999 Immunomedics, Inc. issued to the Director Dept of Financial Inst/Unclaimed Property Division a Stock Certificate No. MUC 0017052 with CUSIP#452907108 for 585 shares of common stock in Immunomedics, Inc. This Stock Certificate consisted of cancelled shares of stock owned by six individuals two of whom were Claimants. The Departmental Report lists the address for Claimants as 226 Highland Drive, Chicago Heights, Illinois 60411-0000 and indicates that it was a “bad address.”

Under the Act and accompanying administrative rules, Immunomedics, Inc. had an obligation to use due diligence to notify Claimants, at their last known address, that their stock would be turned over to the State. Immunomedics, Inc. either compiled with the requirements of the Act and related rules, or it failed to so comply.

If Immunomedics, Inc. provided notice to Claimants at their last known address, as required by the Act and related rules, then Claimants’ claim should fail because they would have had prior notice of the impending transfer of their stock to the State. If Immunomedics, Inc. failed to provide notice to Claimants at their last known address, as required by the Act and related rules, then Claimants have a claim against Immunomedics, Inc. for negligence. Claimants have previously acknowledged a potential claim against Immunomedics, Inc.

705 ILCS 505/25 states:

“Any person who files a claim before the court shall, before seeking final determination of his or her claim exhaust all other remedies and sources of recovery whether administrative or judicial; except that failure to file or pursue actions against State employees, acting within the scope of their employment, shall not be a defense.”

765 ILCS 1025/21 provides:

[*221] “ A final administrative decision of the State Treasurer in respect to a claim filed hereunder shall be subject to judicial review pursuant to the provisions of the Administrative Review Law [FN1] and the rules adopted pursuant thereto. The review action may be instituted by any person adversely affected or aggrieved by the decision.” “The Office of the State Treasurer shall furnish a certified transcript of the record to any party of record upon the payment of the actual page charge of the record to a commercial reporting service for the preparation of the transcript. If no hearing was held, the State Treasurer shall deliver a copy of his decision stating the reasons upon which the claim was denied and deliver it to any party of record within 20 days of demand.”

Claimant has failed to pursue a cause of action against Immunomedics, Inc. and failed to file an Administrative review of the State Treasurer’s decision to only pay them $5,045.45. Therefore, Claimants have failed to exhaust their remedies as required by statute.

It is therefore ordered that Claimant’s Motion for Summary Judgment is denied.

It is further ordered that Respondent’s Motion for Summary Judgment is granted and said case is dismissed.