Citations
- 664 F.2d 763
Full opinion text
SNEED, Circuit Judge:
This appeal raises the question whether either the defense of statute of limitations or equitable estoppel bars the California Controller’s suit to recover unclaimed property under the Uniform Disposition of Unclaimed Property Act, California Code of Civil Procedure §§ 1500 — 1527 (West & West Supp.1981), also known as the Unclaimed Property Law (UPL). The suit grows out of a long running battle between Travelers Express Company and the Controller of California over the disposition of unclaimed money orders. It is but one of many cases in which certain institutional arrangements have been employed in an attempt to avoid the escheat of unclaimed travelers’ checks, bank deposits, medical payments checks, or money orders. Each attempt, including this one, has failed to achieve its purpose. The result we reach in this case has been foreshadowed by Blue Cross of Northern California v. Cory, 120 Cal.App.3d 723, 174 Cal. Rptr. 901 (1st Dist. 1981). Accordingly, we hold that neither defense is effective against the Controller. As modified by our holding on the statute of limitations, we affirm the judgment of the district court.
I
FACTS
Travelers Express Company is a Minnesota corporation in the business of selling money orders since 1940. Two predecessor and subsidiary corporations have operated in California since 1946; in 1962 one of these companies was merged into the other and in 1965 that company was merged into the plaintiff-appellant, Travelers Express Company, Inc.
The UPL requires holders of money orders unclaimed for seven years and therefore “deemed abandoned” to file annual reports with the Controller. Cal.Civ.Proc. Code §§ 1530, 1513(e), 1511(b). Six months after the report is filed, the holder must pay over the unclaimed property to the state. Cal.Civ.Proc.Code § 1532(a). For unclaimed money orders sold from 1959 to 1969 (and consequently escheated from 1966 to 1976), Travelers followed a policy of deducting a service charge ■ of 25