fbpx
News
May 19, 2014

ILR’s Kim Weighs in on Efforts to Reform Delaware’s Abandoned Property Program

Legislation was recently introduced in Delaware that would, “disallow commission-based contracting for escheat (abandoned or unclaimed property).

Today, the Wilmington News-Journal takes a closer look at Delaware’s abandoned property program, which, “has long been a source of friction within the state’s normally cozy relationships with top corporations.”

The News-Journal writer Jonathan Starkey quotes ILR’s Harold Kim, who notes that Delaware has, “the legal authority and the right to uncover” abandoned property that is not paid to the state, but that the, “incentives are particularly skewed.”

“There seems to be a business model by these auditors to be as aggressive as possible to make it as cumbersome as possible, as unreasonable and to force and leverage some type of settlement,” said Kim.

The story notes that, “the state’s contract auditor, Kelmar Associates” collects, “up to 12 percent of any recoveries through their corporate audits.”

The Delaware State Chamber of Commerce has also weighed in, writing in a letter to Governor Jack Markell, “Outsourcing a governmental audit function and paying tens of millions of dollars to out of state contractors, rather than training and employing Delawareans to perform what audit work is fairly required, cannot continue.”

ILR recently released a white paper, “Unclaimed Property: Best Practices for State Administrators and the Use of Private Audit Firms,” which includes suggested best practices designed to maximize the appropriate collection of unclaimed property while protecting and balancing the legitimate interests of consumers, companies and the state.

calculator bankruptcy system Blog Protect the Integrity of the Bankruptcy System. Don’t Let Trial Lawyers Destroy It Other Issues Blog West Virginia Wants to Pay Jurors More---That’s a Good Thing Asbestos, Other Issues Podcasts Episode 23: Torts of The Future: Drones Class Action Litigation, Other Issues Press Releases US Chamber of Commerce Institute For Legal Reform Issues Statement on West Virginia Gov. Jim Justice’s Appointments to the Intermediate Court of Appeals Other Issues Podcasts EPISODE 21: Summit XXI: Litigation Line of Sight: Class and Mass Action Trends in Europe Class Action Litigation, Data Privacy, International Initiatives, Other Issues

Cookie Notice

By clicking “I Accept”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.

Cookie Notice

By clicking “I Accept”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts. Review Settings