Pennsylvania v. New York

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Pennsylvania v. New York, were two cases which were heard in 1972 before the U.S. Supreme Court. The initial filing was allowed at 407 U.S. 206 and the final decision was ordered at 407 U.S. 223 (1972).

When two states have a controversy between each other, the case is filed for original jurisdiction with the United States Supreme Court. This is one of the very limited circumstances where the court acts as original jurisdiction, e.g. a trial court. In all other cases the court acts as the highest level appellate court in the United States.

The question was, when Western Union had unpaid money orders where the money order was never redeemed or where the order was erroneously underpaid (e.g. a money order for $500 paid as $300), and the amount of time had passed to consider the value of the money order to be unclaimed property, the money representing the value of the unredeemed value of the money order must escheat to the state, which state is supposed to get the money, the state where the money order was purchased, or the state where Western Union has as its home state where it is incorporated? As is the practice in original jurisdiction cases, the Supreme Court had a special master hear the case and make a decision.

The final decision ruled that, when Western Union does not know who the purchaser or the person who redeemed it is is and a money order is never redeemed, the money escheats to the state where Western Union is incorporated, e.g. New York. Where Western Union does know who the purchaser or redeemer is, and a money order is never redeemed or is underreedemed, the remaining money escheats to the state where that purchaser resides, subject to that state's rules for escheat of unclaimed money or property. The Special Master decided to rely on the logic of the previous decision of the U.S. Supreme Court in Texas v. New Jersey, 379 U.S. 674 (1961). The court approved the decision of the Special Master.