Arizona Abandoned Property Law Escapes Constitutional Challenge

An Arizona resident can’t pursue a constitutional challenge to a law that allows the state’s Department of Revenue to hold onto unclaimed checks and other property.

Although Mary Watts’ allegation that the government took possession of her property without providing just compensation is a concrete injury that’s sufficient to establish standing, her claims are largely barred by sovereign immunity, Judge Steven P. Logan of the US District Court for the District of Arizona said in a Wednesday order. The judge dismissed with prejudice Watts’ sole claim against Department of Revenue Director Rob Woods.

Arizona’s Unclaimed Property Act allows the ...