Travelers Express Company, Inc., a Corporation v. Kenneth Cory, Controller of the State of California

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…