Lawsuit Challenges Ohio's Use of $600M in Unclaimed Funds for Browns' Stadium

Three people in Ohio filed a lawsuit against state officials who pushed through legislation that will allow the state to use $600 million in unclaimed funds to pay for a domed stadium for the Cleveland Browns. 

The three plaintiffs are seeking class-action status on behalf of thousands of Ohioans to prohibit the state from using their funds while the legal battle plays out. 

The suit claims that taking money from the state's unclaimed funds violates the state's role as a custodian and runs afoul of both the Ohio and U.S. Constitutions.

"The State now intends to confiscate the private property held in the (unclaimed funds account) for the purpose of funding a private development, depriving the rightful owners of their property," the lawsuit states, according to reporting from ABC 5. "The State intends to do so even though it has been long settled that funds held by the State of Ohio in its 'Unclaimed Funds' account are private property."

The suit goes on to say that the unclaimed funds account is not the property of the state and are not part of the state's operating budget. 

The lawsuit asks that the state freeze the funds and notify every person who has unclaimed funds in the account. 

Ohio has approximately $4.8 billion being held in safekeeping for its residents, with the funds coming from old bank accounts, uncashed checks, life insurance payouts and other sources.

The state had previously held those funds in perpetuity, but residents will now have only 10 years to claim their money before it becomes property of Ohio. 

The budget, approved by Republican lawmakers and signed by Gov. Mike DeWine late last month, creates a grace period for people whose money gets taken by the state. They'll still be able to file claims through Jan. 1, 2036.

"The state's plan involves taking private property for the purpose of benefiting a private business and, in particular, one person (Jimmy Haslam) who is more than financially capable of funding the construction of his own privately operated football stadium," the lawsuit says, alluding to the chairman of Haslam Sports Group and co-owner of the Browns.

Haslam Sports Group has said the stadium will cost around $2.4 billion to build. 

DeWine had previously said that he would not be surprised if the move was brought before a judge. 

“I’m sure that will be tested in court, if that’s what we end up doing – if that’s what the legislature ends up doing,” he said at the time. “So I’m sure that will be tested. But that’s nothing. A lot of things get tested in court.”