Tax insight

Michigan Court of Appeals clarifies unclaimed property post-examination duty

Insight
5 minute read
August 28, 2025

What happened?

The Michigan Court of Appeals (on second remand from the Michigan Supreme Court) held on August 18, 2025, that (1) a distinct legal duty to pay or remit property arises under the state's Uniform Unclaimed Property Act (UUPA) when the State Treasurer issues a notice of examination determination, and (2) the statute of limitations for a post-examination enforcement action runs from the date of that notice—not from the original annual reporting or remittance dates. The court reversed the trial court injunctions that barred the treasurer from bringing future enforcement and remanded for entry of summary disposition in favor of the treasurer.

Why is it relevant?

The Michigan Supreme Court previously determined that an examination is a “proceeding,” but does not toll the statute for the annual duty. The Court of Appeals found that the notice of examination determination creates a new enforceable duty with its own limitations period. Noncompliance penalties can include daily civil penalties, a 25% penalty on the value of undelivered property, and misdemeanor exposure after written demand.

Actions to consider

Michigan holders examined under the UUPA should consider the following actions:

Recording the mailing date of any Michigan notice of examination determination as the trigger for 10-year (or five years for associations) enforcement timelines.
Preparing to remediate liabilities identified in the notice and reassessing record-retention requirements.

Dine Brands Global Inc. v. Eubanks, Michigan Court of Appeals No. 360293 (8/18/25); The Walt Disney Company v. Eubanks, Michigan Court of Appeals No. 360291 (8/18/25)