texas

Paxton Announces Supreme Court Lawsuit Against Delaware

More than 20 states are suing Delaware for allegedly violating federal law by claiming money that belongs to other states.

Texas Attorney General Ken Paxton announced a new federal lawsuit that will go directly to the U.S. Supreme Court.

Paxton announced that Texas and 20 other states will file a lawsuit against the State of Delaware before the high court, as the Constitution allows the states to do.

The issue is over the Disposition Act of 1974. Paxton says that law allows unused official checks, like money orders or traveler's checks, to be claimed by the state in which they were purchased.

However, General Paxton said at a press conference on the steps of the court that Delaware began demanding banking institutions incorporated in its state to send that money to Delaware and not where the checks were purchased.

"They've had our money over the last several years, they've kept our money," Paxton told reporters. "Delaware has the money. The business itself doesn't have the money, they were ordered by Delaware to send the money to Delaware. So, we're just trying to get what is owed to us."

According to the lawsuit, being led by the Arkansas AG's office, the 21 states that have filed sued are owed roughly $150 million and if all 49 states claimed the money more than $400 million would be owed. Texas could be owed $10 million.

In a news release, the AG's office specifically refers to the company MoneyGram violating the federal law along with the State of Delaware.

It is not unusual for states to sue each other. In 2015, Nebraska and Oklahoma sued the State of Colorado over its marijuana law.

Paxton has filed several high-profile lawsuits against the federal government since taking office, including one last month over the new transgender bathroom guidelines mandated by President Obama.

Paxton didn't speak to that lawsuit, other than saying he feels they have a solid case before the Supreme Court when asked about it.

Paxton also declined to say whether then Attorney General, now Governor, Greg Abbott should have pursued a lawsuit against Donald Trump's Trump University.

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