Anthony Kolton deposited money-into an interest-bearing bank account in Illinois. Years passed without activity in the account, so the bank transferred Kolton’s money to the State of Illinois as the Disposition of Unclaimed Property Act requires. 765 ILCS 1025/13. The Act is not an es-cheat statute — it gives Illinois custody, not ownership, of “presumed abandoned” property. 765 ILCS 1025/1©, 2, 14. Yet custody generates a windfall for. the fisc— most such property gets invested, with any income that accrues earmarked for Illinois’s pensioners. 765 ILCS 1025/18. And while owners such as Kolton may file a claim with the Treasurer' of Illinois for return of their property, the Act limits the Treasurer to returning the amount received into custody. 765 ILCS 1025/15. In other words, the Act denies owners such as Kolton the time value of money.
Rather than file a claim with the Treasurer, Kolton sued under 42 U.S.C. § 1983. Kolton proposes to represent himself and others similarly situated. (S. David Goldberg, a second putative class representative, need not be mentioned again. Nor do we mention the class, which the district court has ’ not certified.) Kolton contends that 765 ILCS 1025/15 — the provision denying owners any interest or other return on their money — violates the Takings Clause of the Fifth Amendment, as applied to the states through the Fourteenth Amendment. See Chicago, Burlington & Quincy R.R. v. Chicago,
The Supreme Court has held that the Takings Clause protects the time value of money just as much. as it does money itself. Brown v. Legal Foundation of Washington,
One would have thought this case straightforward after Cerajeski, but Kol-ton lost nevertheless. Relying on Williamson County Regional Planning Commission v. Hamilton Bank,
An initial problem with the district court’s ruling is that Williamson County has nothing to do with subject-matter jurisdiction. True, this court has affirmed dismissals for want of subject-matter jurisdiction based on failure to abide by Williamson County. See Peters v. Clifton,
The distinction between subject-matter jurisdiction and the merits matters because judges must enforce limits on jurisdiction even when litigants prefer a substantive decision. If Williamson County curtails jurisdiction, then the court must decide in every case under the Takings Clause whether the plaintiff has exhausted procedures for obtaining compensation under state law. The court would have to raise the issue on its own, combing a state’s statute books and ease law for potential remedies, and decide without the litigants’ aid whether each of the potential remedies is adequate. Cf. Builders Bank,
Despite treating Williamson County as jurisdictional, the district court'applied a forfeiture doctrine to one aspect of the case. Williamson County requires a person who complains about a taking to pursue adequate procedures for obtaining compensation under state law before litigating a takings claim in federal court.
The Treasurer nonetheless insists that Illinois affords plenty of opportunities to ask for compensation and that these opportunities must be used even if plaintiffs are bound to fail. Anyone may file a claim with the Treasurer, who then may hold a hearing and receive evidence before making a decision. 765 ILCS 1025/19-20. A claimant who does not like the decision can seek administrative review. 765 ILCS 1025/21. Beyond that, state courts are open to hear constitutional arguments. A claimant who thinks there has been a taking can go to circuit court. A claimant who instead maintains that the value of the property has been damaged can go to the court of claims. See Patzner v. Baise,
We do not read Williamson County to require resort to state court when state law unequivocally denies compensation. See Muscarello v. Ogle Board of Commissioners,
Yet it is not all good news for Kolton. This litigation is under § 1983, which makes “[ejvery person” liable for certain acts committed under color of state law. It is against Michael W. Frerichs in his official capacity as Treasurer of Illinois, But a lawsuit against the Treasurer in his official capacity is really one against Illinois, and a state is not a “person” suable under § 1983. Will v. Michigan Department of State Police,
The judgment is vacated, and the case is remanded for proceedings consistent with this opinion.
