By: WISCONSIN LAW JOURNAL STAFF//March 11, 2024//
7th Circuit Court of Appeals
Case Name: Tina Gerlach v. Todd Rokita
Case No.: 23-1792
Officials: Wood, Scudder, and St. Eve, Circuit Judges.
Focus: Indiana Unclaimed Property Act
Gerlach alleged that Indiana officials violated her Fifth Amendment right to just compensation under the Takings Clause. Gerlach’s unclaimed property was seized by the state under the Revised Indiana Unclaimed Property Act, and she argued that Indiana failed to compensate her for the interest accrued while her property was held by the state.
Gerlach sued multiple state officials, seeking both declaratory and injunctive relief, as well as compensation. The defendant officials moved for judgment on the pleadings, asserting that Gerlach’s claim for prospective relief was moot and her claims for retrospective relief were barred by the Eleventh Amendment. The district court sided with the defendants and granted their motion, leading Gerlach to appeal.
The Seventh Circuit upheld the district court’s dismissal. It determined that Gerlach’s request for prospective relief was moot because Indiana had enacted new legislation mandating the payment of interest on all recovered property. Furthermore, the court ruled that Gerlach could not seek compensation from Indiana officials in federal court due to Eleventh Amendment sovereign immunity, as Indiana state courts were available to hear her claims. Lastly, the court concluded that Gerlach’s claim for compensatory relief effectively targeted the State of Indiana, thus falling under sovereign immunity and being barred by Section 1983 of the Civil Rights Act, which does not permit actions against states.
Affirmed.
Decided 03/06/24