COLUMBUS, Ohio – A Franklin County Court of Common Pleas magistrate put on hold the state’s plan to transfer billions of dollars in unclaimed funds for sports arenas, including the Browns’ new stadium.
Magistrate Jennifer D. Hunt determined Monday, March 9, that the plaintiffs demonstrated a substantial likelihood of success on their claims. They argue that provisions in last year’s budget violate both the takings and due process clauses of the Ohio Constitution.
Hunt’s preliminary injunction means the state can’t tap funds held in the Unclaimed Funds Trust Fund while a lawsuit over using unclaimed funds is ongoing.
The Ohio attorney general’s office is “reviewing the decision and determining next steps,” said spokeswoman Bethany McCorkle.
Cleveland.com | The Plain Dealer reached out to a Browns spokesman for comment on the Monday order.
Related: Lawsuit alleges corruption in Browns’ stadium $600 million funding deal
The suit was filed last summer on behalf of three unnamed Cuyahoga County residents and other Ohioans with unclaimed funds by attorneys Jeff Crossman and Marc Dann. They argue Ohioans who have assets in the unclaimed trust fund weren’t offered sufficient time to get their money out.
“This is a victory for everyday Ohioans and their constitutional rights,” Crossman said. “The court recognized that the State cannot simply declare private property abandoned and take title to it without constitutional safeguards.”
Dann said the state long has failed to reunite property owners with their funds while sitting on nearly $5 billion in private property.
“Instead of fulfilling its fiduciary obligations, the legislature tried to permanently confiscate this money for a private sports project. The court’s ruling confirms that private property rights cannot be swept aside for economic development schemes, no matter how they are packaged. This is a significant day for constitutional protections in Ohio.”
Crossman and Dann’s class-action suit challenges a section of the two-year budget lawmakers passed last summer that allows the unclaimed funds to be deemed abandoned and transferred to the state.
Approximately $1.7 billion to $1.9 billion was scheduled to be transferred from the unclaimed trust fund to a new sports facilities account on Jan. 1, 2026 – including $600 million which was for construction of the Browns’ stadium in Brook Park.
Before Monday’s decision, judges issued two temporary orders halting the funds transfer.
Hunt said the budget law fails to require any notice be given to owners that the State will take title to their funds, violating due process requirements. Additionally, she said the economic or financial benefits of the sports stadiums are insufficient to satisfy constitutional requirements that taking people’s funds is for “public use,” as required by the Ohio Constitution.
It’s unclear whether the injunction will delay the beginning of construction on the new Browns stadium.
Delays could increase construction costs. The Haslam Sports Group might need to cover additional expenses in the meantime, potentially paying interest on loans or using money currently held in investments.”
The Browns have already started excavation work on the new stadium, which is designed to have the field 80 feet below ground level so as not to disrupt air traffic at nearby Cleveland Hopkins International Airport. An official groundbreaking ceremony for the new stadium is scheduled for April 30.
Meantime, the Ohio Division of Unclaimed Funds can continue administering the trust fund in a custodial capacity, including routine processing and payment of approved claims and ordinary administrative expenses.