Legal Challenge to Browns Stadium Funding Faces Mixed Results

State wins federal appeal but loses local court battle over $1 billion in unclaimed funds

Mar. 13, 2026 at 1:27pm

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A legal challenge to the state of Ohio's plan to use $1 billion from its unclaimed property fund to help finance a new Cleveland Browns stadium has had mixed results so far. While a Franklin County court has temporarily blocked the transfer of $600 million in unclaimed funds, a federal appeals court has refused to issue an injunction preventing the state from using the money for the project.

Why it matters

The outcome of this legal battle could have significant implications for how the state of Ohio uses unclaimed funds and whether residents with unclaimed property have adequate protections against the government seizing their assets without proper compensation.

The details

The federal lawsuit, filed on behalf of several Ohio residents with unclaimed funds, claims the new law violates the U.S. Constitution's guarantees of due process and against taking private property without just compensation. However, the federal appeals court rejected the plaintiffs' request for an injunction, citing the high legal bar for such an order. In contrast, the Franklin County court granted an injunction, ruling that the plaintiffs faced an 'actual, imminent injury' of losing control over their property.

  • The federal and Franklin County lawsuits were filed late last year to block Ohio's transfer of the $1 billion from the state's $4.8 billion unclaimed property fund.
  • On Tuesday, a federal appeals court panel refused to issue an injunction preventing the state from using the unclaimed funds.
  • The Franklin County court has temporarily blocked the $600 million transfer until a full trial is held next year on the law's constitutionality.

The players

Jeff Crossman

A Democratic former state lawmaker and attorney who filed both the federal case and the Franklin County lawsuit.

Bethany McCorkle

A spokeswoman for Ohio Attorney General Dave Yost's office.

Cleveland Browns

The NFL team that has been allocated $600 million of the unclaimed funds to help build a new stadium in suburban Brook Park.

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What they’re saying

“We might only because we don't agree with the Sixth Circuit's outcome. The Sixth Circuit seems to say, 'Well, you know, as long as you can compensate someone after the fact, then, you know, violating their constitutional rights doesn't matter. That's not at all how I've read the body of case law that came out of the U.S. Supreme Court over the last 200 years.'”

— Jeff Crossman, Attorney (cleveland.com)

What’s next

The Franklin County lawsuit is set to go to trial early next year, where the court will consider the full constitutionality of the state's plan to use unclaimed funds for the Browns stadium and other projects.

The takeaway

This case highlights the complex legal and constitutional issues surrounding the government's use of unclaimed private property, and the challenges residents face in protecting their rights against such actions, even when they succeed in one court but not another.