A recent ruling from the Texas Court of Appeals has significant implications for Neiman Marcus Group and the Texas Comptroller of Public Accounts. The court decided that Neiman Marcus could not reclaim over $915,000 in merchandise credits it had previously submitted to the state as unclaimed property. The ruling affects how retailers handle unclaimed merchandise credits and clarifies the limits of legal recourse against state entities.
The case, Kelly Hancock, Acting Texas Comptroller of Public Accounts v. the Neiman Marcus Group, was filed under docket number 15-25-00145-CV. It centers around Neiman Marcus' claim that it mistakenly submitted merchandise credits to the state and sought their return. The court's decision, issued on July 2, 2026, concluded that Neiman's claims were barred by the statute of limitations.
Background
Neiman Marcus Group is a prominent retailer known for its luxury consumer goods. The company has a policy of issuing merchandise credits to customers who return items without a receipt or after a specified return period. These credits are redeemable for future purchases but cannot be exchanged for cash.
Under Texas law, the Comptroller is responsible for managing the Unclaimed Property Program. This program requires businesses to report and transfer abandoned property to the state. Between 2012 and 2019, Neiman Marcus submitted a total of $915,157 in unredeemed merchandise credits to the Comptroller as unclaimed property. In August 2020, Neiman Marcus claimed it had made an error in submitting these credits and requested their return. The Comptroller denied this request in March 2021, leading Neiman to file a lawsuit in August 2024.
The Ruling
The Texas Court of Appeals ruled against Neiman Marcus, stating that the company’s claims were barred by the two-year statute of limitations. The court noted, “Neiman’s cause of action accrued on March 29, 2021, when the Comptroller denied Neiman’s $915,157 refund request.” Since Neiman did not file its lawsuit until August 2024, the court found that the claims were time-barred.
The court also clarified that the statute of limitations is jurisdictional when raised by government entities. This means that if a claim is not filed within the allowable time frame, the court may not have the authority to hear the case. The ruling emphasized that Neiman’s claims were based on the unlawful detention of property, which fell under the statute of limitations.
Impact
This ruling has broad implications for businesses dealing with unclaimed property in Texas. It reinforces the importance of timely action when seeking legal remedies against state entities. Companies must be aware of the statutes of limitations that apply to their claims, especially in disputes involving government agencies.
The decision also clarifies the legal boundaries of the Texas Unclaimed Property Program and the responsibilities of businesses in reporting and handling unclaimed merchandise credits. Retailers may need to reassess their policies regarding unclaimed property to avoid similar legal challenges in the future.
What's Next
Details were not available in the court filing regarding whether Neiman Marcus plans to appeal the ruling. However, the case highlights the ongoing legal complexities surrounding unclaimed property and the obligations of businesses under Texas law.