Class Action Settlement Residue and Cy Pres Awards: Emerging Problems and Practical Solutions

28 Pages Posted: 23 Feb 2017

See all articles by Wilber Boies

Wilber Boies

McDermott, Will & Emery

Latonia Keith

Concordia University School of Law

Date Written: August 22, 2013

Abstract

Class action settlements often present the court and parties with the practical problem of disposing residual funds that remain after distributions to class members. The cy pres doctrine is a well-recognized device that permits the court to designate suitable organizations to receive such funds. Recently, academics, judges, practitioners, and professional objectors have mounted a multi-faceted attack on this device, ranging from constitutional and ethical concerns to appeals challenging specific awards. This Article first describes the use of cy pres awards in class action settlements and explains why the constitutional, statutory, and ethical objections are unfounded. This Article then addresses other concerns that have been raised about particular awards by suggesting a principled and practical approach to cy pres awards. Finally, this Article explains why public interest and legal services organizations—organizations focused on providing access to the justice system for disenfranchised individuals—are appropriate cy pres recipients and avoid many of the problems raised by other potential recipients.

Keywords: cy pres, class action, legal aid, public interest

Suggested Citation

Boies, Wilber and Keith, Latonia, Class Action Settlement Residue and Cy Pres Awards: Emerging Problems and Practical Solutions (August 22, 2013). Virginia Journal of Social Policy and the Law, Vol. 21, No. 2, 2014, Available at SSRN: https://ssrn.com/abstract=2921719

Wilber Boies

McDermott, Will & Emery

340 Madison Avenue
New York, IL 10173
United States

Latonia Keith (Contact Author)

Concordia University School of Law ( email )

501 W. Front St
Boise, ID 83702
United States
208.639.5417 (Phone)
208.639.5498 (Fax)

HOME PAGE: http://law.cu-portland.edu/latonia-haney-keith

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