Cy Pres Explained:

Bridging Legal Tradition with Community Impact

The term "Cy Pres," originates from the French phrase "Cy Pres comme possible”, which means as near as possible. It has roots in the law of charitable trusts — for example, if a charity that was specified in a will no longer exists, Cy Pres doctrines say that the money can be given to a similar charity or cause.

In class action lawsuits, when the case is settled and payment of damages are owed to class members, a fund is created. After claims are paid, there is often an amount remaining — for example if class members are not able to be found.

This is where Cy Pres comes in: the court can approve to distribute the remaining funds to the “next best” use.

For leftover funds in a class action lawsuit, there are three choices a judge can make with the remaining funds. It can be:

  • Given back to defendants

  • Class members could receive a bit extra

  • Funds could be designated to charitable programs.

Cy Pres for charitable causes

The best option is to distribute leftover funds to charitable programs that indirectly help the class by supporting the community where they live.

Why charitable distribution funds is ideal for everyone:

  • Preserving Intent and Purpose

    Cy Pres redirects these funds to closely align with the membership of the class, preserving the objectives.

  • Community Impact

    Distributions transform left over funds into a positive force by directing them to charitable programs that benefit the class in their community.

  • Promoting Deterence

    Without Cy Pres, funds revert to the defendants. This provides no deterrence for the unlawful conduct that gave rise to the lawsuit in the first place. Cy Pres prevents this. A wrongdoer is unlikely to repeat their conduct if, at the end, they lose the benefit of the wrong.

  • Promoting. Social Responsibility

    Cy Pres encourage social responsibility. Class action wrongdoing is typically found across entire industries, not just a single company. But likewise, when a single company is sued and must give back its ill-gotten gains (and pay its lawyers on top) there is no point in repeating the misconduct. Others in the industry watch our lawsuits carefully. When one member is caught with its hand in the cookie jar, others quickly stop the wrongful practice.