Frequently Asked Questions
About Cy Pres
What is Cy Pres
"Cy Pres" is a legal doctrine derived from the French phrase "Cy Pres comme possible," meaning "as nearly as possible." It allows courts to redirect leftover funds from class action settlements to charitable organizations when the original distribution to all class members cannot be fulfilled.
When is Cy Pres typically applied?
Cy Pres is often applied in class action settlements when there are left over funds (or difficulty in distributing the funds directly to individual class members). It ensures that residual funds benefit, as closely as possible, the class members not receiving funds, by funding charities in the communities where those class members live..
How does Cy Pres benefit the legal system?
Cy Pres benefits the legal system by preventing left over funds from reverting to defendants, and thereby promoting deterrence. It also benefits the class members who did not receive their funds, by assisting their specific, geographic community and thereby assisting them.
Who decides where Cy Pres funds go?
Class counsel typically suggest a wide range of charities. In many cases, the Defendant is invited to participate. Then the court approves the allocation of Cy Pres funds. The goal is to direct the funds to a broad range of different organizations or causes in the community where the class members are found.
Why is there a need for Cy Pres?
Class actions usually pend for many years before they conclude. During that time some class members have passed away moved, changed names, and otherwise can no longer be located. The settlement fund cannot then be fully distributed. A Cy Pres provision allows distribution of some or all of those left-over monies to organizations that serve the class members, through programs in their own community.
Should Cy Pres be invoked in every class action?
No. Every case is unique. Cy Pres provisions are appropriate when it is apparent that a significant portion of the settlement funds will not reach class members for any number of reasons—people having died, moved, or are simply non-responsive.
About Cy Pres for Legal Teams
How can law firms actively participate in Cy Pres?
Law firms can participate in Cy Pres by incorporating Cy Pres provisions into settlement agreements, advocating for its use in legal proceedings, collaborating with nonprofits, and staying informed about developments in Cy Pres law.
Looking to learn about how OLGB gets funded?
Learn About Cy Pres
About Cy Pres Distribution
Why not just give the monies back to the defendant?
The typical settlement of a class action calls for a corporate defendant to make payment of a certain amount to the class members, not only as refund for overcharges or wrongdoings, but as deterrence to future misconduct. Giving large amounts of that fund back to the defendant undermines the settlement as a method of making the corporation accountable for its wrongdoing and, perhaps more important, deterring such misconduct in the future.
About Cy Pres Participants/Charity Partners
What charities are eligible?
By selecting an array of causes in a broad geographic area, a Cy Pres distribution will likely benefit the largest number of the missing class members, their friends, or their families.
What Cy Pres charities were selected in cases handled by Dworken & Bernstein?
The list of past recipient charities include groups working with homelessness, hunger, disease prevention, alcoholism treatment, drug treatment, community development, education, and scholarships, mentoring for troubled or displaced children, crisis pregnancy assistance, legal aid services, and a host of others.
General Questions
How can I help?
If you know of an organization in the community that is doing a great job and could use support, suggest the charity to us here. You can also mention the Cy Pres doctrine to lawyers, judges, and others you know. Encourage them to use it
If you are an attorney whose practice includes class actions, contact us to discuss how to negotiate a Cy Pres provision in the settlement of your next class action where significant leftover funds are expected. If you don’t handle class actions, but know of an idea or potential for one, please give us a call for review. There is no charge for this service. It is one of the many ways Dworken & Bernstein gives back to the community.