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 these remaining funds in a class action lawsuit, several things can happen:

  • Given back to defendants

  • Class members could receive extra

  • Funds could be designated to charitable programs.

Cy Pres for charitable causes

OLGB promotes distributing the leftover funds to charitable programs that benefit the class members in the community where they live. 

Check out 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 that objective.

  • 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 Deterrence

    Without Cy Pres, left over funds revert to 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 encourages 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 their hand in the cookie jar, others quickly stop the wrongful practice, to avoid being the next one sued.  This fosters accountability, and ethical conduct.