Appropriate recipients
California state law makes it clear that unclaimed or abandoned class action awards can be designated to a nonprofit.
According to language in CCP 384,
“(a)It is the policy of the State of California to ensure that the unpaid cash residue and unclaimed or abandoned funds in class action litigation are distributed, to the fullest extent possible...either to further the purposes of the underlying class action or causes of action, or to promote justice for all Californians”
“(b) …to nonprofit organizations or foundations to support projects that will benefit the class or similarly situated persons, or that promote the law consistent with the objectives and purposes of the underlying cause of action, to child advocacy programs, or to nonprofit organizations providing civil legal services to the indigent.”
If you are an attorney for either the plaintiffs or defense, your client(s) will appreciate efficiency in drafting settlement language. Look to our tools for sample templates.
How to find a nonprofit recipient for class action residual funds
Civil legal aid organizations advance access to justice for all Californians. See here for a list of IOLTA-funded civil legal aid organizations in California.
Many nonprofits may further the purpose of the underlying class or causes of action. Consider choosing a local food bank or senior center as a recipient, or browse California nonprofit organizations by area of work. See here for a list of nonprofits that are part of the CalNonprofits community. You can also use either of the above lists to find ideas for child advocacy programs across the state.
California County Law Libraries expand legal knowledge, prevent fraud and injustice, and improve access to justice by providing information and resources to the general public on a wide range of legal topics at no charge. Many are incorporated as nonprofits and can receive a class action residual award. To find a local law library, click here.
If you are unsure if counsel can agree on a single recipient or a group of recipients, the Greg E. Knoll Justice Gap Fund promotes access to justice and funds civil legal services to the indigent across California.