Posts tagged as:

cy pres

Class action roundup

by Walter Olson on May 13, 2013

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Class action roundup

by Walter Olson on March 29, 2013

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Class action roundup

by Walter Olson on November 19, 2012

  • Ted Frank on Whirlpool front-loading washer class action [PoL] $1.5 million for attorneys, $41,510 for class? Judge balks at Amex gift card settlement [same] EasySaver coupon settlement “conservatively” values coupons at 85% of face value [same]
  • Cy pres: Roger Parloff on tech-defendant class-action cy pres [Fortune] Privacy groups nominated for cy pres windfall in Facebook settlement [Wired, PoL]
  • “Class-Action Lawyers Face Triple Threat At Supreme Court” [Daniel Fisher at Forbes; related, Michael Bobelian]
  • Georgia high court: company could be on hook for $456 million for sending junk faxes [UPI] Will unwanted text-message class actions be the sequel to junk-fax litigation? [Almeida, Sedgwick via WLF]
  • “Class action summer camp” series from Andrew Trask includes refreshers on key concepts such as typicality, adequacy, etc.
  • “Supreme Court Hears Arguments in Comcast” [Wajert, earlier]
  • City of Des Moines class action: we owe it to ourselves [Iowa Appeals] For another case where there was high overlap between plaintiff class members and those expected to pay damages, see Sept. 2, 1999 [Milwaukee tainted municipal water system]

The judge found fault with a cy pres diversion of funds to charity. Ted Frank had criticized the settlement as leaving consumers in arguably a worse position than if the lawyers hadn’t sued. [Point of Law, earlier]

Consumer Action responds

by Walter Olson on August 7, 2012

Consumer Action, the San Francisco-based nonprofit advocacy and education group, takes issue with our August 1 post on its receipt of cy pres awards from class action settlements. You can read the letter from Linda Sherry, its DC office director, here, along with the original post, which we have edited in response to the objections.

A San Francisco nonprofit named Consumer Action is in the habit of pocketing cy pres moneys — leftover funds that are supposed to go “as nearly as possible” to class relief — from class actions against credit card companies and other mass marketers. Does Consumer Action have any connections to lawyers who file class action suits, and if so, are those connections significant? [Ted Frank, Point of Law] (Bad link fixed now; text edited August 5 per discussion below.)

[A Consumer Action executive has been in touch to take issue with this post, pointing out, among other things, that the two personages mentioned in the Point of Law post are no longer married to each other, and arguing that the group's work is independent of class action lawyers. I have reworded the post to reflect these concerns.]

August 6 update: Letter from Consumer Action’s Linda Sherry follows, continued after jump:

Dear Mr. Olson,

I am writing to you to clarify certain points made in your recent blog post, “Consumer Action, chez Sturdevant” (http://overlawyered.com/2012/08/consumer-action-chez-sturdevant/) based on a post by PointofLaw.com (http://www.pointoflaw.com/archives/2012/07/damned-if-you-do-files-chase-bank-credit-card-class-action.php).
Patricia Sturdevant, currently the president of Consumer Action’s Board of Directors, is employed as Deputy Commissioner for Policy and Planning at California Department of Insurance. She has been divorced from attorney James Sturdevant since 1996. Mr. Sturdevant’s firm has no formal connection to Consumer Action, however we admire of Mr. Sturdevant’s track record as a consumer attorney and consider him one of many valued supporters. These supporters also include corporations, foundations, public interest groups and individuals.

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A three-judge panel of the Ninth Circuit led by Judge Stephen Trott has rejected a settlement between class action lawyers and Kellogg over allegedly misleading promotion of its Frosted Mini-Wheats cereal. The settlement involved a smallish refund offer for the class of consumers, an unrelated food giveaway (so-called cy pres relief, given to beneficiaries other than the class initially wronged), and $2 million to the plaintiff’s lawyers, or roughly $2,100 an hour. [Hans von Spakowsky/PJ Media, Ted Frank/PoL, ABA Journal]

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Martin Redish (Northwestern) and John Beisner (Skadden Arps) were among the panelists at the June 1 hearing, and cy pres slush funds were a particular focus of interest [John O'Brien/Legal NewsLine, Ted Frank/PoL]

November 23 roundup

by Walter Olson on November 23, 2011

  • Big win for Ted Frank against cy pres slush funds [CCAF, Fisher, Zywicki, CL&P, @tedfrank ("Ninth Circuit rules in my favor ... but I still think I'm right".)]
  • “Can the Vatican Be Subject to ICC Prosecution?” [Ku/OJ]
  • “Tennessee: ATS Sues City Over Right Turn Ticket Money” [The Newspaper]
  • “Law firms dominating campaign contributions to Obama” [WaPo]
  • Does that mean it’s an entitlement? Punitive damage limits face constitutional challenges in Arkansas, Missouri [Cal Punitives]
  • Businessman sues to silence critical blogger, case is dismissed, now files suit #2 [Scott Greenfield]
  • Going Hollywood? “The Supreme Court should move to Los Angeles” [Conor Friedersdorf]

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Update roundup

by Walter Olson on November 13, 2011

Further on stories we’ve noted in the past:

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October 13 roundup

by Walter Olson on October 13, 2011

  • Behind the antitrust assault on Google [Jerry Brito, Josh Wright, more]
  • Rapid rise of lawsuit lenders [WSJ] And a Searle Civil Justice Institute conference on third party financing of litigation;
  • More law firms muscle into class action against e-book publishers [PaidContent] Fifth Circuit questions cy pres [Trask] And a new edition of the Federalist Society’s Class Action Watch is out;
  • When the house painters announce they’re not leaving: “Britain plans to tighten anti-squatter laws” [NYT]
  • “Courts Call Out Copyright Trolls’ Coercive Business Model, Threaten Sanctions” [EFF] “Righthaven’s Copyright Trolling is a Bankrupt Idea” [Cit Media Law] More: Vegas Inc.
  • “Twombly is the Logical Extension of the Mathews v. Eldridge Test to Discovery” [Andrew Blair-Stanek via Volokh, Frank] “Four more reasons to love TwIqbal” [Beck] “O’Scannlain says 9th Circ has adopted ‘Iqbal lite’ pleading standard, ‘Same insufficient complaints, fewer dismissals!’” [@ScottKGraham on dissent in Starr v. County of Los Angeles, PDF]
  • Florida farms sell raw milk as (wink) “pet food” [Sun-Sentinel]

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September 19 roundup

by Walter Olson on September 19, 2011

  • Educator: please don’t bring lawyers to parent-teacher meetings [Ron Clark, CNN] Steve Brill: what I found when I investigated NYC teacher “rubber rooms” [Reuters] “The Six Dumbest Things Schools Are Doing in the Name of Safety” [Cracked] School waterfall liability [Lincoln, Neb. Journal-Star]
  • As predicted: “Dodd-Frank Paperwork a Bonanza for Consultants and Lawyers” [NYT]
  • “Running out of common drugs” [Josh Bloom, NY Post] Pharmaceutical shortages: the role of Medicare price controls [Richard Epstein, Hoover; earlier here, here, etc.]
  • DoT insists on exposing private flight plans online. Yoo-hoo, privacy advocates? [Steve Chapman]
  • New class action law in Mexico includes loser-pays provision [WSJ]
  • Newt Gingrich candidacy revives memories of his 1995 call for death penalty (with “mass executions”) for drug smuggling [NYT archive via Josh Barro; see also @timothy_watson "Sounds kinda like Shariah Law to me.")
  • "Cy pres slush fund in Georgia under ethics investigation" [PoL]

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It’s surprising there isn’t more controversy over state AGs’ frequent practice of using moneys from lawsuit settlements for their own favored causes (as opposed to, say, handing it over to the state treasury). Now Arkansas AG Dustin McDaniel is drawing criticism for his funneling of cy pres funds to politically advantageous causes that don’t happen to have been voted appropriations by the state legislature [John Brummett, Arkansas News; Dan Greenberg, The Arkansas Project, and followup]

P.S. Related on cy pres in private class actions: Dan Popeo, WLF (Google Buzz settlement); Michael Tremoglie, LNL; Ted Frank.

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Ted Frank’s class action settlement reform group, the Center for Class Action Fairness, has announced “multiple victories” in ongoing cases arising from settlements by Apple, Classmates.com, Toyota, HP, and gasoline retailers. Among the topics addressed in objection: exaggeration of benefits supposedly provided for the class, excessive attorney fees, and diversion of proceeds to groups unrelated to the class. Details here.

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March 23 roundup

by Walter Olson on March 23, 2011

  • New Yorker suing boss for $2M because working in New Jersey caused him “anguish” [Biz Insider]
  • British lawyer’s libel threats impede UK publication of Paul Offit vaccine book [Respectful Insolence]
  • Lawsuit settlement leads to Florida push to curb tobacco discounter [WSJ; background, Jeremy Bulow]
  • Allegation: attorneys made personal use of cy pres fund in Armenian genocide settlement [PoL]
  • “Telecommuting employees raise special wage and hour issues” [Hyman]
  • UK bias cops wonder whether to ban gay-preferred along with gay-not-preferred guesthouses [Ed West, U.K. Telegraph]
  • Copyright mills: “Local law firm wants to defend people sued by local law firm” [TBD] Related: [Citizen Media Law, Coleman]
  • “Top 10 Reasons to Not Open a Bar or Restaurant in NYC” [NY Enterprise Report]

Among its most insidious features, notes Ira Stoll, is a $2.5 million cy pres fund earmarked for “corporate governance programs at 12 universities across the country,” and which will predictably encourage such academic programs, at law schools and elsewhere, to align themselves further with the agenda of the plaintiff’s securities bar and against the interest of actual shareholders at companies like Apple. I’ve got much more about cy pres law school slush funds in Schools for Misrule, forthcoming. [Future of Capitalism; Jim at PoL]

August 16 roundup

by Walter Olson on August 16, 2010

  • Former producer at “Oprah” show — yearning for the simpler life? — takes job at rough blue-collar outfit. One $500K harassment settlement later… [Des Moines Register]
  • “Insurer writing ‘loser pays’ policies to defendants” [LNL]
  • “$1.4 Million Award Reversed due to Attorney’s ‘Inflammatory’ Comments” [DBR]
  • New book examines shaky evidentiary basis of international criminal law convictions [Nancy Combs]
  • Litigation slush funds, cont’d: new Department of Justice rules steer public settlement money to private advocacy groups [York, Examiner]
  • Second Circuit upholds Judge Weinstein’s steps to curb conspiracy to evade protective order in Zyprexa case [Drug and Device Law, Dan Popeo, NYLJ] More from the busy Dr. David Egilman: “Plaintiff’s Expert Files Appeal in ‘Popcorn Lung’ Lawsuit” [On Point News and more] Also: “Being an Expert Expert Doesn’t Make You an Expert” [Zacher, Abnormal Use]
  • “FTC Seeks to Clarify — and Justify — Its Blogger Endorsement Guidelines” [Citizen Media Law]
  • “Winnebago cruise control” and suchlike urban legends are purposely devised and spread by sinister interests, or so claim L.A. Times and Prof. Turley [five years ago on Overlawyered]

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Arkansas Attorney General Dustin McDaniel has bestowed $100,000 to assist in construction of the Arkansas Fallen Firefighters Memorial on the grounds of the state Capitol. The money came from the settlement of a lawsuit against the Pfizer drug concern, the connection of which to the cause of fallen firefighters is at best obscure. [Arkansas Online]