In class action litigation, under the cy pres doctrine, unallocated, unclaimed or undeliverable funds are directed to the next best use. California Code of Civil Procedure § 384(b) authorizes the trial court to direct residual funds to nonprofit organizations providing civil legal services to the indigent, or nonprofit organizations to support projects that will benefit the class or similarly situated persons.
Because the Legal Aid Foundation of Los Angeles combats harms similar to those litigated in class action lawsuits, LAFLA is a singularly appropriate recipient of cy pres funds. With over 2 million people in our service area who are income-eligible for assistance, there is a huge unmet need for the kind of services LAFLA offers. Many of our clients are low-income consumers who are victims of unfair, deceptive, discriminatory or predatory practices involving trade schools and student loans, mortgage lending and home equity, insurance and health care, and banking and credit.
For more information, please contact Clara Chiu-Torres at 323-801-7929 or email CChiu-Torres@lafla.org.