Cy Pres and Other Court Awards
In 2005, the North Carolina General Assembly passed a statute directing unpaid residuals in class action litigation (unless otherwise ordered by the court) be divided and sent equally to the North Carolina State Bar for the provision of civil legal services for indigents and to the Indigent Persons’ Attorney Fund.
Cy pres, from the French term meaning “as near as possible,” is a doctrine that designates funds that are unclaimed or cannot be distributed at the conclusion of a class action or other case. Directing cy pres funds to legal aid supports access to justice by making legal services available to those who otherwise would not be able to afford an attorney. The distribution of funds to legal aid providers can also occur through mediation, arbitration and settlement agreements. These strategies, along with cy pres awards, are valuable sources of funding for legal aid providers.
NC IOLTA administers the cy pres and other court awards sent to the State Bar for civil legal aid. Those funds should be sent to:
NC IOLTA
PO Box 25996
Raleigh, NC 27611-5996
Related Pages
Manual for Attorneys and Judges on Cy Pres and Other Court Awards
The NC Equal Access to Justice Commission has published a manual, “Cy Pres and Other Court Awards,” to educate judges and attorneys as to the importance of such awards to legal aid organizations. The manual includes information on different types of court awards, tips for structuring award agreements, examples of awards and a primer on how to structure a cy pres settlement.
