Cy Pres

In California or Federal court, when some or all of the funds recovered in a class action cannot feasibly be distributed to class members, cy pres awards can be made to organizations like Public Advocates. A nonprofit organization is deemed an appropriate recipient of cy pres funding if distribution to the organization would “benefit the class or similarly situated persons.” (Cal. Civ. Proc. Code § 384(b)). In non-class action suits, or prior to class certification, settling defendants may also direct all or part of the settlement payments to a non-profit organization.

Public Advocates laid the groundwork for court awards, including cy pres distributions, which play a critical role in allowing nonprofit law firms like ours to continue providing free legal representation to low-income Californians. These awards directly support Public Advocates’ mission to advance systemic solutions to the crisis of rising inequality—through effective court cases and public policy campaigns—focusing  on the building blocks of opportunity.

Learn more:

• Our early landmark case, Serrano v. Priest (Serrano III) in 1977 resulted in the creation of the private attorney general doctrine in California (now codified in CP § 1021.5).
• Our intervening role in Kerner v. Levi Strauss in 1986 helped establish the fundamental cy pres principles followed by courts in consumer class actions.