Cy Pres

What is Cy Pres?

Cy pres is a French term which means "next best use". In a class action case (and sometimes bankruptcy and probate matters) where funds are unclaimed or cannot be distributed to all class members, the court must decide how to distribute the remaining funds. Under the cy pres principle, the court awards unclaimed funds to organizations that serve people whose situation is similar to the class members who have been harmed. In recent years courts have awarded cy pres funds to programs that provide free legal services to low-income people. Residual funds in class actions are a perfect match for this purpose, as one underlying premise for all class actions is to make access to justice a reality for those who otherwise would not be able to obtain the protections of our justice system.

A New Cy Pres Law Promotes Access to Justice.

Effective July 1, 2008, a new section of the Code of Civil Procedure, 735 ILCS 5/2-807, ensures that, to the extent practicable, residual funds in Illinois class action cases are to be distributed to pro bono and legal aid organizations that improve access to justice for less fortunate residents of Illinois.

• At least 50% of any residual funds in class action cases must go to one or more organizations that promote or provide access to justice for low-income Illinois residents.
• Courts have the discretion to award up to 50% of these funds to other organizations that serve the public good if the court finds good cause to do so.

Prairie State Legal Services -- an Ideal Choice for Cy Pres Awards

• Prairie State Legal Services is eligible to receive cy pres awards because we promote equal access to justice for disadvantaged residents of 36 Northern and Central Illinois counties.
• Prairie State can put cy pres funds to use. Our broad scope of services, wide geographic service area, and diverse client base give us the flexibility to target funds awarded by the court to specific needs or to the broad goals of access to justice for the disadvantaged.
• Our clients share something in common with the members of class action lawsuits. Prairie State clients include the elderly, immigrants, the working poor, and other vulnerable populations. They are often victims of unfair and predatory consumer practices and other injustices similar to those litigated in class action lawsuits.
• Prairie State aids in the fair and efficient functioning of our courts by representing disadvantaged people who normally would be without a lawyer, by coordinating pro bono legal representation, and where representation is not possible, by supporting the development of pro se resource centers.

Cy pres awards have proven to be one of the best means available to help close the justice gap, and help expand the capacity of staff lawyers and volunteer private attorneys to provide legal assistance to the poor. If you are an attorney or a party in a class action lawsuit, you can help make the promise of equal access to justice a reality by requesting the court to direct unclaimed funds to Prairie State Legal Services.

For more information, please contact: Mike O'Connor, Executive Director, at 815.965.2134