The Legal Aid Foundation of Colorado’s mission of improving access to civil justice for those who might otherwise be unable to access the court system makes it an ideal candidate for class action cy pres awards.
What is Cy Pres?
Cy pres funds, also know as ‘residual funds’ or ‘undistributable funds’, are funds in class action cases that, for a variety of reasons, cannot be distributed to class members or beneficiaries who were the intended recipients. Under the cy pres doctrine, courts can distribute these residual funds to appropriate charitable causes that benefit people similarly situated to class members. The term cy pres is derived from the French ‘cy pres comme possible‘, meaning as near as possible. The legal doctrine was borrowed from trust law doctrine.
What are the rules for Cy Pres funds in Colorado?
Colorado has a rule specifying how cy pres funds resulting from state court class actions must be handled. Pursuant to Colorado Rule of Civil Procedure 23(g)(2), at least 50% of any cy pres award must be directed to the Colorado Lawyer Trust Account Foundation (COLTAF) to support activities and programs that promote access to the civil justice system for low income residents of Colorado. COLTAF is our sister organization, we share a staff and work together closely to improve access to the justice system. Our team will be happy to help you direct the remaining 50% of a cy pres award to the Legal Aid Foundation.
What about cy pres funds from federal court cases?
The Legal Aid Foundation is also an appropriate recipient for cy pres funds from federal court cases. This includes both class action cases that were filed in the United States District Court of Colorado and class action cases filed in other districts whose class members included residents of Colorado. If your class action included class members from multiple states, we can work with you to direct a proportional amount of the cy pres award to Colorado.
How do I remit cy pres funds to the Legal Aid Foundation of Colorado?
Thank you for directing a cy pres award to legal aid! Please send a check payable to “Legal Aid Foundation of Colorado” to 1600 Broadway, Suite 1400 Denver, Colorado 80202. Include “Cy Pres Award” and the case name and number in the memo line.
How can I get help with distributing cy pres funds?
For more information contact Jordan Bates-Rogers, Executive Director. You can also call us at 719.603.2001.