SB20 Alabama 2010 Session

Summary

Primary Sponsor

Larry MeansMayor

Democrat

Session

Regular Session 2010

Title

Class action lawsuits filed in Alabama, plan for undistributed funds to be distributed to Child Abuse and Neglect Prevention Department if class members cannot be located, or if distribution to class is not economically feasible, or if class members do not make a claim to the class funds

Summary

The bill would require leftover funds from Alabama class action settlements to be redirected to the Children's Trust Fund operated by the Department of Child Abuse and Neglect Prevention, if they are unclaimed or not cost-effective to pay to class members.

What This Bill Does

It requires each class action settlement or judgment to include a plan describing when residual funds will be considered unclaimed and when they will be distributed. At the end of the case, any remaining funds that can’t be distributed to class members (because members can’t be located, distribution isn’t economically feasible, or all members had a chance to claim) must be distributed to the Alabama Department of Child Abuse and Neglect Prevention's Children's Trust Fund, following the plan. The transfer is administered by the department and aligns with existing Alabama law on class actions.

Who It Affects

• Class action plaintiffs and class members in Alabama, who would see residual funds redirected rather than received directly as individuals
• Alabama Department of Child Abuse and Neglect Prevention, which would administer the Children's Trust Fund that receives the residual funds
• The Children's Trust Fund itself (established under Section 26-16-30), as the recipient of leftover class-action funds

Key Provisions

• Section 1: Requires that all class action settlements or judgments creating a common fund include a specific plan for identifying unclaimed residual funds and the timing of transferring those funds to the Children's Trust Fund.
• Section 2: At the conclusion of a class action, residual funds that cannot be distributed to class members (due to unlocatable members, non-economical distributions, or ties to unclaimed funds) must be distributed to the Alabama Department of Child Abuse and Neglect Prevention in accordance with the plan in Section 1.
• Section 3: The act becomes effective immediately after passage and approval by the Governor.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Civil Procedure