HB558 Alabama 2012 Session

Summary

Primary Sponsor

John Merrill

Republican

Session

Regular Session 2012

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

Requires that leftover funds from Alabama class-action settlements be paid to the Department of Child Abuse and Neglect Prevention under a court-approved plan when class members cannot be located, cannot be paid economically, or after a claims period.

What This Bill Does

If enacted, the bill requires a court-approved plan to distribute any residual funds from a class-action common fund to the Department of Child Abuse and Neglect Prevention. It defines residual funds as money that remains undistributed because class members cannot be located, distributions to individuals are not economically feasible, or after the claims period has ended. It also allows settlements to proceed with certain rights to revert funds and lets courts assist settlements, with the act applying to newer cases and taking effect immediately.

Who It Affects

• Class members and settlement defendants in Alabama-based class actions, who may have their leftover funds redirected to the Department if funds cannot be distributed or claimed.
• Department of Child Abuse and Neglect Prevention, which would receive residual funds from class-action settlements under the bill's plan.

Key Provisions

• Residual funds from a class action common fund must be distributed to the Department of Child Abuse and Neglect Prevention under a court-approved plan.
• Residual funds include undistributed money due to unlocatable members, non-economically feasible distributions, or funds remaining after the claims period; the act applies to cases filed on or after January 1, 2013 and takes effect immediately.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Civil Procedure