SB220 Alabama 2012 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Gerald O. Dial
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 (2012-20467)
Summary: SB220 requires that Alabama class actions with a common fund have a plan to distribute any leftover money to the Department of Child Abuse and Neglect Prevention.
What This Bill Does
If a class action under Alabama law creates a common fund, the final judgment must include a plan for distributing any leftover funds. Residual funds—money that can’t be distributed to class members because they can’t be located, paying individuals isn’t feasible, or after the claim period—must go to the Department of Child Abuse and Neglect Prevention according to that plan. The court may assist settlements and can suspend these requirements if enforcing them would block a settlement, and the act applies to cases filed on or after January 1, 2013, becoming law immediately upon passage.

Who It Affects
Class members in Alabama class actions: depending on the plan, some or all residual funds may go to the Department instead of individuals.
Department of Child Abuse and Neglect Prevention: will receive residual funds from class action common funds under the plan.

Key Provisions
Requires that any Alabama class action that creates a common fund include a plan for distributing residual funds to the Department of Child Abuse and Neglect Prevention.
Defines residual funds as funds remaining undistributed due to unlocated class members, infeasibility of individual payments, or funds remaining after the claim period, and directs these funds to the Department.
Preserves rights to revert residual funds through contract or designated beneficiaries or assignees, where applicable.
Allows a circuit court to assist settlement and potentially suspend the residual-fund requirements if enforcing them would impede settlement.
Applies to cases filed on or after January 1, 2013 and takes effect immediately after passage.

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