HB412 Alabama 2013 Session

Summary

Primary Sponsor

Chris EnglandRepresentative

Democrat

Session

Regular Session 2013

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 class-action settlements in Alabama with a common fund to have a plan for distributing leftover funds, directing any remaining money to the Department of Child Abuse and Neglect Prevention.

What This Bill Does

If passed, the bill forces every Alabama class-action settlement that creates a common fund to specify how any residual funds will be distributed. It defines residual funds as money that remains undistributed because class members can’t be located, direct distribution isn’t economical, or after everyone had a chance to claim and the claim period ends. All residual funds would be distributed to the Department of Child Abuse and Neglect Prevention according to the plan. The circuit court can intervene to help settlements and may suspend these requirements if they block settlement. The act applies to cases filed on or after January 1, 2014 and takes effect once the governor signs it.

Who It Affects

• Group 1: Class action plaintiffs, defendants, and class members in Alabama — their leftover funds from a common fund would be redirected to the Department of Child Abuse and Neglect Prevention under a mandated plan.
• Group 2: Department of Child Abuse and Neglect Prevention — would receive residual funds from class-action common funds, as specified by the plan.

Key Provisions

• Section 1: Any Alabama-class-action with a common fund must establish a specific plan for distributing residual funds, and any remaining funds after paying benefits to class members shall be paid to the Department of Child Abuse and Neglect Prevention.
• Section 2: Defines residual funds as undistributed funds due to unlocated class members, funds not economically feasible to distribute directly, funds remaining after all members have had a chance to claim, or funds remaining after the claim period ends; all such funds go to the Department consistent with the plan.
• Section 3: Clarifies that nothing in the act limits other rights to revert residual funds to paying parties or designated beneficiaries via settlement contracts.
• Section 4: The circuit court may intervene to assist settlement efforts and may suspend the plan requirements if following them would substantially impede settlement.
• Section 5: The act applies to cases filed on or after January 1, 2014.
• Section 6: The act becomes effective immediately after the governor signs it.

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