SB8 Alabama 2013 Session

Summary

Primary Sponsor

Gerald O. Dial

Republican

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

SB8 would require that any leftover funds from Alabama class-action settlements with a common fund be distributed to the Department of Child Abuse and Neglect Prevention under a court-approved plan.

What This Bill Does

In Alabama, for class actions that create a common fund, the bill requires a specific plan to distribute any residual funds. Residual funds are those not distributed due to unlocatable class members, infeasible direct payments, or funds remaining after a claims period. All residual funds must be paid to the Department of Child Abuse and Neglect Prevention according to the plan. The act also preserves the rights of parties to revert residual funds through settlement contracts and allows the circuit court to intervene or suspend these requirements if necessary to reach a settlement.

Who It Affects

• Class action plaintiffs and defendants in Alabama whose settlements create a common fund (they are affected by how residual funds are handled).
• The Department of Child Abuse and Neglect Prevention, which would receive any residual funds under the plan.
• Unlocated or unclaimable class members (their potential funds would be redirected to the department).
• Circuit court judges overseeing class actions (they would implement the plan and may suspend requirements to aid settlement).

Key Provisions

• Section 1: Requires every Alabama-class-action order that creates a common fund to establish a plan for distributing any residual funds to the Department of Child Abuse and Neglect Prevention, including timing.
• Section 2: Defines residual funds as undistributed amounts due to unlocatable class members, funds not economically feasible to distribute, funds remaining after all claims are considered, or funds remaining after a set period.
• Section 3: Clarifies that the act does not eliminate the rights of parties to contract for residual funds to revert to the paying party or to designated beneficiaries.
• Section 4: Allows the circuit court to intervene to help settlements and may suspend Section 1 requirements if they hinder settlement.
• Section 5: Applies to class actions filed on or after January 1, 2014.
• Section 6: The act would take effect immediately after its 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