HB342 Alabama 2014 Session

Summary

Primary Sponsor

Mike Ball

Republican

Session

Regular Session 2014

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

HB342 would require that any leftover funds from Alabama class-action settlements or judgments that create a common fund be paid to the Department of Child Abuse and Neglect Prevention under a court-approved plan.

What This Bill Does

In Alabama-only class actions that create a common fund, the court must establish a plan for distributing any residual funds to the Department of Child Abuse and Neglect Prevention. Residual funds are those that remain undistributed because class members cannot be located, direct distribution to individuals is not economically feasible, or after all claims have been considered. All residual funds must be distributed to the Department according to the plan, and the court may intervene or suspend these requirements to help reach a settlement. The act applies to cases filed on or after January 1, 2015 and becomes effective immediately after passage.

Who It Affects

• Class action plaintiffs and class members in Alabama whose common-fund settlements may leave residual funds, which would be redirected to the Department rather than distributed to individuals.
• Department of Child Abuse and Neglect Prevention, which would receive residual funds from applicable class actions under a court-approved plan.

Key Provisions

• Section 1 requires every Alabama-only class-action settlement or judgment that creates a common fund to establish a specific plan for distributing residual funds to the Department of Child Abuse and Neglect Prevention and specifies when distributions will occur.
• Section 2 defines residual funds as money remaining after benefits to class members are paid, due to inability to locate members, lack of economic feasibility to distribute, or time limits for claims, and requires these funds to go to the Department under the plan.
• Section 3 clarifies that the act does not limit parties’ rights to revert residual funds to the paying party or to designated beneficiaries via contract.
• Section 4 allows the circuit court to intervene to assist settlements and to suspend the Section 1 requirements if those obligations hinder settlement.
• Section 5 states the act applies to cases filed on or after January 1, 2015.
• Section 6 makes the act effective immediately after passage and approval by the Governor.

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