SB4 Alabama 2014 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Gerald O. Dial
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: SB4 would require leftover money from Alabama class action settlements to be paid to the Department of Child Abuse and Neglect Prevention under a court-approved plan.
What This Bill Does
It requires that every Alabama class action creating a common fund include a plan for distributing any residual funds. Residual funds are the money left after all benefits to class members are paid, when members can't be located, or when distributing to individuals isn't economically feasible, or after the claim period ends. Those residual funds would be paid to the Department of Child Abuse and Neglect Prevention according to the plan. The circuit court can intervene to aid settlement and may suspend these requirements if doing so would help reach a settlement, and the act takes effect immediately after passage.

Who It Affects
Class members in Alabama class actions governed by Alabama law, who would see any remaining funds redirected to the Department rather than receiving them individually.
The Department of Child Abuse and Neglect Prevention, which would receive residual funds from class action settlements as specified by the plan.

Key Provisions
Any order entering a full and final judgment in a class action with a common fund must establish a plan for distributing residual funds to the Department of Child Abuse and Neglect Prevention.
Residual funds are defined as money remaining after benefits to class members, due to unlocatable members, infeasible direct distributions, or after the claims period ends; all such funds must be distributed to the Department under the plan.
The act does not limit the rights of parties to contract for reversion of residual funds to the paying party or to designated beneficiaries.
The circuit court may intervene to aid settlement and may suspend Section 1 requirements if they substantially impede settlement.
The act becomes effective immediately after passage and governor’s approval.

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