Most lawsuits seek compensation for expenses incurred and income lost as the result of an injury-inducing event, with claims often resolved through settlement agreements.
Trial lawyers spend millions advertising themselves to attract potential clients. But frivolous litigation drains resources, hinders innovation and drives up prices of products and services we rely on every day.
Class Action Settlements
Class action lawsuits often end in large lump-sum or structured settlement payments that are distributed over time. Most settlements are paid out by lawyers who take a percentage of the overall payout as their legal fees; generally speaking these costs are kept to within reasonable amounts by court order.
The remainder of the money is then typically distributed among class members; however, many fail to claim their portion due to complex procedures or inaccurate contact details.
Leftover funds may go in various directions, including returning to the defendant (if there was a lawsuit over privacy violations by tech companies) or being distributed as Cy Pres Awards which will give it to third-party charities who benefit class members indirectly or support issues pertaining to the original lawsuit. To avoid leaving money on the table it’s crucial to regularly visit settlement websites, keep your contact info updated, and respond swiftly when notifications arrive.
Unclaimed Settlement Funds
Civil lawsuits allow injured parties to seek financial recompense for injuries sustained due to an accident, which can cover medical bills, lost wages and living expenses as well as emotional distress or pain and suffering damages.
Settlement amounts are usually agreed to between the victim and defendant’s insurance company or legal representatives, then distributed via check to them. Attorneys usually subtract their contingency fees, court costs and medical liens prior to dispersing any leftover funds to victims.
Courts have become more vigilant over time about how cy pres distributions are carried out in class action settlements, leading to an increasing body of case law that suggests parties should carefully draft settlement agreements and select recipients who meet the purpose of cy pres distributions while also having some connection to any direct harms alleged in the settling lawsuit.
Liens
Liens are legal rights that allow creditors to gain access to your property if you fail to repay debts owed them. While some liens, like mortgage liens, are voluntary in nature, others such as judgment and statutory liens can become legally enforceable against your assets if payment arrangements don’t go as expected.
Unsecured creditors generally must first file and win a lawsuit before being granted lien rights. Once granted these rights, they can place a lien against your assets–real estate and personal alike. Banks and credit card companies commonly place liens as security against loans they issue while contractors who perform work can place mechanic’s liens against property they work on.
Government entities impose liens, such as income and property taxes. If you owe these liens, they will need to be cleared before your lawyer can disperse settlement funds. Thankfully, debt repayment and filing appropriate legal procedures are both options available to remove these liens; additionally, your attorney will advance costs in order to help achieve an optimal result; those fees will then be deducted from settlement funds once all liens have been satisfied.
