CCAF attorneys object to settlements with two airlines because the settlements do not explain how class members will be compensated, and the money might be diverted to third party cy pres beneficiaries.
In January 2019, CCAF will become part of the new Hamilton Lincoln Law Institute, a free-market nonprofit public-interest law firm created by CEI/CCAF litigators Ted Frank and Melissa Holyoak.
"We think the court got it half right," attorney Adam Schulman, who argued the CEI's position before the appeals court, told the Northern California Record, adding that the remanding of the attorney fees was welcome, but it still allowed millions of dollars to be disbursed to non-class members. The institute objects to the way the "cy pres" doctrine is used in class actions.
Class member and CCAF attorney Adam Schulman objected to a slack fill settlement that provides class members with worthless labeling changes.
Today the U.S. Supreme Court heard arguments in a landmark case brought by the Center for Class Action Fairness (CCAF) challenging an unfair class action settlement in which lawyers and their hand-picked universities and pet causes got millions while class members got nothing.
No one has a precise count of the class action settlements that include cy pres payments, and Frank said many may be included in quiet agreements that are never disclosed to the class. Federal courts dispose of about 275,000 cases a year, with 350 of them class actions.
"This case is really about attorneys selling out their clients," Holyoak told the Washington Free Beacon. "We are arguing that this is unfair, and this is an abuse of the class action system, and an abuse of the cy pres system."
The who, what, why, and how of CCAF's Supreme Court argument.
Enter Ted Frank and Melissa Holyoak, who objected to the settlement. They argued that the distribution of funds violates the federal rule for civil procedures that a class-action settlement be “fair, reasonable, and adequate.” The class counsel must also “fairly and adequately represent the interests of the class.”
"The fact that legal aid organizations do good things and could use the money doesn't justify the means," said Frank, who is also director of the Center for Class Action Fairness at the Competitive Enterprise Institute.
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