Lawyers who handle class action lawsuits can further support legal aid by recommending the IOLTA Committee or a civil legal aid organization as the recipient of cy pres funds.
What are cy pres funds?
When a class action results in monetary awards to class members, there are often funds that cannot be distributed to class members who have moved, choose not to cash their checks, or for other reasons. The cy pres doctrine allows the court to put these residual cy pres funds to their “next best” use by distributing them to charitable organizations that have a positive connection to the subject matter of case, e.g., consumer fraud, or to the class, e.g., consumers in Massachusetts.
The IOLTA Committee is an ideal recipient of cy pres funds in federal and state class actions involving workers, consumers, elder abuse, and many other types of law where there is a need for legal assistance to vindicate the rights of individuals who are not able to afford an attorney and will therefore rely on legal aid programs. Because it does not file lawsuits or represent other parties in court, the IOLTA Committee is free from conflicts. In addition, cy pres funds directed to the IOLTA Committee will stay in Massachusetts and be spread equitably around the Commonwealth.
What does the IOLTA Committee do with cy pres funds?
The IOLTA Committee funds non-profit organizations all over Massachusetts that provide civil legal services to low-income and vulnerable residents and work to improve the administration of justice. In 2021 alone, the IOLTA Committee received almost $600,000 in cy pres awards, which helped to provide critical funding for about 100 organizations across the Commonwealth. We are grateful to the class action lawyers and law firms who made this possible and encourage others to do the same.
Massachusetts Rule Civil of Procedure 23
For class actions pending in Massachusetts state court, Mass. R. Civ. P. 23 permits the IOLTA Committee to receive cy pres funds in any class action and requires notice to the Committee of the proposed distribution of cy pres or other funds. See the Rule 23 Fact Sheet for more information.
While there is no equivalent rule in Massachusetts federal court, the IOLTA Committee is often an appropriate cy pres recipient in federal class actions, too, and has been approved by federal judges.
How can you help?
During this period of low interest rates and surging demand for legal assistance, cy pres funds play a key role in sustaining essential programs throughout the Commonwealth and ensuring more low-income and vulnerable Massachusetts residents receive assistance with their civil legal problems. Class action litigators are in a unique position to help by recommending that the IOLTA Committee or other legal services organization be designated as the cy pres recipient in state and federal class actions.
To learn more about how you can make an impact by directing a cy pres award to the MA IOLTA Committee, contact executive director Jenna Miara at This email address is being protected from spambots. You need JavaScript enabled to view it. or 617-963-9093.