What Is Cy Pres Doctrine?

The term cy pres doctrine refers to a legal concept that gives courts the power to interpret the terms of a will, gift, estate, or 澳洲幸运5官方开奖结果体彩网:charitable trust. This doctrine becomes active if there are issues with carrying out the intended wishes or conditions of the original document or if they can't be legitimately interpreted or legally performed. Once in effect, it gives the court the flexibility to understand the donor or testator's perceived intent and implement their wishes.

Understanding the Cy Pres Doctrine

The term cy pres is derived from the old French phrase, cy pres comme possible, which translates to "as close as possible." The term is used in the legal field to suggest that the wishes of a donor or testator be carried out as closely as outlined, whether that's in a will or part of a charitable trust or estate.

When legal issues arise surrounding the distribution of funds making it impossible for whatever reason, the document or trust may become null and void. For instance, if a charity fails and can no longer function or fulfill its objectives, court action may be necessary. Courts can use the cy pres doctrine to save it "from failing."

Under the cy pres doctrine, courts can make their own interpretations to ensure that the desires of a donor, charitable trust, estate, or will are carried out as closely as possible, even if certain changes must be made. For instance, the 澳洲幸运5官方开奖结果体彩网:Internal Revenue Service (IRS) states that a court may "may substitute another charitable object which is believed to approach the original charitable purpose as closely as possible" in the case of a charity.

Special Considerations

Most class action lawsuit settlements find their way into a trust that is created to distribute the awards. The distribution of the windfall may not be distributable, which is something thꦓat happens frequently happens with a lot of settlements. In some cases, claimants may not make their claims or the award amount per claimant is too small to be distributed to each.

These undistributed funds are placed into a cy pres award and allocated to use further. The use of the cy pres doctrine to distribute settlement funds began in 1986 so that unused funds could flow to the next best 澳洲幸运5官方开奖结果体彩网:beneficiary. The next best recipient is often a charitable trust which closely resembles the original reason for the cla𒁏ss action suit.

For instance, let's say a number of individuals file a class-action lawsuit against a tobacco company and the court rules in their favor, awarding them damages. The tobacco lawsuit settlement would flow to the next best charity which promotes tobacco-free lifestyles. Without the use of the cy pres award, unused funds could end up being converted into state funds or even return to the defendant of the class action case—in this case, the tobacco company.

Real-World Example of Cy Pres Doctrine

John Marshall Law School's Pro Bono Litigation Clinic in Chicago was given more than $170,000 in cy pres funds in December 2018. These funds came from a class action Wage Act case involving a class of workers in a claim under the Illinois Wage Act, who were represented by graduates of John Marshall. The cy pres money allowed the Pro Bono Litigation Clinic to start accepting Wage Act cases.

“The Clinic is honored and thankful for being selected as the recipient of the cy pres award,” said Professor J. Damian Ortiz, clinical professor and director of Pro Bono Litigation Clinic in a press release. “We believe that the cy pres award is an invaluable way to advance the interests of laborers and employees throughout Illinois. The Clinic will be able to provide employees legal representation, education, self-claim filings, and continuous legal services.”