The Rules Advisory Committee Study Agenda – Cy Pres

Cy pres is an occasionally useful tool.  But limiting or eliminating it would clarify the underlying principles of the class action.    

In the last five years, the use of cy pres relief in settlements has become particularly controversial.  Various appellate courts have expressed suspicion about the use of cy pres in questionable settlements.  Even Justice Roberts has signaled that, given the right vehicle, he would like the Supreme Court to review the fairness of cy pres distributions.  Much of the controversy stems from two issues: (1) the potential for abuse of cy pres relief to inflate the value of bad settlements, and (2) the underlying philosophical justifications for allowing cy pres distributions.