When there’s a settlement in a class action lawsuit, any unclaimed funds in the award often go right back to the defendant. Not so in the case against Grange Mutual Insurance. Last year, the Columbus company settled with policyholders who claimed they were billed extra premiums. But of the $30 million dollars awarded, only about half was claimed, and now the law firm that won the case is dividing the $14 million left over among 34 Ohio charities. Dworken & Bernstein partner Patrick Perotti brought the case, and is now distributing the money under the so-called Cy Pres doctrine. He says these organizations are about to get a nice surprise.
PEROTTI: The amount these organizations will be getting is a total that’s going to be life-changing in how these organizations operate. We’re not talking about a few thousand dollars.
Among the nonprofits benefiting from the settlement are the Cleveland Scholarship Fund, the Legal Aid Society, and Mothers Against Drunk Driving. Perotti says he hopes this award will encourage other law firms to use Cy Pres.