Jacksonville Area Legal Aid received a more than $37,000 cy pres award resulting from a case in which attorney Max Story of the Story Law Group filed a class action complaint against a local property management company.
According to Funding Florida Legal Aid, the term “cy pres” comes from the French, “cy pres comme possible,” meaning “as near as possible” and the doctrine is often applied in class action cases in which full restitution to all injured parties is either impossible or infeasible, such as when the amount of damage per person is insignificant even though the aggregate damages are large.
Under cy pres, the courts can approve a charitable donation out of unclaimed class action funds or a direct grant in lieu of damages to an organization that could vindicate class member rights in the future. In practice, cy pres prevents a windfall to the defendant while serving to deter future violations.
In this case, the lawsuit alleged that SunCoast Property Management LLC charged tenants unlawful fees after they moved out in violation of the Florida Residential Landlord Tenant Act and the Florida Consumer Collections Practices Act. According to court records, about 1,800 tenants were affected.
As part of a settlement agreement approved by 4th Judicial Circuit Judge Virginia Norton, all affected tenant class members who were charged the fee will receive a waiver of the fee. In addition, all class members who actually paid the fee and did not opt out of the class settlement will receive an additional payment.
The approved settlement comprises more than $775,000 in relief including about $119,000 in monetary compensation and $460,000 in waiver of debt. In addition, current tenants were relieved of $196,250 in potential debt.
Legal aid programs are often the beneficiaries of cy pres awards, as the public interest work they do, including in consumer cases, benefits people who face civil legal issues not unlike those of the class from which the award came.
Story is the Florida cochair of the National Association of Consumer Advocates.
“We are gratified Max thought of JALA in requesting Judge Norton direct the cy pres funds to us,” said JALA CEO Jim Kowalski. “The purpose of cy pres funds is to assist a nonprofit that works to better those who are similar to the class members and obviously JALA with its nationally recognized housing and consumer unit is here to do just that.”
In the order granting final approval of the settlement, Norton approved JALA as the recipient of funds remaining after distribution of the settlement proceeds to affected class members, in accordance with cy pres doctrine.
“Given all the work JALA does to protect the rights of tenants, it seemed it would be the most appropriate beneficiary of the residuals in this case and I am grateful that Judge Norton agreed,” Story said. “More than any other organization in our community, JALA will be able to use these funds to protect those in our community most closely related to the class members in this lawsuit.”
JALA said it plans to use the funds to continue its work assisting tenants who have been assessed unlawful fees and charges.