State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_1 > GS_1-267_10

Article 26B.

Distribution of UnpaidResiduals in Class Action Litigation.

§ 1‑267.10. Distribution of unpaid residuals in class action litigation.

(a)        It is the intent ofthe General Assembly to ensure that the unpaid residuals in class actionlitigation are distributed, to the extent possible, in a manner designed eitherto further the purposes of the underlying causes of action or to promotejustice for all citizens of this State. The General Assembly finds that the useof funds collected by the State courts pursuant to this section for thesepurposes is in the public interest, is a proper use of the funds, and isconsistent with essential public and governmental purposes.

(b)        Prior to the entryof any judgment or order approving settlement in a class action establishedpursuant to Rule 23 of the Rules of Civil Procedure, the court shall determinethe total amount that will be payable to all class members, if all classmembers are paid the amount to which they are entitled pursuant to the judgmentor settlement. The court shall also set a date when the parties shall report tothe court the total amount that was actually paid to the class members. Afterthe report is received, the court, unless it orders otherwise consistent withits obligations under Rule 23 of the Rules of Civil Procedure, shall direct thedefendant to pay the sum of the unpaid residue, to be divided and creditedequally, to the Indigent Person's Attorney Fund and to the North Carolina StateBar for the provision of civil legal services for indigents. (2005‑420, s. 1.)