Would cy pres encourage more frivolous class-action lawsuits?
No. Cy pres has no effect on the amount the plaintiff, the class, or te class lawyer receives, so it does nothing to encourage or discourage lawsuits. A jurisdiction is not more “plaintiff favorable” because it has cy pres legislation. The rules are the same in jurisdictions that have cy pres and those that don’t. The legislation does not address the merits of cases, the validity (or invalidity) of a class action, or anything other than the best way to assign the unclaimed funds so they do not remain with the defendant. This legislation is supported by key leaders in the business and corporate defense sectors.
