United States Court of Appeals For the Seventh Circuit
Civil Procedure — class actions — remainder
The district court erred in ordering that unclaimed money from a class action go to a charity.
“Our case did not end in settlement and is not a common-fund situation. Turza did not agree to give up his interest in money unclaimed by class members. The stakes per fax are large enough to make a second round of distribution feasible. And the Legal Assistance Foundation of Metropolitan Chicago does not directly or indirectly benefit certified public accountants, the victims of Turza’s junk faxes. The Foundation is a worthy organization, but many courts have expressed skepticism about using the residue of class actions to make contributions to judges’ favorite charities. See, e.g., In re Lupron Marketing & Sales Practices Litigation, 677 F.3d 21, 31–38 (1st Cir. 2012); Klier v. Elf Atochem North America, Inc., 658 F.3d 468, 475–76 (5th Cir. 2011), and id. at 480–82 (Jones, C.J., concurring); Nachshin v. AOL, LLC, 663 F.3d 1034, 1038– 39 (9th Cir. 2011).”
Affirmed in part, and Vacated in part.
Appeals from the United States District Court for the Northern District of Illinois, Gettleman, J., Easterbrook, J.