# Amicus Curiae Brief — Frank v. Gaos, 138 S. Ct. 1697 (2018) (No. 17-961)

> Briefs, arguments, decisions, and more.

URL: https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385016_0805%3A08

## Record

- **Collection:** Supreme Court brief
- **Document type:** Amicus Curiae Brief
- **Published:** January 1, 2018

## Text

No. 17-961

In the

Supreme Court of the Anited States

THEODORE H. FRANK, et ai.,
Petitioners,
Vv.

PALOMA GAOS, et al.,

Respondents.

ON PETITION FOR A WRIT OF CERTIORARI
TO THE UNITED STATES COURT OF APPEALS
FOR THE NINTH CIRCUIT

BRIEF OF AMICUS CURIAE CENTER
FOR CONSTITUTIONAL JURISPRUDENCE
IN SUPPORT OF PETITIONERS

JOHN C, EASTMAN
Counsel of Record

ANTHONY T. CASO

Center for Constitutional

Jurisprudence

c/o Dale E. Fowler School of Law

Chapman University

One University Drive

Orange, CA 92866

(877) 855-3330

jeastman@chapman.edu

Counsel for Amicus Curiae for
Center for Constitutional Jurisprudence
ST

i
QUESTIONS PRESENTED

The petition for writ of certiorari asks whether the
requirement of Federal Rule of Civil Procedure
23(e)(2) that a binding class action settlement be “fair,
reasonable, and adequate” can be interpreted in such
a way as to permit a settlement that provides no relief
to unnamed class members but only provides cy pres
awards to third parties not involved in the litigation
or in any way harmed by the conduct of the defendant
as alleged in the complaint. Amicus believes that the
answer to that question of statutory interpretation
should be informed by this Court’s constitutional
avoidance doctrines, because such an interpretation
would raise significant constitutional issues, includ-
ing:

1. Whether a binding class action settlement that
redirects remedial compensation away from class
members to unharmed third parties because of the
causes they represent amounts to compelled speech
in violation of the First Amendment?

2. Whether allowing class counsel and the judge
presiding over the class action case to determine
which third party organizations will receive cy pres
awards redirected from class members creates an ir-
reconcilable conflict between class counsel and class
members, and deprives class members of an unbiased
judge, in violation of core Due Process concerns?

3. Whether a class action settlement that provides
compensation only to uninjured third parties, and
none to the class members injured by the conduct al-
leged in the case, exceeds the case or controversy lim-
its on the Article III jurisdiction of the federal courts?

TABLE OF CONTENTS
QUESTIONS PRESENTED ......................--...-0eccceeeeeees i
TABLE OF AUTHORITIEG........................c.-s00eccceeee0 iii
INTEREST OF AMICUS CURIAE........0000................. l
I ispptentitiinniemnnnienmennadnenmanen 1
SUMMARY OF ARGUMENT... cece 4
SERED ceintnncaccnctnmnanentennssnnretenpesnantonenenenenetnsicanen 5

|. Interpreting Rule 23(e)(2) to Permit a Binding
Settlement that Redirects Class Action
Settlement Funds From Class Members to Third
Parties (Often Advocacy Groups) Would Raise
Serious First Amendment Concerns. .................... 5

Il. Allowing Class Counsel and the District Court to
Redirect Class Members’ Remedial Settlement
Funds to Non-Parties Favored by Them Raises
Serious Due Process Concerns. ............................. 7

L1.The Ninth Circuit's Interpretation of Rule 23(e)(2)
Also Raises Significant Article III Case or
ER 10

NEED Srestpnscensensemecnsdinscsensensmsesipmensenuinndennts 13

TABLE OF AUTHORITIES

Cases
Abood v Detroit Board of Education,

I a maceetiiedicial 6
Allen v. Wright,

EE ES ae eeeenoeee 10
Baker v. Carr,

EE er 10
Caperton v. A.T. Massey Coal Co.,

ia sseteesienlasinssinnstilabesiod 9
Chicago Teachers Union v. Hudson,

EE TS 6
Diamond Chemical Co. v. Akzo Nobel Chemical. B.V.,

517 F.Supp.2d 212 (D.D.C 2007)..............0.0.00....... 11
Everson v. Board of Education,

EE eS 6
Friedrichs v. California Teachers Association,

ST Eee l
Harris v. Quinn,

EE eee l
In re Baby Prods. Antitrust Litig.,

708 F.36 168 Ged Cir. 3019), .............................222.. 2
In re BankAmerica Corp. Securities Litig.,

775 F.3d 1060 (8th Cir. 2015) ....................-.c22c00000-- 3
In re Lupron Marketing and Sales Practices Litig.,

295 F Supp.2d 148 (D. Mass. 2003) ........................ 2
In re Murchison,

Ny See I entiicinnsnnennnipisineddcnvasenectanimsstensiol 8,9

iv

In re Pharm. Indus. Average Wholesale Price Litig.,

230 F.R.D. 61 (D. Mass. 2005)................... 2
Janus v. Am. Fed'n,

138 S. Ct. 54 (cert. granted Sept. 28, 2017)... 6
Keller v. State Bar,

EEA Ths a ee Se 6
Klier v. Elf Atochem N. Am., Inc.,

658 F.3d 468 (5th Cir. 2011)... 2,12
Knox v. Service Emp. Internat'l Union Local 1000,

ea I
Lane v. Facebook, Inc.,

696 F.3d 811 (9th Cir.2012) 2
Miller v. Steinbach,

268 F Supp. 255 (S.D.N.Y 1974) 0 1
Pearson v. NBTY, Inc.,

ee nee 3
Radcliffe v. Hernandez,

818 F.3d 537 (9th Cir. 2016)... 7
Sierra Club v. Morton,

I 11

United States ex rel. Houck v Folding Carton Admin.
Comm..,
881 F.2d 494 (7th Cir. 1989) 0. 2

Valley Forge Christian College v. Americans United
for Separation of Church and State, Inc.,

Warth v. Seldin,
| _ 10

Wood v. Georgia,
| ARC TOE aS DN 7

Other Authorities

Am. L. Inst., Principles of the Law of Aggregate
Litigation $3.07) GROIGE)..........ccccccoccccccccccccssescseseeee 5

Boies, Wilber H., and Keither, Latonia Haney, Class
Action Settlement Residue and Cy Pres Awards:
Emerging Problems and Practical Solutions,

21 Va. J. Soc. Pol'y & L. 267 (2014) ........000.00000000.... 1
Liptak, Adam, Doling Out Other People's Money,
N.Y. TIMES (Nov. 26, 2007)........................ 9, 10, 11

Redish, Martin H. et al., Cy Pres & the Pathologies
of the Modern Class Action: A Normative and
Empirical Analysis, 62 Fla. L.Rev., 617 (2010)....12

Shiel, Cecily C., A New Generation of Class Action Cy
Pres Remedies: Lessons from Washington State,

90 Wash. L. Rev. 943, 951 (2015)... 5
Ted Frank, Cy Pres Settlements, Center for Class
Action Fairness LLC, (D-15) ...................ccccecceeeeeeeee 9
Thomas Jefferson, A Bill for Establishing Religious
SSS SES irra cnanr whe Weer 6
Rules
ff ETE eee SA passim
I ne 1

RE SI ERS eer 1

]

INTEREST OF AMICUS CURIAE!

The Center for Constitutional Jurisprudence is the
public interest law arm of the Claremont Institute,
whose stated mission is to restore the principles of the
American founding to their rightful and preeminent
authority in our national life, including the funda-
mental separation of powers principles implicated by
this case. The Center has previously appeared before
this Court as amicus curiae in several cases address-
ing compelled speech issues similar to those at issue
here, including Friedrichs v. California Teachers As-
sociation, 136 S. Ct. 1038 (2016); Harris v. Quinn, 134
S. Ct. 2618 (2014); and Knox v. Service Employees In-
ternational Union Local 1000, 567, U.S. 298 (2012).

INTRODUCTION

The cy pres doctrine originated in estate law and
trusts, but in 1974, the U.S. District Court for the
Southern District of New York applied the cy pres doc-
trine in a class action settlement setting. Wilber H.
Boies and Latonia Haney Keither, Class Action Settle-
ment Residue and Cy Pres Awards: Emerging Prob-
lems and Practical Solutions, 21 Va. J. Soc. Pol'y & L.
267, 270 (2014). In Miller v. Steinbach, the district
court noted that, in implementing a settlement agree-
ment between the parties, it “applifed] a variant of the
cy pres doctrine at common law.” Miller v. Steinbach,
268 F.Supp. 255 at 3-4 (S.D.N.Y 1974). Since then, cy

' Pursuant to Rule 37.2(a), all partier were noti‘ied of and have
consented to the filing of this brief. [n accordance with Rule 37.6,
counsel affirms that no counsel for any party authored this bref
in whole or in part and that no person or entity other than amici
made a monetary contribution to fund the preparation and sub-
mussion of this brief.

2

pres awards have been used as a form of remedy in
class actions. See Lane v. Facebook, Inc., 696 F.3d 811
(9th Cir. 2012); In re Lupron Marketing and Sales
Practices Litig., 295 ¥F Supp.2d 148 (D. Mass. 2003).

There are three categories of class action settle-
ments in which cy pres awards might be applied. First
is the situation, at issue in Miller, in which all of the
plaintiffs who have submitted claims have been fully
compensated for their injuries, but excess funds re-
main because the size of the settlement fund (or, more
precisely, the number of people who would file claims
against the fund) was overestimated. The Third Cir-
cuit has held that a federal district court “does not
abuse its discretion by approving a class action settle-
ment agreement that includes a cy pres component di-
recting the distribution of excess settlement funds to a
third party to be used for a purpose related to the class
injury.” In re Baby Prods. Antitrust Litig., 708 F.3d
163, 172 (3rd Cir. 2013) (emphasis added); see also In
re Pharm. Indus. Average Wholesale Price Litig., 230
F_R.D. 61 (D. Mass. 2005); United States ex rel. Houck
v. Folding Carton Admin. Comm., 881 F.2d 494, 502
(7th Cir. 1989) (recognizing that the court has broad
discretion in identifying appropriate uses of cy pres
distribution of residual settlement funds); but see
Klier v. Elf Atochem N. Am., Inc., 658 F.3d 468, 482
(5th Cir. 2011) Wones, J., concurring). Faced with ex-
cess funds, the courts in this situation have utilized
the cy pres award as an alternative to providing a
windfall to the already-compensated class plaintiffs or
a refund to the tortfeasor defendant that could under-
mine the deterrent effect of the settlement.

3

The second situation arises when the settlement
did not fully compensate class plaintiffs for their inju-
ries, and because of a lower-than-expected rate of
claims against the fund, there is an excess. As in cat-
egory one, refunding the excess to the tortfeasing de-
fendant could undermine the deterrent effect of the
settlement. But the question remains: Should the ex-
cess funds at least first be distributed to the class
plaintiffs who had filed claims up to the point where
they are fully compensated, with any remaining ex-
cess distributed via a cy pres award, or should all of
the excess funds be distributed via a cy pres award?
Problems of proof (i.e., is “full compensation” what is
alleged in the complaint, or something else?) and ben-
efit of the bargain concerns (i.e., the claim-submitting
class plaintiffs already got what they agreed to by way
of the settlement) regarding what constitutes full
compensation might tilt the balance toward the latter,
but either way, the cy pres award is only made once
class plaintiffs have received some measure of com-
pensation for their injuries. See Pearson v. NBTY,
Inc., 772 F.3d 778 (7th Cir. 2014); In re BankAmerica
Corp. Securities Litig., 775 F.3d 1060 (8th Cir. 2015).

The third situation, at issue here, is where the cy
pres award is made in lieu of compensation to the class
plaintiffs. This third category fails to provide plain-
tiffs with any relief, much less adequate relief, and in-
stead rewards nonparties who admittedly suffered no
harm from defendant’s conduct, raising serious consti-
tutional concerns. The settlement here was $8.5 mil-
lion, but of that, only a few thousand dollars was pro-
vided to the named plaintiffs as “incentive awards.”
$2.125 million was awarded to class counsel (more
than double its lodestar), and the bulk of the settle-
ment, $5.3 million—was provided to nonparties via a

4

cy pres award. No compensation whatsoever—not
damages, or nominal damages, or even coupons, and
not even a change in practices by the defendant—-was
provided to any of the estimated 129 million unnamed
members of the class.

SUMMARY OF ARGUMENT

The Ninth Circuit's ruling raises serious constitu-
tional issues that should inform this Court's determi-
nation of whether Rule 23(e)(2) can be interpreted to
permit such a settlement. First, by directing the set-
tlement funds away from unnamed members of the in-
jured plaintiff class to advocacy groups such as AARP,
Inc. and the World Privacy Forum, the ruling effec-
tively forces those plaintiffs to provide financial sup-
port to organizations with which they may not agree,
in violation of the First Amendment's prohibition on
compelled speech. Second, by allowing class counse!
and, worse, the judge, to determine which causes will
be supported by the cy pres award, the Ninth Circuit's
ruling exacerbates the potential conflict of interest be-
tween class counsel and unnamed members of the
class, and undermines the judge’s role as an unbiased
adjudicator, all in violation of core Due Process prin-
ciples. And finally, by redirecting compensatory relief
away from those who were injured to those who ad-
mittedly suffered no injury by defendant’s actions, the
Ninth Circuit’s ruling raises serious questions about
whether there remained a viable case or controversy
necessary for Article [II jurisdiction. Quite simply,
the cy pres award recipients have no standing because
they have not suffered any injury, and those who do
have standing—the unnamed members of the class
who suffered injury—not only receive no remedy but
are forever foreclosed from obtaining relief.

5

ARGUMENT

I. Interpreting Rule 23(e)(2) to Permit a Bind-
ing Settlement that Redirects Class Action
Settlement Funds From Class Members to
Third Parties (Often Advocacy Groups)
Would Raise Serious First Amendment Con-

cerns.

The cy pres settlement at issue in this case redi-
rects class action settlement funds from unnamed
class members to outside organizations, including ad-
vocacy organizations, that admittedly were not in-
jured by the defendant’s conduct. The lower courts ap-
proved the settlement by utilizing a nexus require-
ment developed in the context of cy pres awards of ex-
cess funds, namely, that there by “some connection ...
between the interests of the class members and the
proposed charitable recipient of the funds.” Cecily C.
Shiel, A New Generation of Class Action Cy Pres Rem-
edies: Lessons from Washington State, 90 Wash. L.
Rev. 943, 951 (2015). See Am. L. Inst., Principles of
the Law of Aggregate Litigation §3.07(c) (2010) (sug-
gesting that settlement funds should be awarded to
those “whose interests reasonably approximate those
being pursued by the class”). However, before any cy
pres awards are distributed, the recipients must be
approved by the court.

But in the context of a case such as this, the redi-
recting of compensatory funds (rather than just excess
funds) from class members to nonparty entities effec-
tively appropriates damages rightly due to the class
members for injuries they suffered, to advocacy organ-
izations that had no such harms and that are commit-
ted to advocating for causes that particular class
members might not approve. In effect, class members

6

are forced by the terms of the settlement to support
speech and advocacy activity chosen by class counsel
and approved by the judge, with remedial funds that
by rights should have been paid to them.

In other words, the settlement at issue here com-
pels unnamed class members to support causes advo-
cated by AARP and the World Privacy Forum—com-
pelled speech not unlike that at issue in Janus v. Am.
Fed'n, 138 S. Ct. 54 (cert. granted Sept. 28, 2017), cur-
rently pending before this Court. Interpreting Rule
23(e)(2) to allow for such a settlement therefore raises
the same kind of First Amendment concerns that are
at issue there.

Quite simply, such compelled speech is contrary to
the original understanding of the First Amendment.
The founding generation voiced its concerns through
debates over compelled financial support of churches
in Massachusetts and Virginia, the Virginia debate
being the most famous. And this Court has often
quoted Jefferson's argument that “to compel a man to
furnish contributions of money for the propagation of
opinions which he disbelieves and abhors is sinful and
tyrannical.” Thomas Jefferson, A Bill for Establishing
Religious Freedom (1779), in 5 The Founders Consti-
tution, University of Chicago Press (1987) at 77
(quoted in, e.g., Keller v. State Bar, 496 U.S. 1, 10
(1990); Chicago Teachers Union v. Hudson, 475 U.S.
292, 305, n.15 (1986); Abood v Detroit Board of Edu-
cation, 431 U.S.209, 234-35 n.31 (1977); Everson v.
Board of Education, 330 U.S. 1, 13 (1947)). Jefferson
went on to note “[t]hat even forcing him to support
this or that teacher of his own religious persuasion, is
depriving him of the comfortable liberty of giving his
contributions to the particular pastor whose morals he

7

would make his pattern.” Jefferson, Religious Free-
dom, supra at 77.

Although these statements were made in the con-
text of compelled religious assessments, these same
principles can be applied to compelled financial sup-
port of court-e:.dorsed cy pres recipients. The petition-
ers in this case objected to the recipients of the cy pres
award because the awards were given to organiza-
tions already being supported by Google. Pet. App 13.
Additionally, Petitioner argued that “[t]he AARP
takes political positions opposed by many class mem-
bers, including” Petitioner. Pet. App. 131. Requiring
the petitioner to give their settlement funds to AARP
to engage in advocacy with which Petitioners disa-
greewould violate their First Amendment rights. Ac-
complishing the same thing by way of a cy-pres-only
settlement does not obviate the First Amendment
problem.

Il. Allowing Class Counsel and the District
Court to Redirect Class Members’ Remedial!
Settlement Funds to Non-Parties Favored
by Them Raises Serious Due Process Con-
cerns.

The Ninth Circuit’s interpretation of Rule 23(e)(2)
to permit the type of cy-pres-only settlements at issue
here raises two significant Due Process concerns.
First, it creates (or exacerbates) an inherent conflict
of interest between class counsel and the members of
the class they supposedly represent. See, e.g., Rad-
cliffe v. Hernandez, 818 F.3d 537, 545 (9th Cir. 2016);
cf. Wood v. Georgia, 450 U.S. 261, 271 (1981). Second,
to the extent the court itself participates in the desig-
nation of the of the cy pres award recipients, class
members are deprived of a neutral adjudicator—a

8

core requirement of due process. See, e.g., In re Mur-
chison, 349 U.S. 133, 136 (1955); see also Henry J.
Friendly, “Some Kind of Hearing,” 123 Univ. Penn '..
Rev. 1267, 1279 (1975).

Regarding the conflict of interest between class
counsel and class members, it is commonplace that
the interest of the class counsel and the mem) rs of
the class do not always coincide. Ted Frank, Cy Pres
Settlements, Center for Class Action Fairness LLC.”
In a Sears class action case, for example, the “plain-
tiffs’ attorneys received about $1 million, while the 1.5
million member class redeemed claims at under a
0.1% rate for a total of $2,402.” Jd. A similar situation
arises in this case. The few named class plaintiffs re-
ceived “incentive awards” totaling $15,000 and the
rest of the 129 million members of the class received
nothing, while the attorneys were awarded $2.125
million. Pet. App. 54-55. Furthermore, the class coun-
sel assisted in selecting the organizations that would
be the recipients of the the recipients of the cy pres
awards and chose the following: World Privacy Fo-
rum; Carnegie Mellon University; the Center for In-
formation, Society and Policy at Chicago-Kent College
of Law; the Berkman Center for Internet and Society
at Harvard University; the Stanford Center for I nter-
net and Society; and AARP. Pet. App. 5. The three
schools selected (Chicago-Kent College of Law, Har-
vard University, and Stanford) were all alma maters
of the class counsel, Pet. App. 25-26, raising a signifi-
cant appearance that class counsel had negotiated a
settlement that benefit their own charitable purposes

* Available at httpse://www.americanbar.org/con-
tent/dam/aba/administrative/litigation/materials/2016_sac/writ-
ten_materials/6_cy-pres_settlement.authcheckdam. pdf.

9

to the detriment of remedial compensation claims by
the class members they represented.

As for the concern about a non-neutral adjudicator,
“i]t is axiomatic that ‘[a] fair trial in a fair tribunal is
a basic requirement of due process.” Caperton v. A.T.
Massey Coal Co., 556 U.S. 868, 876 (2009) (quoting /n
re Murchison, 349 U.S. 133, 136 (1955)). For there to
be a fair tribunal, the judge must be neutral, for “no
man can be a judge in his own case,’ and ‘no man is
permitted to try cases where he has an interest in the
outcome.” Caperton, 556 U.S. at 876 (quoting Murchi-
son, 349 U.S. at 136).

A news account from the New York Times about a
decade ago highlights the problem. “Judges all over
the country have gotten into the business of doling out
leftover class-action settlement money,” the Times re-
ported, “sometimes to an organization only tangen-
tially related to the subject of the lawsuit.” Adam Lip-
tak, Doling Out Other People's Money, N.Y. TIMES,
A14 (Nov. 26, 2007).° For example, there was $6 mil-
lion of unclaimed settlement funds left from an anti-
trust class action lawsuit brought by a group of models
against their modeling agencies. Jd. The federal judge
overseeing the case interviewed applicants for the ex-
cess funds and gave such funds to organizations only
“tangentially related to the subject of the lawsuit.” /d.
There has also been a case of “a newly created charity
where the judges who approved the settlement and
three of the plaintiffs attorney sat as board members,
each receiving tens of thousands of dollars for their
services.” Ted Frank, Cy Pres Settlements, Center for

5 Available at http://www.nytimes.com/2007/1 1/26/washing-
ton/26bar. html.

10

Class Action Fairness LLC, (D-15), supra n. 2. Indeed,
in what the Times described as an “unseemly” devel-
opment, various charities organizations now lobby
judges in order to get funds from class settlements.
Litpak, supra, n. 3. And as a result, there is now a
significant risk that the supposedly neutral adjudica-
tor will be tempted to approve cy-pres-only settle-
ments that benefit his or her preferred charities, to
the detriment of the interests of class members who
receive nothing from the settlement the judge ap-
proves.

These are not isolated incidents; they are becoming
more prevalent with class action settlements.
Whether Rule 23(e)(2) can be interpreted to permit
such settlements, despite the significant Due Process
concerns raised by them, is an issue that should be
addressed by this Court.

Ill. The Ninth Circuit's Interpretation of Rule
23(e)(2) Also Raises Significant Article II!
Case or Controversy Concerns.

Article III “confines the federal courts to adjudi-
cating actual ‘cases’ and ‘controversies.” Allen v.
Wright, 468 U.S. 737, 750 (1984) (citing Valley Forge
Christian College v. Americans United for Separation
of Church and State, Inc., 454 U.S. 464, 471-76
(1982)). To determine whether there is actual case or
controversy, courts look to standing doctrine to deter-
mine “whether the plaintiff has ‘alleged such a per-
sonal stake in the outcome of the controversy’ “as to
warrant his invocation of federal-court jurisdiction to
justify exercise of the court’s remedial power on his
behalf.” Warth v. Seldin, 422 U.S. 490, 498-99 (1975)
(Baker v. Carr, 369 U.S. 186, 204 (1962). Further-
more, standing will only be found if “[plaintiff] can

11

show that he himself has suffered or will suffer injury
whether economic or otherwise.” Sierra Club v. Mor-
ton, 405 U.S. 727, 728 (1972).

The class action settlement approved by the Ninth
Circuit below does not involve the exercise of the
court’s remedial power on “behalf” of unnamed class
members, because it provided no relief to them. Nor
did the cy pres recipients of the settlement funds have
a “personal stake in the outcome” of the litigation, be-
cause they were not even parties to it and had alleged
no injury. The Ninth Circuit’s interpretation of Rule
23(e)(2) to allow such a settlement therefore raises se-
rious questions about whether that court has ex-
ceeded its Article III authority.

The Ninth Circuit is not alone here. For example,
in a class action suit brought on behalf of purchasers
of various chemicals against a chemical company, the
District Court for the District of Columbia approved a
motion to distribute a cy pres award to the George
Washington University Law School. Diamond Chemi-
cal Co. v. Akzo Nobel Chemical. B.V., 517 F Supp.2d
212 (D.D.C 2007). Similarly, the “Illinois Institute of
Technology got $5 million from a settlement in a case
involving a diabetes drug in Illinois.” Liptak, Doling
Out Other People's Money, N.Y. TIMES at Al4, supra
n. 3. None of the entities that received the cy pres set-
tlements had any injury caused by the defendant that
would justify relief. None of them were parties in the
litigation, nor were their rights being adjudicated in
the litigation. They were awarded cy pres funds
merely because they had a loose connection with the
issues involved in the litigation, with the courts ap-
plying a nexus test developed in the entirely different
context of cy pres distribution of excess settlement

12

funds. Because the low threshold for that test falls
well beneath the legal requirements for standing, use
of it by those courts, as by the Ninth Circuit in this
case, to affirm settlement agreements under Rule
23(e)(2) raises serious enough Article III concerns as
to warrant this Court’s review.

In addition, as Judge Edith Jones has noted, be-
cause cy pres award distributions “likely violate Arti-
cle III’s standing requirements,” the courts “should be
troubled that cy pres distribution to an outsider unin-
volved in the original litigation may confer standing
to intervene in the subsequent proceedings should dis-
tribution somehow go awry.” Klier v. Elf Atochem
North America, Inc., 658 F.3d 468, 480 (5th Cir. 2011)
(Jones, J., concurring). In other words, these cy pres
award settlements violate the adversarial model of
adjudication and the requirements of Article III by
granting relief to nonparties who have suffered no in-
jury. As Northwestern University Law Professor Mar-
tin Redish has correctly observed, the distribution of
cy pres awards to nonparties transforms the “judicial
process from a bilateral private rights adjudicatory
model into a trilateral process.” Martin H. Redish, et
al., Cy Pres & the Pathologies of the Modern Class Ac-
tion: A Normative and Empirical Analysis, 62 Fla.
L.Rev., 617, 641 (2010).

This trend toward cy-pres-only awards, based on
the dubious authority of a federal rule of civil proce-
dure, thus raises serious questions about the federal
court’s constitutional authority to approve, much less
participate in, such settlements. The issue warrants
this Court’s attention now, before the trend gets even
further out of control.

13

CONCLUSION
The petition for writ of certiorari should be
granted, and the decision of the Ninth Circuit below
should be reversed.

February 2018 Respectfully submitted,

---

Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385016_0805%3A08. Public record. Not legal advice.
