When Consumer Class Actions Created Lasting Public Benefit
When Consumer Class Actions Created Lasting Public Benefit
In 1986, the California Supreme Court adopted CLIPI's position in a consumer class action with large numbers of injured victims but relatively small amounts of individual damages.
The question before the Court was whether a consumer trust fund could be established to better distribute damages on behalf of injured consumers. The solution approved by the Court in the Levi Strauss litigation would now be available to replace prior inefficient distribution techniques that often allowed the costs of distribution to consume much of the overall damages award.
Subsequent to the Court’s decision, the Levi Strauss settlement established the California Consumer Protection Foundation to distribute millions of the still-remaining damages to nonprofit consumer protection advocacy and education groups.
One such grant to the Consumers Union funded its efforts to successfully oppose an inadequate settlement in payments made to establish the California Endowment Foundation when Blue Cross went private—the ultimate total charitable endowment amount went from a few hundred million to more than $3 billion.
This case demonstrated that consumer protection litigation could create ongoing institutional support for advocacy, not just tiny one-time payments to individual plaintiffs.
In 1986, the California Supreme Court adopted CLIPI's position in a consumer class action with large numbers of injured victims but relatively small amounts of individual damages.
The question before the Court was whether a consumer trust fund could be established to better distribute damages on behalf of injured consumers. The solution approved by the Court in the Levi Strauss litigation would now be available to replace prior inefficient distribution techniques that often allowed the costs of distribution to consume much of the overall damages award.
Subsequent to the Court’s decision, the Levi Strauss settlement established the California Consumer Protection Foundation to distribute millions of the still-remaining damages to nonprofit consumer protection advocacy and education groups.
One such grant to the Consumers Union funded its efforts to successfully oppose an inadequate settlement in payments made to establish the California Endowment Foundation when Blue Cross went private—the ultimate total charitable endowment amount went from a few hundred million to more than $3 billion.
This case demonstrated that consumer protection litigation could create ongoing institutional support for advocacy, not just tiny one-time payments to individual plaintiffs.
Category
News
Written by
Carlyle W. Hall Jr.
Co-Founder, CLIPI
Published
Category
News
Written by
Carlyle W. Hall Jr.
Co-Founder, CLIPI
Published
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