Business NewsLegal Notices
Cleveland Law Firm Dworken & Bernstein to Disburse $14 Million to Charities; Millions Leftover After Class Action Settlement Money Goes Unclaimed
2008-07-16 11:16:00
Dworken & Bernstein Makes U.S. History With Largest Ever 'Cy Pres' Donation
and Kicks off National Campaign to Raise Awareness of 'Cy Pres' Awards
Akron, Cincinnati, Cleveland, Columbus, Toledo, Youngstown Charities to
Share in Pool of Money
CLEVELAND, July 16 /EMWNews/ -- The Northeast Ohio law firm of
Dworken & Bernstein will give away $14 million on July 18, 2008 to 34 Ohio
charities at a historic luncheon, thanks to an obscure legal doctrine known
as cy pres. (pronounced sigh-PRAY)
Cy pres awards are funds leftover from class action lawsuit
settlements. For a number of reasons, not all class members can be located
to receive settlement monies. Instead of that money reverting back to the
defendant, cy pres allows the funds are directed to charitable
organizations.
"The cy pres doctrine accomplishes enormous benefit," said Patrick
Perotti, Dworken & Bernstein partner who learned about cy pres in law
school. He is spearheading a national campaign to raise awareness of cy
pres awards so they will become a standard component of all class action
settlements.
"There is very little awareness or use of cy pres," said Perotti. "We
are among only a handful of firms in the country employing this legal
doctrine."
In the last year, Dworken & Bernstein has directed over $1 million of
cy pres monies to charities addressing hunger, homelessness, disease
prevention, education, drug and alcohol treatment, and a host of other
programs.
"The $14 million cy pres award is significant because it is the largest
cy pres of its kind in United States history," said Perotti. "This is just
from one case and one law firm. Imagine if all plaintiff lawyers used cy
pres. It would mean hundreds of millions of dollars for charities."
According to Stephanie Ortbals-Tibbs, a spokeswoman for the American
Bar Association, there has not been a larger donation of this kind. "I am
not aware of cy pres donation that exceeded $14 million."
The multi-million dollar award is the money left over from a class
action suit against Grange Mutual Insurance, a Columbus, Ohio insurance
company. The suit: policyholders in Ohio were billed extra premiums for
under- and uninsured motorist coverage. During the course of the 2007
trial, Grange agreed to settle. $30 million was awarded to the class
members, but only $16 million was paid-out. Because of the historic
settlement, the remainder will all go to charities.
Perotti stressed his admiration for defendant Grange in agreeing to the
cy pres provision. "We applaud Grange for its role in making this money
available to these charities."
Dworken & Bernstein will present the award checks to charities during a
luncheon on July 18 at the Cleveland Renaissance Hotel in downtown
Cleveland. More than 350 guests including state and federal judges, charity
representatives, lawyers, politicians, and business, religious and civic
leaders will witness this historic event.
"This is going to be an extremely exciting and emotional event," said
Perotti. "These charities have no idea just how much money they are
getting."
The slow economy and a decrease in donations have forced many charities
to suspend programs or make significant cuts, often affecting the most
vulnerable in our community.
"Like many other organizations, we've been hit pretty hard by the way
the economy has been going," said Frank Canning, Interim Executive Director
of The Leukemia & Lymphoma Society. "A lot of our programs have not hit
their budget, so we do have a shortfall, and monies that we receive will go
directly to our programs for children and families affected by leukemia."
"We are thrilled that this cy pres will have an immediate and
life-changing impact on these charities and the people they serve," said
Perotti.
To learn more about cy pres awards, go to http://www.ohiolawyersgiveback.org
Dworken & Bernstein will officially launch Ohio Lawyers Give Back.org
on July 18. The launch of the site coincides with the kick-off the national
campaign to raise awareness of cy pres awards. Visitors to the site will
learn about each charity, the amount of funds it received, and how the
money will impact the nonprofit.
According to Perotti, the site was developed to educate lawyers, judges
and the public about cy pres, to inform them of the positive impact the
awards will have on charities and the communities they serve, and to
encourage the use of cy pres in every class action where there is likely to
be a substantial amount of unclaimed settlement funds.
About Dworken & Bernstein
Dworken & Bernstein, L.P.A., with twenty-one experienced attorneys, and
offices in Cleveland and Painesville, is the largest law firm in the Lake,
Geauga and Ashtabula County area, offering a full range of professional
legal services. With its main office in Painesville and another office in
Cleveland, the firm represents businesses, individuals and families in all
areas of law.
Contact:
Carolyn Grossi
216.687.8000
216.407.5301 Mobile
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