Revision: Jan. 29, 2025, 11:06 a.m.
HB 687-FN - AS INTRODUCED
2025 SESSION
25-0388
09/11
HOUSE BILL 687-FN
AN ACT relative to class action settlements and consent decrees.
SPONSORS: Rep. Corcoran, Hills. 28; Rep. Belcher, Carr. 4; Rep. Berry, Hills. 44; Rep. Granger, Straf. 2
COMMITTEE: Judiciary
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ANALYSIS
This bill provides that any money that can ultimately not be distributed to the class in a class action suit is escheated to the state general fund, and a court may not modify the judgment or apply the doctrine of cy pres to avoid that result. This bill also limits certain attorneys' fees to a certain rate unless a court determines otherwise.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
25-0388
09/11
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty Five
AN ACT relative to class action settlements and consent decrees.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Short Title. This bill may be known as and cited to as "The Class Action Settlement and Consent Decree Reform Act."
2 New Section; Judgments; Class Action Judgments. Amend RSA 524 by inserting after section 13 the following new section:
524:14 Class Action Judgments.
I. All money in a class action judgment which has not been distributed to members of the class, or where it has become impossible to distribute such funds under the judgment, shall be escheated to the state general fund. It is hereby prohibited to apply the doctrine of cy pres or to otherwise alter the judgment to prevent this escheat.
II. No portion of a class action settlement or judgment shall include payment to entities other than class members or to pay attorneys' fees.
3 New Paragraph; Attorneys' Fees for Services. Amend RSA 508:4-e by inserting after paragraph III the following new paragraph:
IV. Attorneys' fee awards in class action lawsuits and lawsuits to obtain consent decrees are limited to that as provided in the Laffey Matrix, unless the court determines otherwise.
4 Effective Date. This act shall take effect January 1, 2026.
25-0388
Revised 1/29/25
HB 687-FN- FISCAL NOTE
AS INTRODUCED
AN ACT relative to class action settlements and consent decrees.
FISCAL IMPACT:
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Estimated State Impact | ||||||
| FY 2025 | FY 2026 | FY 2027 | FY 2028 | ||
Revenue | $0 | Indeterminable Increase more than $10,000 to $100,000 or less per fiscal year | ||||
Revenue Fund(s) | General Fund | |||||
Expenditures* | $0 | Indeterminable Decrease more than $10,000 to $100,000 or less per fiscal year | ||||
Funding Source(s) | General Fund | |||||
Appropriations* | $0 | $0 | $0 | $0 | ||
Funding Source(s) | None | |||||
*Expenditure = Cost of bill *Appropriation = Authorized funding to cover cost of bill | ||||||
METHODOLOGY:
This bill mandates that any undistributed or undistributable funds from a class action judgment must escheat to the General Fund explicitly prohibiting the use of the cy pres doctrine or any other mechanism to redirect these funds elsewhere. Additionally, the bill prevents any portion of a class action settlement or judgment from being allocated to entities other than class members or used for attorneys' fees. This bill also limits certain attorneys' fees to a certain rate unless a court determines otherwise.
This bill may increase revenue to the General Fund, by an indeterminable amount, by redirecting unclaimed or undistributable class action settlement funds. However, it could also discourage class action litigation due to limitations on attorneys' fees, potentially reducing the frequency of such cases and their associated settlements.
The Department of Justice states that it is assumed the Department would not play a direct role in enforcing this bill. However, the bill could result in some additional revenue, though the exact amount cannot be estimated, as it is unknown how many class actions would meet the bill's requirements. Additionally, the bill would lead to reduced attorney fees in litigation involving the state, as fees would be limited to those provided in the Laffey Matrix, unless the court decides otherwise. This would decrease expenditures by approximately $10,000 to $100,000 or less. The increase in revenues is estimated to be in the range of $10,000 to $100,000 or less.
The Judicial Branch states it could see an increase in expenditures of no more than $10,000 a year due to an increase in litigation.
AGENCIES CONTACTED:
Department of Justice and Judicial Branch