§ 25-319.01.Class action litigation; unpaid residue; payment by defendant.
Article 3: Parties · Last amended 2014 · Last verified July 22, 2026
Full Text of § 25-319.01
Source
Laws 2014, LB1089, § 1.
Plain-English Summary
Class-action judgments and settlements do not always get fully claimed. Some class members move, miss a deadline, or never see the notice, leaving money set aside for them unpaid. Section 25-319.01 tells Nebraska courts what to do with that leftover money in class actions brought under section 25-319. The Legislature states its intent up front: unpaid residuals should be distributed, where possible, in a way that promotes justice for Nebraska citizens generally, and it treats using those funds for that purpose as a proper and constitutional use of court-collected money.
The mechanics follow that stated purpose. Before entering judgment or approving a settlement in a section 25-319 class action, the court must determine the total amount that would be payable to all class members if everyone entitled to a share collected it in full. The court also sets a date by which the parties must report back on what class members received in the end. Once that report comes in, the court directs the defendant to pay the unpaid residue — the gap between what was owed and what got collected in the end — to the Legal Aid and Services Fund, unless the court orders a different disposition to serve the purposes of the underlying case.
In practice, this section turns unclaimed class-action money into a resource for legal aid rather than letting it revert to the defendant by default or go untracked. It also builds accountability into the settlement process, since the court cannot sign off on a judgment or settlement without first knowing what the class is owed in total, and later confirms what was paid in the end.
Frequently Asked Questions
What is “unpaid residue” in a Nebraska class action?
It is the gap between the total amount a court determines would be payable if every class member collected in full and the amount class members received in the end, as reported to the court after judgment or settlement.
Where does unpaid residue from a Nebraska class action go?
Generally to the Legal Aid and Services Fund, unless the court orders a different disposition to further the purposes of the underlying case.
What must a court do before approving a class-action settlement under section 25-319.01?
It must determine the total amount that would be payable to all class members if everyone entitled to a share received it in full, and set a date for the parties to report the amount paid in the end.
Can a court direct the unpaid residue somewhere other than the Legal Aid and Services Fund?
Yes. The court may order otherwise if doing so would further the purposes of the underlying cause of action.
Why did the Legislature enact this residue-distribution requirement?
It states an intent to see unpaid residuals in class-action litigation distributed, where possible, in a way that promotes justice for Nebraska citizens, and treats that use of court-collected funds as serving a proper public and governmental purpose.
Does this section apply to every civil settlement or only to class actions under section 25-319?
It applies specifically to class actions described in section 25-319, not to civil settlements generally.