McClellan: Divvying Up $2.7 Million in Leftovers

Bill Mclellan describes Ted Frank's arguments in the Oetting v. Green Jacobson PC case.

The big question was this: Why should money belonging to the class members be given to a charity — no matter how much the judge and the class-action lawyers like the charity? The judge in this instance is U.S. District Judge Carol Jackson. The lawyers are from the firm of Green Jacobson.

Appearing on behalf of Oetting was Ted Frank, a conservative activist who runs a nonprofit law firm that specializes in objecting to class-action settlements. Appearing on behalf of the settlement was Joe Jacobson of Green Jacobson.

Frank did not argue that Legal Services is not a great organization. He argued that if the judge and the lawyers want to give it money, they should give it their own. And if they insist on giving other people’s money away, it ought to be something more“cy pres.” He suggested the Securities and Exchange Commission’s “Fair Funds for Investors,” which helps investors who have been bilked.