Thank you for sharing!

Your article was successfully shared with the contacts you provided.
Thomas A. Dickerson

Although subject to criticism, there are occasions when a non-cash settlement of coupons, in whole or in part, for the purchase of good and services from the defendant may be appropriate. See Thomas A. Dickerson, “Class Actions: The Law of 50 States,” Law Journal Press, Ch. 9 (Non-Cash Settlements) (2017); see also Williamson v. McAfee, 2017 U.S. Dist. LEXIS 15838 (N.D. Cal. 2017) ($11.50 “value certificate”; class could receive $11.50 in cash if completed form); Chambers v. Whirlpool, 2016 U.S. Dist. LEXIS 140839 (C.D. Cal. 2016) (“a full recovery of costs spent on repairs; $200 to $300 in cash for class members who replaced their dishwashers; $100 or a 30 percent rebate on the purchase of a new dishwasher; for class members who experienced an overheating event in the future; a rebate of 10 to 15 percent on the purchase of a new dishwasher to all class members); Redman v. Radioshack, 768 F.3d 622 (7th Cir. 20154) ($10.00 coupon; if purchase item costing less than $10.00 no change; transferable and cash convertible).

The reasons for allowing coupon settlements include: (1) recovery of de minimus damages (which makes the cost of distribution of each individual’s cash award higher than that individual’s claim); (2) the inability to identify class members; (3) the defendant’s inability to pay cash to the class; or (4) it makes good business sense from the standpoint of both the consumer and defendant. Since coupon settlements are generally worth less to consumer than cash, they must be carefully examined for adequacy. Yet coupon settlements are justified because they solve manageability problems, may reflect the defendant’s financial instability and require a defendant to disgorge improperly obtained monies. The courts must be particularly careful and make certain that a proposed coupon settlement is nearly as good as a cash settlement as possible.

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Advance® Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]

Dig Deeper

Reprints & Licensing
Mentioned in a Law.com story?

License our industry-leading legal content to extend your thought leadership and build your brand.


ALM Legal Publication Newsletters

Sign Up Today and Never Miss Another Story.

As part of your digital membership, you can sign up for an unlimited number of a wide range of complimentary newsletters. Visit your My Account page to make your selections. Get the timely legal news and critical analysis you cannot afford to miss. Tailored just for you. In your inbox. Every day.

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.