Cundiff

Class action plaintiffs filed a consumer protection action against GTE California Inc., now known as Verizon California, Inc. (Verizon), in October of 2000, alleging Verizon engaged in unfair business practices by improperly billing residential customers for rented telephone equipment. In August of 2004, the parties entered into a settlement agreement pursuant to which Verizon agreed to make cash payments to Verizon customers who filed claims in which they averred, under penalty of perjury, they had been unaware of the rental charges. After entry of final judgment, the claims of the eligible Verizon customers were administered and settlement checks were mailed to the claimants. The present dispute involves $414,593.81 in settlement checks that either were not cashed or were returned by the post office as undeliverable.

Over two years after judgment was entered, plaintiffs sought to amend the judgment to distribute these funds pursuant to Code of Civil Procedure section 384, which requires “unpaid residuals in class action litigation” be paid to “nonprofit organizations or foundations to support projects that will benefit the class or similarly situated persons . . . .”…