The “benefit of the bargain”

April 12, 2012

  • 51 Bankruptcy
  • 51IX Administration
  • 51IX(A) In General
  • 51k3032 Compromises
  • 51k3033 k. Judicial Authority or Approval.

51 Bankruptcy“Automatic special sweepstakes” component of proposed settlement of class action lawsuit against Chapter 11 debtor-sweepstakes companies, under which ten class members selected at random would each receive cash prizes of $100,000, was appropriate; many members had stated on their claim forms that they ordered magazines and/or merchandise from debtors in the mistaken belief that such purchases were either necessary to win or enhanced their chances of winning a sweepstakes prize, and the purpose of the special sweepstakes was to give such persons the “benefit of the bargain” they thought they had made.
In re Am. Family Enterprises, 256 B.R. 377 (D.N.J. 2000)
Suggested by Brian Rothschild, Attorney; Akin Gump Strauss Hauer & Feld LLP; Los Angeles, CA