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WVU Law receives $8 million from unclaimed settlement
5/8/2008 8:30 AM By Lawrence Smith -Kanawha Bureau
 | | Kanawha Circuit Judge Louis H. "Duke" Bloom (far left) presents a check for $8 million to John Fisher (second from left), dean of WVU's College of Law. The gift, the largest in the College's history, came from unclaimed money from a class-action settlement against H & R Block's Refund Anticipation Loan program. Joining Bloom in presenting the gift are Charleston attorneys Tom Goodwin, Nick Casey, Trig Salsbury and Charles Bailey. (Photo by Lawrence J. Smith) |
CHARLESTON - Citizens won't be only ones receiving an economic stimulus check.
West Virginia University's College of Law recently received an six-figure boost to its budget compliments of those who failed to claim their portion of a settlement reached in a class-action lawsuit against one of the nation's largest tax preparers.
On May 2, Kanawha Circuit Judge Louis H. "Duke" Bloom presented a check for $8 million to John Fisher, dean of the law school. The gift - the largest in the College's history - came from unclaimed proceeds in a class-action settlement against H & R Block's Refund Anticipation Loan program.
Accompanying Bloom in presenting the check was Charles R. Bailey, with the Charleston law firm of Bailey and Wyant, who served as Block's local counsel. Since exhaustive efforts were made to pay all potential claimants in the case, Bailey said his client is in full support of using the money cy pres, which is Latin for "next closest thing."
"H & R Block is very supportive of taking this cy pres money and giving it to the WVU College of Law," Bailey said.
Also accompanying Bloom in presenting the check was Trig Salsbery, with the Charleston law firm of Bailey and Glasser. Salsbery's firm, which is not related to Bailey and Wyant, served as plaintiff's counsel.
According to Salsbury, the suit, which was brought four, and settled two years ago, resulted in a settlement of nearly $60 million.
Given how large a company Block is, and the number of people who applied for a RAL, Salsbury said he's amazed that so much went unclaimed.
"It's odd that there would be so many people who did not collect their checks," Salsbury said.
Regardless, like Charles Bailey, Salsbury said given the exhaustive efforts that were made to pay all potential claimants, including Bloom extending the deadline to file, and placing advertisements in national publications, he's pleased with giving the leftover portion to the College.
In receiving the check, Fisher said it allows the College to have a "constant, dependable source of income." The money will be used mostly to fund merit based scholarships, and chair endowments for faculty.
"This is a transformative gift in allowing us what we want to do," Fisher said.
Prior to presenting the check, Bloom said the money will actually go to the Greater Kanawha Valley Foundation, which will handle investment of the money, and other administrative duties. The gift, which increases the College's endowment by 30 percent, is likely to exceed $400,000 annually in earnings.
Along with himself, Bailey and Salsbury, a committee of attorneys will administer the gift, which includes Tom Goodwin and Nicholas Casey, with the Charleston law firms of Goodwin and Goodwin and Lewis, Glasser, Casey and Rollins, respectively. Both Goodwin and Casey served as guardians in the settlement.
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