A court-appointed special master or neutral allocates settlement proceeds among claimants by applying the settlement's criteria, resolving disputes, and determining individual awards. Appointment may be by agreement or court order.
The master's determinations are typically subject to limited review.
Alternative Names:
Allocation Special Master, Settlement Allocation
Why it Matters?
Neutral allocation addresses the conflict inherent in aggregate settlement, since plaintiff counsel representing many claimants in a single fund cannot allocate among them without a conflict. The aggregate settlement rule requires informed consent from each client to the allocation, which a neutral determination facilitates. For defendants the allocation is largely indifferent, but the process affects how quickly claimants accept and the program reaches its participation threshold.
Frequently Confused with
Related terms
Frequently asked questions
Why is neutral allocation used?
Are allocations reviewable?
