Campbell Law’s Blanchard Community Law Clinic is recipient of cy pres award

RALEIGH - Campbell Law School's Blanchard Community Law Clinic (BCLC) will receive nearly a quarter of a million dollars as the result of a recent lawsuit settlement reached by the Maginnis Howard law firm, Dean J. Rich Leonard has announced.

"My law partner and I recently resolved a class action lawsuit and had the Blanchard Community Law Clinic designated as a cy pres recipient," explained Karl Gwaltney, an attorney at Maginnis Howard, a Raleigh-based law firm that specializes in civil consumer litigation, including unfair debt collection and credit reporting claims.

Cy pres is a doctrine that permits a court to award any unallocated, unclaimed or undeliverable funds from a settlement of judgement to a nonprofit organization that would advance the interests of the class and people similarly situated.

In this particular case, the class action lawsuit settlement involved a large medical processing company who was charging unlawful amounts to consumers who were requesting their medical records, Gwaltney explained. The settlement was reached while the Court's determination on class certification was under advisement. The settlement amounted to a full refund of all unlawful fees to each of the 6,858 class members, in addition to their receiving $205.89 in penalties for each violation of the North Carolina Debt Collection Act.

Gwaltney said the cy pres award is being given to the BCLC because of the work the Clinic does in providing free legal services and consumer-protection advocacy to low-income and underserved individuals.

The Clinic began its work with eviction prevention in May 2022 through a partnership with the City of Raleigh under the direction of the inaugural Clinic Director Ashley Campbell, who left the Clinic later that year to lead Legal Aid of North Carolina (LANC).

The Raleigh City Council unanimously agreed to spend $300,000 over three years to expand the Clinic's services and another $200,000 for tenant lawsuit settlement assistance in a partnership entitled, "City of Raleigh Housing Justice Project." To qualify for advice and legal representation, residents must live in Raleigh and be at or below 200% of the federal poverty level based on household size.

"The City of Raleigh is proud to partner with Campbell Law School to meet the needs of those facing eviction or housing insecurity," Mayor Pro Tem Nicole Stewart said in a news release. "This new resource will address a core need in our comprehensive approach to address housing affordability, supply and stability."

In 2022, an estimated 42% of Wake County renters were cost-burdened, or spending more than 30% of their household income on housing and utilities, according to the N.C. Housing Coalition. A family needed $48,000 in income in 2021 to afford the typical 2-bedroom apartment, according to an article in the News and Observer.

The Clinic, which was launched in September 2016, has had a tremendous impact on the Raleigh community serving more than 1,600clients since opening. Legal services are provided by Campbell Law students, under the supervision of current Clinic Director Rick Glazier.

The mission of the BCLC is to fuse the theoretical and practical to produce creative and compassionate lawyers and to present the practice of law as a means to make a difference by serving the underserved.

Law students handle cases with a high level of independence and conduct client interviews, prepare motions, oversee case management and make court appearances. Through this experience, students gain important practical legal skills and an appreciation for the challenges faced by citizens living in poverty. This program prepares students to be resourceful and practice-ready upon their entrance into the profession.

Most recently, students in the Clinic successfully intervened to prevent the eviction of a disabled woman after her landlord sought to remove her due to issues stemming from her disability - an action that would have jeopardized her Housing Choice Voucher (formerly "Section 8") and left her at risk of homelessness, this news article states.

"This cy pres award could not have come at a more meaningful and critical time," Glazier added. "It will allow the Clinic to expand our capacity to serve the citizens of Raleigh and surrounding communities in the coldest months of the year when homelessness prevention is crucial for survival, and during a period in which federal and state government cutbacks in resources have reduced the capacity of non-profits to meet the legal and holistic service needs of our most vulnerable citizens. It allows the law school to help make more gentle the flow of life for those in most serious need, often due to unforseen financial and health reasons. And, to that end, we are extraordinarily grateful to the Maginnis Howard law firm for their leadership in the consumer protection field and their exceptionally thoughtful designation of the Clinic as the recipient of these funds."

ABOUT CAMPBELL LAW SCHOOL

Since its founding in 1976, Campbell Law School has developed lawyers who possess moral conviction, social compassion, and professional competence, and who view the law as a calling to serve others. Among its accolades, the school has been recognized by the American Bar Association (ABA) as having the nation's top Professionalism Program and by the American Academy of Trial Lawyers for having the nation's best Trial Advocacy Program. Campbell Law boasts more than 5,000 alumni, who make their home in nearly all 50 states and beyond. In 2026, Campbell Law will celebrate 50 years of graduating legal leaders and 17 years of being located in a state-of-the-art facility in the heart of North Carolina's Capital. City.

ABOUT MAGINNIS HOWARD

Maginnis Howard has a dedicated team of experts ready to champion your case in the courtrooms of North Carolina and class actions across the country. We've recovered over $100 million for our clients and provide the thoughtful, strategic and personalized representation it takes to go up against insurance companies, corporations, creditors and anyone seeking to deprive you of your rights.

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