Common use of Application of Track B Cap Clause in Contracts

Application of Track B Cap. Under the terms of the Settlement Agreement, successful Track B Class Members are entitled to an award equal to “the amount of [their] actual damages, up to $250,000.” However, Track B Awards, in the aggregate, are capped at $100 million. Thus, assuming the total funding appropriated by Congress for black farmer claims is $1.25 billion, the total of all Track B Awards would be capped at $100 million. The following chart illustrates the application of the Track B Cap, as prescribed by Section I.A.1 of Appendix 1. For illustrative purposes, we assume a $100 million Track B Cap applies, and that only two uniform groups of successful Track B Claimants are entitled to awards – (1) Group B1, each member of which is eligible for a $250,000 Track B Award (based on proof of actual damages of $250,000 or more); and (2) Group B2, each member of which is eligible for a $100,000 Track B Award (based on proof of actual damages of $100,000). Number of Successful Track B Claimants Total Amount of Proven Claims Percent of Track B Award Provided After Application of Track B Cap Adjusted Track B Award after Application of the Track B Cap Group B1 – 100 Claimants ($250,000 per claim) Group B2 – 500 Claimants ($100,000 per claim) $75 million 100% Group B1 – $250,000 per claim Group B2 – $100,000 per claim Group B1 – 500 Claimants ($250,000 per claim) Group B2 – 750 Claimants ($100,000 per claim) $200 million 50% Group B1 – $125,000 per claim Group B2 – $50,000 per claim Group B1 – 1,000 Claimants ($250,000 per claim) Group B2 – 1,500 Claimants ($100,000 per claim) $400 million 25% Group B1 – $62,500 per claim Group B2 – $25,000 per claim