Estimated reading time: 9 minutes.
Key facts
- What happened: On October 26, 2026, plaintiffs asked a federal judge to preliminarily approve a class action settlement with Tyler Technologies over alleged errors in North Carolina's eCourts software that, they say, led to wrongful arrests and people being held in jail after they should have been released.
- The case: Chaplin et al. v. McFadden et al., No. 1:23-cv-00423, in the U.S. District Court for the Middle District of North Carolina. The suit was filed on May 23, 2023.
- The proposed payments: $2,800 for each wrongful arrest, and $500 or more for qualifying overdetention of more than six hours, with no person receiving more than $5,000.
- The cap: Payments to all claimants together cannot exceed $1.5 million. Tyler would pay notice and administration costs, attorneys' fees of up to $503,500 and service awards separately.
- Who is left out: The settlement resolves claims only against Tyler. Claims against Mecklenburg County Sheriff Garry L. McFadden continue.
- Status: The court has not approved the deal. There is no claim form or settlement website yet.
In this article
- What the settlement would do
- The two settlement classes
- How much each person could receive
- How claims would work
- What Tyler says
- Timeline
- Who may be affected and what you can do now
- What remains unresolved
- What happens next
- Frequently asked questions
What the settlement would do
North Carolina's court system began moving to a statewide electronic platform, known as eCourts, in 2023. Tyler Technologies, a Texas-based software company, developed and licensed the main pieces under a contract with the North Carolina Administrative Office of the Courts. According to the settlement agreement, those include Enterprise Justice, the case management system formerly called Odyssey, and eWarrants, the application courts and law enforcement use to manage warrants and other criminal process.
The plaintiffs allege that errors in that software harmed people in two ways. Some were arrested on warrants that were no longer valid. Others stayed in jail for hours or days after they had met every condition for release, such as posting bond.
The motion filed on October 26, 2026, asks Judge William L. Osteen Jr. to grant preliminary approval, certify two settlement classes, approve the notice plan and set a final approval hearing. It was filed by Tin Fulton Walker & Owen of Durham and Los Angeles attorney Akeeb Dami Animashaun, and Tyler does not oppose it.
Preliminary approval is a first step Preliminary approval means the judge finds the deal good enough to send notice to class members. Final approval comes later, after people have a chance to object or opt out. Until then, no payments are made.
The two settlement classes
The agreement creates two groups, each with its own definition and exclusions.
Overdetention class. This covers people held in pretrial detention in a North Carolina criminal detention facility who, on or after February 13, 2023, stayed in custody more than six hours after meeting all conditions of release. The release must have come through a secured bond, unsecured bond, written promise to appear, or dismissal of all charges. The class excludes, among others, people held on federal charges, people held after a judgment in their case, people with other outstanding warrants or unmet release conditions, people released before Enterprise Justice went live in their county, and people charged as juveniles.
Wrongful arrest class. This covers people arrested in North Carolina on or after July 22, 2022, on a state, county, municipal or local warrant or order for arrest, who were booked or processed into a jail or detention facility, and whose arrest or detention resulted from an error in Tyler software. It excludes arrests made without a warrant, federal arrests, arrests that happened before eWarrants went live in the relevant county, and people charged as juveniles. Claimants must have a good-faith basis to believe a Tyler software error caused the arrest.
How much each person could receive
For the wrongful arrest class, a valid claim pays $2,800 for each distinct wrongful arrest.
For the overdetention class, payment depends on how long the person was held after meeting release conditions and how they were released:
- Released on bond or a written promise to appear: $500 for a delay of more than 6 and up to 13 hours. For longer delays, $500 plus $350 for each additional hour beyond 13 hours.
- Released because all charges were dismissed: $500 for a delay of more than 6 and up to 20 hours. For longer delays, $500 plus $350 for each additional hour beyond 20 hours.
Hourly payments are rounded down to the nearest half hour. Several early news reports described the hourly payment as starting after six hours; the agreement filed with the court sets the 13-hour and 20-hour thresholds above.
No one can receive more than $5,000 in total, even if they belong to both classes. If valid claims add up to more than $1.5 million, every payment is reduced proportionally. If they add up to less, the unused money goes back to Tyler. Lawyers call this a claims-made settlement.
Records matter for overdetention claims The agreement measures the delay using court system data and the documents a claimant provides, such as bond and release records. If you think you were held too long, keep any paperwork showing when your bond was posted and when you were released.
How claims would work
If the judge grants preliminary approval, notice would begin within 14 days. Kroll Settlement Administration would run a settlement website with online claim forms and a toll-free number. Notice would be published in seven North Carolina newspapers, including the Charlotte Observer and the Raleigh News and Observer, and through online ads and a press release.
Claims would be due 120 days after notice begins. Requests to opt out and objections would be due 60 days after notice begins. Claim forms are signed under penalty of perjury. Claimants could choose payment by ACH, prepaid card, Venmo, PayPal, Zelle or check.
Tyler may cancel the deal if opt-outs exceed a confidential threshold.
What Tyler says
In the agreement, Tyler denies all claims and any wrongdoing or liability. It says it settled to avoid the expense and uncertainty of further litigation. The plaintiffs say they believe their claims have merit but accepted the settlement because of the risks of continued litigation through discovery, trial and appeals.
The agreement lets class counsel request up to $503,500 in attorneys' fees and expenses, and up to $5,000 each for the nine class representatives, for a maximum of $45,000. Tyler would pay those amounts on top of payments to class members, subject to court approval. The parties say they did not discuss fees until after they agreed on relief for the class.
Timeline
| Date | Event |
|---|---|
| July 22, 2022 | Start of the wrongful arrest class period |
| February 13, 2023 | Start of the overdetention class period |
| May 23, 2023 | Lawsuit filed in the Middle District of North Carolina |
| October 26, 2026 | Unopposed motion for preliminary approval filed |
| Not yet set | Preliminary approval ruling, notice, and final approval hearing |
Who may be affected and what you can do now
You may be a class member if you were arrested in North Carolina on a warrant that was invalid because of a software error, or if you were held in a North Carolina jail more than six hours after meeting the conditions of your pretrial release, within the class periods above.
There is nothing to file yet. Do not pay anyone who offers to file a claim for you. Watch for the official settlement website once the court acts.
Where official notice would appear If the judge grants preliminary approval, notice would run in seven North Carolina newspapers, in online ads and on a settlement website run by Kroll Settlement Administration.
For other cases that are open now, see our list of class action cases you can join.
What remains unresolved
- Court approval. Judge Osteen has not ruled on preliminary approval.
- The claim deadline. Deadlines depend on when the court grants approval.
- Claims against the sheriff. Claims against Mecklenburg County Sheriff Garry McFadden are not part of this deal and continue.
- How many people qualify. The filing does not give a class size, so it is unclear whether claims will exceed the $1.5 million cap.
This article is for information only and is not legal advice. The plaintiffs' allegations have not been proven, and Tyler denies them.
What happens next
The court will decide whether to grant preliminary approval. If it does, notice and the claims period begin, followed by a final approval hearing. We will update this story when the judge rules.
Frequently asked questions
What is the NC eCourts settlement?
It is a proposed $1.5 million claims settlement with Tyler Technologies, which built North Carolina's eCourts software, over alleged wrongful arrests and overdetention. It still needs court approval.
How much is the wrongful arrest payment?
$2,800 for each distinct wrongful arrest caused by a Tyler software error, subject to the $5,000 individual cap and the $1.5 million overall cap.
How is the overdetention payment calculated?
The base payment is $500 for a delay of more than six hours. Extra pay of $350 an hour starts after 13 hours for bond releases or after 20 hours for releases based on dismissed charges.
How do I file a claim?
You cannot file yet. If the court grants preliminary approval, Kroll Settlement Administration will open a settlement website with claim forms.
Does the settlement cover the Mecklenburg County Sheriff?
No. It resolves only claims against Tyler. Claims against Sheriff Garry McFadden continue.
Does Tyler admit wrongdoing?
No. Tyler denies the claims and any liability.
