Tyler Technologies $1.5 Million NC eCourts Settlement, Who Can Claim Compensation for Wrongful Arrests and Jail Overdetention?

People in North Carolina who say they were arrested because of errors in the state’s eCourts software, or held in jail more than six hours after meeting their release conditions, could qualify for payments under a proposed $1,500,000 settlement with Tyler Technologies, Inc. The proposal offers $2,800 per qualifying wrongful arrest and $500 or more for qualifying overdetention, with a $5,000 cap per person.

The settlement is proposed, not approved, and no claim form or official settlement website is open yet. Plaintiffs filed an unopposed motion for preliminary approval on October 26, 2026 in the U.S. District Court for the Middle District of North Carolina. The court must act before notice goes out and the claims process begins. Under the agreement, the claim deadline would be 120 days after a “Notice Date” that depends on when the court enters a preliminary-approval order.

The case is Chaplin et al. v. McFadden et al., No. 1:23-cv-00423-WO-JGM, a putative class action. The proposed settlement resolves claims against Tyler only. Claims against Mecklenburg County Sheriff Garry L. McFadden are not part of the agreement. Tyler denies wrongdoing and liability.

Quick Facts: Tyler Technologies NC eCourts Settlement

Detail	Information
Proposed settlement amount	Up to $1,500,000 for valid claims against Tyler (claims-made)
Defendant settling	Tyler Technologies, Inc.
Court	U.S. District Court for the Middle District of North Carolina
Case name	Chaplin et al. v. McFadden et al.
Case number	1:23-cv-00423-WO-JGM
Settlement agreement filed	October 26, 2026 (ECF No. 159-1)
Motion for preliminary approval	Filed October 26, 2026 (ECF No. 160); court ruling not confirmed
Wrongful-arrest payment	$2,800 per distinct qualifying arrest
Overdetention payment	$500, plus $350 per additional qualifying hour after set thresholds
Maximum per person	$5,000
Claims administrator named in agreement	Kroll Settlement Administration LLC
Official settlement website	Not yet launched; the agreement provides for the administrator to set one up after preliminary approval
Claim form	Required; separate forms for wrongful-arrest and overdetention claims
Claim deadline	Not set; proposed as 120 days after the Notice Date
Claims against Sheriff McFadden	Not resolved by this agreement

Who Qualifies for the Tyler Technologies NC eCourts Settlement?

The proposal creates two groups. Being arrested in North Carolina or spending time in jail is not enough. Your situation must meet the settlement’s definitions for dates, type of arrest or release, and connection to the software.

North Carolina residents allegedly wrongfully arrested because of Tyler software errors

You may qualify for the wrongful-arrest group if:

• you were arrested in North Carolina on or after July 22, 2022;
• the arrest involved a warrant or order for arrest issued by North Carolina, a North Carolina county, a municipality or a local law-enforcement agency;
• you were detained and booked or processed at a jail or similar facility before release;
• the arrest or detention resulted from an error in software licensed by Tyler; and
• you meet the other requirements and no exclusion applies.

A valid claim must include a good-faith basis for believing a software error caused the arrest, and the administrator will review it. Exclusions include arrests involving federal charges or federal facilities, arrests without a warrant or order for arrest, incidents before the eWarrants system went live in the relevant county, and juvenile cases.

North Carolina residents held in jail too long after meeting release conditions

The overdetention group covers people held in a North Carolina criminal detention facility on or after February 13, 2023 for more than six hours after satisfying all conditions for pretrial release. Those conditions generally involve a secured bond, an unsecured bond, a written promise to appear, or dismissal of all charges. The delay is measured from when the release conditions were met, not from arrest or booking.

For example, someone who posted bond at 10 a.m. but was held until 9 p.m. might have a potentially qualifying delay, if no other lawful hold applied. That is only an illustration, and the administrator would verify the actual timing.

Exclusions include federal detention, delays after judgment in a criminal case, people subject to other warrants or charges, juvenile cases, and releases before Enterprise Justice (formerly Odyssey) went live in the relevant county.

Can someone qualify for both groups?

Potentially, but total benefits are capped at $5,000 per person across all claims.

How Much Could North Carolina Residents Receive From the Tyler Technologies Settlement?

Type of claim	Proposed payment
Each distinct qualifying wrongful arrest	$2,800
Overdetention of 6 to 13 hours after bond or written-promise release conditions	$500
Overdetention beyond 13 hours after bond or written-promise release conditions	$500 plus $350 per additional qualifying hour
Overdetention of 6 to 20 hours after dismissal of all charges	$500
Overdetention beyond 20 hours after dismissal of all charges	$500 plus $350 per additional qualifying hour
Maximum per person	$5,000
Maximum for all valid claimants	$1,500,000

The agreement counts additional overdetention time in full or half-hour increments, rounding down.

Is the $1.5 million guaranteed to be paid out?

No. It is a cap. If valid claims exceed $1.5 million, payments are reduced proportionally. If they total less, unused funds go back to Tyler. Tyler would pay court-approved attorneys’ fees and expenses, service awards, and notice and administration costs separately, so they do not reduce the $1.5 million.

Plaintiffs’ counsel may seek up to $503,500 in fees and expenses and service awards of up to $5,000 for each of nine class representatives (up to $45,000), all subject to court approval.

How to File a Tyler Technologies NC eCourts Settlement Claim

Claims are not open yet. If the court grants preliminary approval, Kroll Settlement Administration LLC is to run the claims process and set up the settlement website, whose address has not been confirmed. Do not submit records or payment details to any site claiming to take claims for this settlement before the court-approved notice appears.

1. Work out which group may fit. Consider the incident date and whether your arrest or detention can be tied to a Tyler software error in your county.
2. Gather records. Useful items include the warrant or order for arrest, booking and release records, bond receipts, release orders, case summaries and dismissal records, documents showing when release conditions were met, and identification. The agreement lets the administrator obtain certain Enterprise Justice records and request expunged records when needed, so do not assume a missing paper copy rules you out.
3. Wait for preliminary approval and notice. The proposed notice plan includes publication in seven North Carolina newspapers, digital advertising, a press release and an online settlement website.
4. Submit the right claim form on time. Forms can be filed online or on paper on request. The Notice Date is 14 days after the court enters the preliminary-approval order, and claims are due 120 days after that. A calendar date cannot be calculated until the order is entered.
5. Keep proof. Save your form, documents and confirmation. The administrator may ask you to fix deficiencies, and an uncorrected claim can be deemed invalid.
6. Choose a payment method if approved. Options listed include ACH transfer, prepaid card, Venmo, PayPal, Zelle or paper check. The administrator is to pay within 30 days after receiving the funds from Tyler.

What Laws Apply to the Tyler Technologies NC eCourts Lawsuit?

North Carolina negligence law and Tyler Technologies

The core claim against Tyler is negligence: that defects in its court software foreseeably caused wrongful arrests and delayed releases. A negligence plaintiff generally must show a duty of care, breach, causation and harm. On March 31, 2025, U.S. District Judge William L. Osteen Jr. denied Tyler’s motion to dismiss the negligence claim, finding a duty of care plausibly alleged at that stage. That ruling let the claim proceed. It did not find that Tyler was negligent.

North Carolina General Statutes § 99B-5: failure to warn

Plaintiffs also advanced a failure-to-warn theory under N.C. Gen. Stat. § 99B-5, which addresses inadequate warnings or instructions in product-liability actions. The settlement does not establish that the software was legally defective or that Tyler breached a warning duty.

42 U.S.C. § 1983: claims against government officials

Section 1983 lets people seek relief for violations of federal rights by officials acting under color of state law. The wider eCourts lawsuit includes claims against Sheriff McFadden, which are different from the negligence claim against Tyler. The proposed agreement excludes McFadden and government actors from its release.

Federal Rule of Civil Procedure 23: why court approval is required

Rule 23 requires judicial approval of a class settlement. The parties have asked the court to preliminarily approve the settlement and certify the proposed settlement classes for settlement purposes. Until the court acts, this remains a putative class action with a proposed settlement.

If you want to read about other claims over wrongful arrests and detention, see AllAboutLawyer’s coverage of the Angela Lipps Wrongful Arrest Lawsuit: What The AI Case Means and the City of Fairfield Civil Rights $1.2M Class Action Settlement, File By March 13, 2026 For Unlawful Jail Detention. Those cases involve different defendants and facts.

Why Does the Tyler Technologies Settlement Not End the Whole eCourts Lawsuit?

The agreement resolves defined claims against Tyler and the entities covered by its release. It does not release Sheriff McFadden or government actors and entities. The allegations involve both the software and the officials responsible for warrants, detention and release decisions, so a settlement with the vendor does not resolve every dispute. Tyler denies wrongdoing, and the parties say the settlement avoids the cost and uncertainty of discovery, trial and appeals.

Key Dates in the Tyler Technologies NC eCourts Lawsuit

Date	Event
July 22, 2022	Start of the proposed wrongful-arrest class period
February 13, 2023	Start of the proposed overdetention class period
May 23, 2023	Original federal lawsuit filed
March 31, 2025	Court denies Tyler’s motion to dismiss the negligence claim
September 16, 2026	Docket reporting indicates a settlement was reached as to Tyler
October 26, 2026	Settlement agreement (ECF No. 159-1) and unopposed motion for preliminary approval (ECF No. 160) filed
Pending	Preliminary-approval ruling
14 days after preliminary approval	Notice Date (proposed)
120 days after the Notice Date	Claim deadline (proposed)
60 days after the Notice Date	Opt-out and objection deadline (proposed)
Not confirmed	Final approval hearing

Can North Carolina Residents Opt Out of or Object to the Tyler Technologies Settlement?

Opting out. A person who wants out must submit an individually signed, timely written request to the address the administrator designates, postmarked no later than 60 days after the Notice Date. People who validly opt out receive no benefits and are not bound by the release, but opting out does not guarantee a successful individual lawsuit.

Objecting. A class member can file a written objection with the court with the required information and explanation, also due 60 days after the Notice Date.

Doing nothing. If the court approves the settlement, class members who do not validly opt out may be bound by the release even if they never file a claim, and they would generally receive no payment without a valid claim. Follow the court-approved notice instead of calculating deadlines from unconfirmed dates.

If your concern is arrests by federal immigration authorities, which this settlement does not cover, see AllAboutLawyer’s guide on whether you can Can You Sue ICE For Wrongful Arrest? Legal Grounds And Realistic Outcomes.

Frequently Asked Questions About the Tyler Technologies NC eCourts Settlement

Is the Tyler Technologies $1.5 million settlement approved?

Not as of October 28, 2026. Plaintiffs filed an unopposed motion for preliminary approval on October 26, 2026, and a judge must act before notice and claims begin.

What is the Tyler Technologies eCourts settlement claim deadline?

No calendar deadline has been set. The agreement proposes 120 days after the Notice Date, which is 14 days after the preliminary-approval order.

Where is the official Tyler Technologies eCourts settlement website?

There is not one yet. The agreement names Kroll Settlement Administration LLC as administrator and provides for a website after preliminary approval. Watch the court docket for Case No. 1:23-cv-00423-WO-JGM and avoid unofficial claim sites.

How much can someone receive for a wrongful arrest?

The proposal is $2,800 per distinct qualifying wrongful arrest, subject to the $5,000 per-person cap and the $1.5 million overall cap.

How much can someone receive for being held in jail too long?

The proposal is $500 for a qualifying delay of more than six hours, plus $350 for each additional qualifying hour after 13 hours (bond or written-promise releases) or 20 hours (dismissal of all charges), within the $5,000 cap.

Does the Tyler Technologies settlement cover everyone arrested in North Carolina?

No. The arrest must meet the date, warrant, booking and software-error requirements, and exclusions apply, including federal matters, warrantless arrests, certain juvenile cases and incidents before eWarrants went live in the county.

Does the Tyler Technologies settlement cover Sheriff Garry McFadden?

No. The agreement excludes him and other government actors. The claims against him are still pending.

Official Sources and Records

1. Settlement agreement: Class Action Settlement Agreement and Release, ECF No. 159-1, filed October 26, 2026, the source for eligibility, payments, deadlines and exclusions.
2. Motion: Plaintiffs’ Unopposed Motion for Preliminary Approval, ECF No. 160, filed October 26, 2026.
3. Court opinion: March 31, 2025 order denying Tyler’s motion to dismiss the negligence claim.
4. News coverage of the proposed settlement: WRAL and The Assembly.
5. Law: Federal Rule of Civil Procedure 23, 42 U.S.C. § 1983 and N.C. Gen. Stat. § 99B-5.
6. Settlement website: none yet. Kroll Settlement Administration LLC is the named administrator, and the site is to be created after preliminary approval.

This article is for general information only and is not legal advice. AllAboutLawyer.com is not a law firm. The allegations against Tyler remain disputed, and the proposed settlement is not an admission of liability.

Researched and written by Israr Ahmad, legal content researcher and founder of AllAboutLawyer.com. All facts drawn from the filed settlement agreement (ECF No. 159-1) and motion for preliminary approval (ECF No. 160), with news coverage from WRAL and The Assembly; no official settlement website or preliminary-approval order was available, as of October 28, 2026. Last Updated: October 28, 2026.