Page 12 - MTMP_Magazine

New Class Action Rules Make Things Easier on Attorneys, Plaintiffs
by Christina Davis, TopClassActions.com
Class action attorneys are benefiting from newly adopted amendments to Rule 23 that should make it easier for them to navigate the class action settlement process.
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The updates, effective Dec. 1, 2018, are a welcome improvement to Federal Rule of Civil Procedure 23, which hasn’t been amended in 15 years.
The class action changes primarily cover:
• Notice of class action settlements • Approval criteria for settlements
• Handling objections to settlements • Appeals of Class certification
Let’s take a quick look to see how these new class action rules will affect class action lawsuits and settlements moving forward.
NOTICE OF CLASS ACTION SETTLEMENTS JUST
GOT EASIER
Notice criteria found in Federal Civil Procedure Rule 23(c)(2)(B) were updated to reflect more modern ways of communicating.
Parties to a class action settlement are required to let Class Members know about the settlement by providing a “notice” of the settlement.
Notice is an integral part of the class action settlement process; it allows those affected by the class action lawsuit the opportunity to take part in the settlement, object to its terms, or even opt out.
Notice procedures for a proposed class action settlement must meet certain criteria for court to approve the agreement.
The previous Federal Civil Procedure rules prior to the amendment relied on notice through publication in newspapers, magazines and the U.S. mail system, colloquially known as “snail mail,” among other arguably antiquated means.
Thankfully, notice rules were amended to allow settling parties to provide notice through more modern “electronic means, or other appropriate means.”
“Appropriate means” could include a class action settlement notice plan through a website like TopClassActions.com, which connects its 1.25 million monthly site visitors
and 700,000+ newsletter subscribers to open class action settlements they may qualify to participate in.
The use of electronic means of communication is ubiquitous in modern society. The change to the notice regulations under the Federal Civil Procedure Rules reflects more modern standards for communication.
NEW APPROVAL CRITERIA FOR SETTLEMENTS
When the plaintiffs and defendants agree to settle a class action lawsuit, the terms of that settlement agreement must be approved by a court at several points. The first pass
at approval is generally done through a motion for preliminary approval of the settlement agreement.
The amendments to this class action rule have added more criteria for the court to assess when making a preliminary approval decision.
When a court is asked to preliminarily approve a class action settlement agreement, the court must ensure that the agreement
is fair, reasonable, and adequate and that
it meets certain criteria under Federal Civil Procedure Rule 23(e).
The newly approved amendments to Rule 23(e) affect the court’s assessment of the following:
• The benefits offered to Class Members under the settlement agreement;
• How unclaimed settlement awards will be handled;
• The risk of continuing the class action lawsuit; and
• The evidence presented during discovery between the parties.
WAYS TO PREVENT PROFESSIONAL OBJECTORS
Class Members have the right to object to a proposed class action settlement if they do
not believe it is fair. However, there has
been a growing problem with so-called “professional” objectors who challenge settlement agreements in an attempt to receive payment from the plaintiffs to go away.
Professional objectors can throw a wrench into carefully crafted class action settlement agreements, potentially forcing parties back to the drawing board and increasing the time and expense of the litigation.
Under the amended Federal Civil Procedure rules, objectors must now be approved by the district court. Objectors will also be required to provide more information about their objection to the settlement.
These changes will allow courts to determine whether a Class Member is objecting in good faith or simply looking for a payout.
HOW TO APPEAL COURT ORDERS REGARDING CLASS CERTIFICATION
The final amendment to class action rules concerns the timing of appeals to a court order certifying a proposed Class.
A class action plaintiff’s proposed Class must be certified, or approved, by a court. Courts can issue a preliminary court order under Federal Civil Procedure Rule 23(e)
(1). Under the amended rule, an appeal may not be filed until the district court decides to certify the Class.
Though parties can no longer appeal a preliminary decision by a court to certify a proposed Class, the amendments did extend the time permitted for a party to petition for appeal to the United States to 45 days.
TopClassActions.com is the #1 source of class action news online. We connect our 1.25 million monthly viewers, 700,000+ newsletter subscribers, and 125,000 Facebook fans
with class action, mass tort and single event attorneys dedicated to consumer justice.
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