| Class
Actions in General 
A
class action lawsuit is a court procedure under which a party, or a group of parties,
may sue as representatives for a larger class of people. To proceed, the Federal
court must permit the class action lawsuit . If the class action is certified,
members of the class must be given a notice, and an opportunity to exclude themselves
from the class action . Only the class members who ask to be excluded are not
bound by the judgment in the case.
Rule
23, Federal Rules of Civil Procedure (a) Prerequisites to a Class
Action. One or more members of a class may sue or be sued as representative parties
on behalf of all only if (1) the class is so numerous that joinder of all members
is impracticable, (2) there are questions of law or fact common to the class,
(3) the claims or defenses of the representative parties are typical of the claims
or defenses of the class, and (4) the representative parties will fairly and adequately
protect the interests of the class. (b) Class Actions Maintainable. An action
may be maintained as a class action if the prerequisites of subdivision (a) are
satisfied, and in addition: (1) the prosecution of separate actions by or
against individual members of the class would create a risk of (A) inconsistent
or varying adjudications with respect to individual members of the class which
would establish incompatible standards of conduct for the party opposing the class,
or (B) adjudications with respect to individual members of the class which
would as a practical matter be dispositive of the interests of the other members
not parties to the adjudications or substantially impair or impede their ability
to protect their interests; or (2) the party opposing the class has acted
or refused to act on grounds generally applicable to the class, thereby making
appropriate final injunctive relief or corresponding declaratory relief with respect
to the class as a whole; or (3) the court finds that the questions of law
or fact common to the members of the class predominate over any questions affecting
only individual members, and that a class action is superior to other available
methods for the fair and efficient adjudication of the controversy. The matters
pertinent to the findings include: (A) the interest of members of the class in
individually controlling the prosecution or defense of separate actions; (B) the
extent and nature of any litigation concerning the controversy already commenced
by or against members of the class; (C) the desirability or undesirability of
concentrating the litigation of the claims in the particular forum; (D) the difficulties
likely to be encountered in the management of a class action. (c) Determination
by Order Whether Class Action to be Maintained; Notice; Judgment; Actions Conducted
Partially as Class Actions. (1) As soon as practicable after the commencement
of an action brought as a class action, the court shall determine by order whether
it is to be so maintained. An order under this subdivision may be conditional,
and may be altered or amended before the decision on the merits. (2) In
any class action maintained under subdivision (b)(3), the court shall direct to
the members of the class the best notice practicable under the circumstances,
including individual notice to all members who can be identified through reasonable
effort. The notice shall advise each member that (A) the court will exclude the
member from the class if the member so requests by a specified date; (B) the judgment,
whether favorable or not, will include all members who do not request exclusion;
and (C) any member who does not request exclusion may, if the member desires,
enter an appearance through counsel. (3) The judgment in an action maintained
as a class action under subdivision (b)(1) or (b)(2), whether or not favorable
to the class, shall include and describe those whom the court finds to be members
of the class. The judgment in an action maintained as a class action under subdivision
(b)(3), whether or not favorable to the class, shall include and specify or describe
those to whom the notice provided in subdivision (c)(2) was directed, and who
have not requested exclusion, and whom the court finds to be members of the class. (4)
When appropriate (A) an action may be brought or maintained as a class action
with respect to particular issues, or (B) a class may be divided into subclasses
and each subclass treated as a class, and the provisions of this rule shall then
be construed and applied accordingly. (d) Orders in Conduct of Actions.
In the conduct of actions to which this rule applies, the court may make appropriate
orders: (1) determining the course of proceedings or prescribing measures to prevent
undue repetition or complication in the presentation of evidence or argument;
(2) requiring, for the protection of the members of the class or otherwise for
the fair conduct of the action, that notice be given in such manner as the court
may direct to some or all of the members of any step in the action, or of the
proposed extent of the judgment, or of the opportunity of members to signify whether
they consider the representation fair and adequate, to intervene and present claims
or defenses, or otherwise to come into the action; (3) imposing conditions on
the representative parties or on intervenors; (4) requiring that the pleadings
be amended to eliminate therefrom allegations as to representation of absent persons,
and that the action proceed accordingly; (5) dealing with similar procedural matters.
The orders may be combined with an order under Rule 16, and may be altered or
amended as may be desirable from time to time. (e) Dismissal or Compromise.
A class action shall not be dismissed or compromised without the approval of the
court, and notice of the proposed dismissal or compromise shall be given to all
members of the class in such manner as the court directs. (f) Appeals. A
court of appeals may in its discretion permit an appeal from an order of a district
court granting or denying class action certification under this rule if application
is made to it within ten days after entry of the order. An appeal does not stay
proceedings in the district court unless the district judge or the court of appeals
so orders. | 
Class
Action 
