Rule 1.274.Relief afforded
Division II: Actions, Joinder of Actions and Parties · Last amended November 14, 2017 · Last verified July 15, 2026
Full Text of Rule 1.274
Plain-English Summary
Rule 1.274 gives the court wide latitude in fashioning relief for a certified class -- equitable, declaratory, monetary, or a combination, paid in a lump sum or in installments, to the class as a whole or to individual members. One real limit stands out: damages fixed by a statutory minimum measure of recovery cannot be recovered in a class action, so a class cannot use a statute's minimum-damages provision to multiply recovery across every member the way an individual plaintiff might invoke it in a single case.
When the class wins a money judgment, rule 1.274(3) lays out how it gets paid. The parties identify class members who can be found without spending a disproportionate share of the recovery on the search, and the reasonable expense of identifying and distributing funds comes out of the recovery itself, with the court's approval. The court supervises the whole process -- execution of the judgment, collection, and distribution according to members' interests -- and can minimize the expense along the way. For money that cannot be distributed because members could not be identified or located, or did not claim what was apportioned to them, the court holds a hearing and decides where it goes: to one or more states as unclaimed property, back to the defendant, or to the Iowa Supreme Court Lawyer Trust Account Commission. In choosing among those options, the court weighs factors like any unjust enrichment to the defendant, the defendant's willfulness, the impact of the relief on the defendant, other pending claims, criminal sanctions already imposed, and the loss the class suffered -- and it can attach conditions on how the defendant uses any money returned to it, to remedy the harm the litigation was about in the first place.
Frequently Asked Questions
Can a class action be used to recover a statutory minimum-damages amount for every class member?
No. Rule 1.274(2) specifically bars recovering damages fixed by a minimum measure of recovery provided by statute in a class action.
What happens to class settlement money that can't be distributed because members can't be found?
Rule 1.274(3)(e) has the court hold a hearing and decide, in whole or in part, to distribute that amount to one or more states as unclaimed property, to the defendant, or to the Iowa Supreme Court Lawyer Trust Account Commission.
What does the court consider in deciding whether leftover class funds go to a state or back to the defendant?
Rule 1.274(3)(f) lists factors including any unjust enrichment of the defendant, the defendant's willfulness, the impact of the relief on the defendant, other pending claims, criminal sanctions imposed, and the loss suffered by the class.
Who pays the cost of identifying and locating class members entitled to a share of the judgment?
Rule 1.274(3)(b) allows the reasonable expense of identification and distribution to be paid, with the court's approval, out of the funds being distributed.
Can the court place conditions on money returned to the defendant instead of paid to the class?
Yes. Rule 1.274(3)(g) lets the court impose conditions on the defendant's use of money distributed to it, to remedy or alleviate the harm at issue in the case.