Rule 23.Class Actions

Division (A) sets four prerequisites that must all be met before a class action can proceed at all: the class must be so numerous that joining everyone individually is impracticable; there must be questions of law or fact common to the class; the representative parties’ claims or defenses must be typical of the class; and the representatives must be able to adequately protect the interests of the class.

Division (B) then requires the case to fit one of three additional categories. The first covers cases where separate lawsuits by individual class members would risk inconsistent standards of conduct for the opposing party, or would as a practical matter be dispositive of, or substantially impair, the interests of class members who are not parties. The second covers cases where the opposing party has acted on grounds that apply to the whole class, making injunctive or declaratory relief for the class as a whole appropriate. The third — the most familiar in damages cases — requires that common questions predominate over questions affecting only individual members, and that a class action is the superior method for resolving the controversy, judged against factors including how much control individual members want over their own cases, existing litigation over the same controversy, the desirability of one forum, and the difficulty of managing the class.

Division (C) governs certification itself. The court must decide at an early practicable time whether to certify the action, and a certification order must define the class and its claims, issues, or defenses and appoint class counsel; that order may be altered before final judgment. Notice requirements differ by category: notice to a (B)(1) or (B)(2) class is left to the court’s discretion, but a (B)(3) class must receive the best notice practicable, including individual notice to identifiable members, describing the action, the class definition, the claims at issue, the right to appear through counsel, the right to request exclusion, and the binding effect of a class judgment. The judgment itself must identify or describe the class members bound by it, and the rule allows certification of particular issues only, or division of a class into subclasses.

Division (D) gives the court broad authority to manage the litigation — controlling the order of proof, requiring notice of key steps to protect absent members, imposing conditions on representatives or intervenors, and amending pleadings to remove improper allegations about representing absent persons. Division (E) requires court approval before a certified class’s claims can be settled, dismissed, or compromised, with notice to the class, a hearing on whether the proposal is adequate, disclosure of any side agreements, a renewed opportunity to opt out in some (B)(3) settlements, and a right for class members to object. Divisions (F) and (G) address appointment of class counsel — based on the work already done investigating the claims, relevant experience, knowledge of the law, and committed resources — and the procedure for awarding attorney’s fees and nontaxable costs by motion, with notice and an opportunity to object. Division (H) requires the claims of the class to be aggregated in determining whether the court has jurisdiction.