Rule 23. Class Actions
(a) Prerequisites. One or more members of a class may sue
or be sued as representative parties on behalf of all members 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) Types of Class Actions. A class action may be maintained if
Rule 23(a) is satisfied and if:
(1) prosecuting separate actions by or against
individual class members would create a risk of:
(A) inconsistent or varying
adjudications with respect to individual class members that would
establish incompatible standards of
conduct for the party opposing
the class; or
(B) adjudications with respect to
individual class members that, as a practical matter, would be
dispositive of the interests of the
other members not parties to the
individual adjudications or would substantially impair or impede their
ability to protect their
interests;
(2) the party opposing the class has acted or
refused to act on grounds that apply generally to the class, so that
final injunctive relief or
corresponding declaratory relief is appropriate
respecting the class as a whole; or
(3) the court finds that the questions of law or
fact common to class members predominate over any questions affecting
only individual members, and
that a class action is superior to other available
methods for fairly and efficiently adjudicating the controversy. The
matters pertinent to these
findings include:
(A) the class members’ interests
in individually controlling the prosecution or defense of separate
actions;
(B) the extent and nature of any
litigation concerning the controversy already begun by or against class
members;
(C) the desirability or
undesirability of concentrating the litigation of the claims in the
particular forum; and
(D) the likely difficulties in
managing a class action.
(c) Certification Order; Notice to Class Members; Judgment; Issues
Classes; Subclasses.
. . .
(2) Notice.
(A) For (b)(1) or (b)(2) Classes. For
any class certified under Rule 23(b)(1) or (b)(2), the court may direct
appropriate notice to the
class.
(B) For (b)(3) Classes. For any
class certified under Rule 23(b)(3), the court must direct to class
members the best notice that is
practicable under the
circumstances, including individual notice to all members who can be
identified through reasonable
effort. The notice must clearly
and concisely state in plain, easily understood language:
(i) the nature
of the action;
(ii) the
definition of the class certified;
(iii) the
class claims, issues, or defenses;
(iv) that a
class member may enter an appearance through an attorney if the member
so desires;
(v) that the
court will exclude from the class any member who requests exclusion;
(vi) the time
and manner for requesting exclusion; and
(vii) the
binding effect of a class judgment on members under Rule 23(c)(3).
. . .
(e) Settlement, Voluntary Dismissal, or Compromise. The claims,
issues, or defenses of a certified class may be settled, voluntarily
dismissed,
or compromised only with the court’s approval. The following procedures
apply to a proposed settlement, voluntary dismissal, or compromise:
(1) The court must direct notice in a reasonable
manner to all class members who would be bound by the proposal.
(2) If the proposal would bind class members, the
court may approve it only after a hearing and on finding that it is
fair, reasonable, and adequate.