9. Class Actions (Rule 23/CAFA)

Question 1

What is required for class action under Rule 23 of FRCP?

Answer 1

1) Numerosity
2) Common question of fact/law
3) Typicality
4) Adequate representation
5) Cause
- Prevent inconsistent results
- Appropriate relief (injunctive/declaratory)
- Class action as superior method + common qs predominate over individual issues
6) Notice => ALL members
7) SMJ/Supp
- Named reps’ citizenships diverse to D
- Single/Aggregated claims > $75,000 (at least one claim MUST exceed $75,000)

Question 2

What happens if court certifies class action under Rule 23?

Answer 2

Approve settlement

Dismiss class action

Offer ‘opt-out’ option to parties

Question 3

When may court deny counsel representation?

Answer 3

Individual control

Desirability of joint trial

Question 4

What examples would a class action not share common questions of fact or law?

Answer 4

Mass employment discrimination suits

Different injuries to members

D’s different mental states when injuring each member

Question 5

What is required for a class action under Class Action Fairness Act (CAFA)?

Answer 5

1) ANY member’s citizenship diverse to D
2) Aggregated claims > $5 million
3) At least 100 members

Question 6

What are the types of exceptions that would prevent class actions under CAFA?

Answer 6

Excluded actions

• D is state government
• Claim re federal securities
• Claim re corporation affairs

Mandatory decline of SMJ

1) At least 2/3 class members are citizens of Forum
2) D is citizen of Forum
3) Injury occurred in Forum
4) No similar action in last 3 years

Discretionary decline of SMJ

1) 1/3-2/3 class members are citizens of Forum
2) Principal injury occurred in Forum

Question 7

What is required for removal of class action from state court to federal court?

Answer 7

1) Same district + state
2) ANY defendant can remove
3) Defendant can still be citizen of Forum (unlike non-class actions)

Question 8

What is required for a class action under federal statute?

Answer 8

Federal statute