Chapter § 5.06 Judicial Management of Class Actions

• Jurisdiction: United States
• Publication year: 2020

§ 5.06 Judicial Management of Class Actions

Both proposed class and defense counsel should develop a plan to manage a class action from the inception of case. Generally, the plaintiff’s management plan is designed to drive the case toward a classwide settlement or judgment as quickly and efficiently as possible. On the other hand, the defendant typically designs its case management plan to dispose of the class action—either actually or effectively—via motion, settlement or trial. Regardless, it is critical that both counsel understand the judicial tools and rules within which their plan must operate.

As a preliminary matter, the Class Action Fairness Act of 2005 (“CAFA”) broadened federal court jurisdiction over class actions. Under CAFA, a defendant may invoke federal jurisdiction, subject to certain exceptions and exclusions, if a class has more than 100 members, the parties are minimally diverse and the amount in controversy exceeds $5 million.¹⁵⁷ Studies have shown that “CAFA has caused the number of diversity class actions filed in and removed to the federal courts to increase appreciably.”¹⁵⁸ Because many class actions are now heard in federal court due to CAFA, this section outlines the management-related rules and tools at the disposal of federal judges that shape and guide counsel’s development of a successful case management plan for the pre-settlement and pretrial phase of a class action.

Judicial management of a class action begins soon after an action is filed, or removed to, federal court, most typically in an initial case management conference under Federal Rule of Civil Procedure 16.

At the Rule 16 conference, the court is likely to consider, at a minimum (1) whether to hear and determine threshold dispositive motions, namely, motions that do not require extensive discovery, before hearing and determining class certification motions (e.g., challenges to jurisdiction and venue, motions to dismiss for failure to state a claim, and motions for summary judgment); (2) whether to appoint interim class counsel during the period before the court decides class certification; (3) whether and how to obtain information from parties and their counsel about the status of all related cases pending in state or federal courts, including pretrial preparation, schedules and orders, and the need for any coordinated activity; and (4) whether the parties need discovery to decide whether to certify the proposed class.¹⁵⁹

In light of the potential of duplicative...