Managing Class Action in California
In California, there are twelves Rules of Court to manage class actions cases.
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Rule 3.760. Application
(a) Class actions
The rules in this chapter apply to each class action brought under Civil Code section 1750 et seq. or Code of Civil Procedure section 382 until the court finds the action is not maintainable as a class action or revokes a prior class certification.
(Subd (a) amended effective January 1, 2007.)
(b) Relief from compliance with rules
The court, on its own motion or on motion of any named party, may grant relief from compliance with the rules in this chapter in an appropriate case.
(Subd (b) amended effective January 1, 2007.)
Rule 3.760 amended and renumbered effective January 1, 2007; adopted as rule 1850 effective January 1, 2002.
Rule 3.761. Form of complaint
(a) Caption of pleadings
A complaint for or against a class party must include in the caption the designation “CLASS ACTION.” This designation must be in capital letters on the first page of the complaint, immediately below the case number but above the description of the nature of the complaint.
(b) Heading and class action allegations
The complaint in a class action must contain a separate heading entitled “CLASS ACTION ALLEGATIONS,” under which the plaintiff describes how the requirements for class certification are met.
Rule 3.761 renumbered effective January 1, 2007; adopted as rule 1851 effective January 1, 2002.
Rule 3.762. Case conference
(a) Purpose
One or more conferences between the court and counsel for the parties may be held to discuss class issues, conduct and scheduling of discovery, scheduling of hearings, and other matters. No evidence may be presented at the conference, but counsel must be fully prepared to discuss class issues and must possess authority to enter into stipulations.
(b) Notice by the parties
Notice of the conference may be given by any party. If notice is given by a named plaintiff, notice must be served on all named parties to the action. If notice is given by a defendant, notice must be served only on the parties who have appeared. Within 10 calendar days after receipt of the notice, the plaintiff must serve a copy on each named party who has not appeared in the action and must file a declaration of service. If the plaintiff is unable to serve any party, the plaintiff must file a declaration stating the reasons for failure of service.
(Subd (b) amended effective January 1, 2007.)
(c) Notice by the court
The court may give notice of the conference to the plaintiff. Within 10 calendar days after receipt of the notice given by the court, the plaintiff must serve a copy of the notice on all parties who have been served in the action, whether they have appeared or not, and must file a declaration of service. If the plaintiff is unable to serve any party, the plaintiff must file a declaration stating the reasons for failure of service.
(Subd (c) amended effective January 1, 2007.)
(d) Timing of notice
The notice must be filed and served on the parties at least 20 calendar days before the scheduled date of the conference.
(Subd (d) amended effective January 1, 2007.)
(e) Timing of conference
A conference may be held at any time after the first defendant has appeared. Before selecting a conference date, the party noticing the conference must:
(1) Obtain prior approval from the clerk of the department assigned to hear the class action; and
(2) Make reasonable efforts to accommodate the schedules of all parties entitled to receive notice under (b).
(Subd (e) amended effective January 1, 2007.)
Rule 3.762 amended and renumbered effective January 1, 2007; adopted as rule 1852 effective January 1, 2002.
Rule 3.763. Conference order
At the conclusion of the conference, the court may make an order:
(1) Approving any stipulations of the parties;
(2) Establishing a schedule for discovery;
(3) Setting the date for the hearing on class certification;
(4) Setting the dates for any subsequent conferences; and
(5) Addressing any other matters related to management of the case.
Rule 3.763 renumbered effective January 1, 2007; adopted as rule 1853 effective January 1, 2002.
Rule 3.764. Motion to certify or decertify a class or amend or modify an order certifying a class
(a) Purpose
Any party may file a motion to:
(1) Certify a class;
(2) Determine the existence of and certify subclasses;
(3) Amend or modify an order certifying a class; or
(4) Decertify a class.
(b) Timing of motion, hearing, extension, deferral
A motion for class certification should be filed when practicable. In its discretion, the court may establish a deadline for the filing of the motion, as part of the case conference or as part of other case management proceedings. Any such deadline must take into account discovery proceedings that may be necessary to the filing of the motion.
(c) Format and filing of motion
(1) Time for service of papers
Notice of a motion to certify or decertify a class or to amend or modify a certification order must be filed and served on all parties to the action at least 28 calendar days before the date appointed for hearing. Any opposition to the motion must be served and filed at least 14 calendar days before the noticed or continued hearing, unless the court for good cause orders otherwise. Any reply to the opposition must be served and filed at least 5 calendar days before the noticed or continued date of the hearing, unless the court for good cause orders otherwise. The provisions of Code of Civil Procedure section 1005 otherwise apply.
(2) Length of papers
An opening or responding memorandum filed in support of or in opposition to a motion for class certification must not exceed 20 pages. A reply memorandum must not exceed 15 pages. The provisions of rule 3.1113 otherwise apply.
(3) Documents in support
The documents in support of a motion for class certification consist of the notice of motion; a memorandum; evidence in support of the motion in the form of declarations of counsel, class representatives, or other appropriate declarants; and any requests for judicial notice.
(4) Documents in opposition
The documents in opposition to the motion consist of the opposing party’s memorandum; the opposing party’s evidence in opposition to the motion, including any declarations of counsel or other appropriate declarants; and any requests for judicial notice.
(Subd (c) amended effective January 1, 2007.)
(d) Presentation of evidence
Evidence to be considered at the hearing must be presented in accordance with rule 3.1306.
(Subd (d) amended effective January 1, 2007.)
(e) Stipulations
The parties should endeavor to resolve any uncontroverted issues by written stipulation before the hearing. If all class issues are resolved by stipulation of the named parties and approved by the court before the hearing, no hearing on class certification is necessary.
Rule 3.764 amended and renumbered effective January 1, 2007; adopted as rule 1854 effective January 1, 2002.
Rule 3.765. Class action order
(a) Class described
An order certifying, amending, or modifying a class must contain a description of the class and any subclasses.
(b) Limited issues and subclasses
When appropriate, an action may be maintained as a class action limited to particular issues. A class may be divided into subclasses.
Rule 3.765 renumbered effective January 1, 2007; adopted as rule 1855 effective January 1, 2002.
Rule 3.766. Notice to class members
(a) Party to provide notice
If the class is certified, the court may require either party to notify the class of the action in the manner specified by the court.
(b) Statement regarding class notice
The class proponent must submit a statement regarding class notice and a proposed notice to class members. The statement must include the following items:
(1) Whether notice is necessary;
(2) Whether class members may exclude themselves from the action;
(3) The time and manner in which notice should be given;
(4) A proposal for which parties should bear the costs of notice; and,
(5) If cost shifting or sharing is proposed under subdivision (4), an estimate of the cost involved in giving notice.
(c) Order
Upon certification of a class, or as soon thereafter as practicable, the court must make an order determining:
(1) Whether notice to class members is necessary;
(2) Whether class members may exclude themselves from the action;
(3) The time and manner of notice;
(4) The content of the notice; and
(5) The parties responsible for the cost of notice.
(d) Content of class notice
The content of the class notice is subject to court approval. If class members are to be given the right to request exclusion from the class, the notice must include the following:
(1) A brief explanation of the case, including the basic contentions or denials of the parties;
(2) A statement that the court will exclude the member from the class if the member so requests by a specified date;
(3) A procedure for the member to follow in requesting exclusion from the class;
(4) A statement that the judgment, whether favorable or not, will bind all members who do not request exclusion; and
(5) A statement that any member who does not request exclusion may, if the member so desires, enter an appearance through counsel.
(e) Manner of giving notice
In determining the manner of the notice, the court must consider:
(1) The interests of the class;
(2) The type of relief requested;
(3) The stake of the individual class members;
(4) The cost of notifying class members;
(5) The resources of the parties;
(6) The possible prejudice to class members who do not receive notice; and
(7) The res judicata effect on class members.
(f) Court may order means of notice
If personal notification is unreasonably expensive or the stake of individual class members is insubstantial, or if it appears that all members of the class cannot be notified personally, the court may order a means of notice reasonably calculated to apprise the class members of the pendency of the action-for example, publication in a newspaper or magazine; broadcasting on television, radio, or the Internet; or posting or distribution through a trade or professional association, union, or public interest group.
(Subd (f) lettered effective January 1, 2007; adopted as part of subd (e) effective January 1, 2002.)
Rule 3.767. Orders in the conduct of class actions
(a) Court orders
In the conduct of a class action, the court may make orders that:
(1) Require that some or all of the members of the class be given notice in such manner as the court may direct of any action in the proceeding, or of their opportunity to seek to appear and indicate whether they consider the representation fair and adequate, or of the proposed extent of the judgment;
(2) Impose conditions on the representative parties or on intervenors;
(3) Require that the pleadings be amended to eliminate allegations as to representation of absent persons, and that the action proceed accordingly;
(4) Facilitate the management of class actions through consolidation, severance, coordination, bifurcation, intervention, or joinder; and
(5) Address similar procedural matters.
(Subd (a) amended effective January 1, 2007.)
(b) Altered or amended orders
The orders may be altered or amended as necessary.
(Subd (b) amended effective January 1, 2007.)
Rule 3.767 amended and renumbered effective January 1, 2007; adopted as rule 1857 effective January 1, 2002.
Rule 3.768. Discovery from unnamed class members
(a) Types of discovery permitted
The following types of discovery may be sought, through service of a subpoena and without a court order, from a member of a class who is not a party representative or who has not appeared:
(1) An oral deposition;
(2) A written deposition; and
(3) A deposition for production of business records and things.
(b) Motion for protective order
A party representative, deponent, or other affected person may move for a protective order to preclude or limit the discovery.
(c) Interrogatories require court order
A party may not serve interrogatories on a member of a class who is not a party representative or who has not appeared, without a court order.
(d) Determination by court
In deciding whether to allow the discovery requested under (a) or (c), the court must consider, among other relevant factors:
(1) The timing of the request;
(2) The subject matter to be covered;
(3) The materiality of the information being sought;
(4) The likelihood that class members have such information;
(5) The possibility of reaching factual stipulations that eliminate the need for such discovery;
(6) Whether class representatives are seeking discovery on the subject to be covered; and
(7) Whether discovery will result in annoyance, oppression, or undue burden or expense for the members of the class.
(Subd (d) amended effective January 1, 2007.)
Rule 3.768 amended and renumbered effective January 1, 2007; adopted as rule 1858 effective January 1, 2002.
Rule 3.769. Settlement of class actions
(a) Court approval after hearing
A settlement or compromise of an entire class action, or of a cause of action in a class action, or as to a party, requires the approval of the court after hearing.
(Subd (a) amended effective January 1, 2007.)
(b) Attorney’s fees
Any agreement, express or implied, that has been entered into with respect to the payment of attorney’s fees or the submission of an application for the approval of attorney’s fees must be set forth in full in any application for approval of the dismissal or settlement of an action that has been certified as a class action.
(Subd (b) amended effective January 1, 2007.)
(c) Preliminary approval of settlement
Any party to a settlement agreement may serve and file a written notice of motion for preliminary approval of the settlement. The settlement agreement and proposed notice to class members must be filed with the motion, and the proposed order must be lodged with the motion.
(Subd (c) amended effective January 1, 2007.)
(d) Order certifying provisional settlement class
The court may make an order approving or denying certification of a provisional settlement class after the preliminary settlement hearing.
(e) Order for final approval hearing
If the court grants preliminary approval, its order must include the time, date, and place of the final approval hearing; the notice to be given to the class; and any other matters deemed necessary for the proper conduct of a settlement hearing.
(f) Notice to class of final approval hearing
If the court has certified the action as a class action, notice of the final approval hearing must be given to the class members in the manner specified by the court. The notice must contain an explanation of the proposed settlement and procedures for class members to follow in filing written objections to it and in arranging to appear at the settlement hearing and state any objections to the proposed settlement.
(Subd (f) amended effective January 1, 2007.)
(g) Conduct of final approval hearing
Before final approval, the court must conduct an inquiry into the fairness of the proposed settlement.
(h) Judgment and retention of jurisdiction to enforce
If the court approves the settlement agreement after the final approval hearing, the court must make and enter judgment. The judgment must include a provision for the retention of the court’s jurisdiction over the parties to enforce the terms of the judgment. The court may not enter an order dismissing the action at the same time as, or after, entry of judgment.
(Subd (h) amended effective January 1, 2009.)
Rule 3.769 amended effective January 1, 2009; adopted as rule 1859 effective January 1, 2002; previously amended and renumbered effective January 1, 2007.
Rule 3.770. Dismissal of class actions
(a) Court approval of dismissal
A dismissal of an entire class action, or of any party or cause of action in a class action, requires court approval. The court may not grant a request to dismiss a class action if the court has entered judgment following final approval of a settlement. Requests for dismissal must be accompanied by a declaration setting forth the facts on which the party relies. The declaration must clearly state whether consideration, direct or indirect, is being given for the dismissal and must describe the consideration in detail.
(Subd (a) amended effective January 1, 2009; adopted as untitled subd effective January 1, 1984; previously amended and lettered as subd (a) effective January 1, 2002; previously amended effective January 1, 2007.)
(b) Hearing on request for dismissal
The court may grant the request without a hearing. If the request is disapproved, notice of tentative disapproval must be sent to the attorneys of record. Any party may seek, within 15 calendar days of the service of the notice of tentative disapproval, a hearing on the request. If no hearing is sought within that period, the request for dismissal will be deemed denied.
(Subd (b) amended effective January 1, 2007; adopted as untitled subd effective January 1, 1984; previously amended and lettered as subd (b) effective January 1, 2002.)
(c) Notice to class of dismissal
If the court has certified the class, and notice of the pendency of the action has been provided to class members, notice of the dismissal must be given to the class in the manner specified by the court. If the court has not ruled on class certification, or if notice of the pendency of the action has not been provided to class members in a case in which such notice was required, notice of the proposed dismissal may be given in the manner and to those class members specified by the court, or the action may be dismissed without notice to the class members if the court finds that the dismissal will not prejudice them.
(Subd (c) amended effective January 1, 2007; adopted effective January 1, 2002.)
Rule 3.770 amended effective January 1, 2009; adopted as rule 365 effective January 1, 1984; previously amended and renumbered as rule 1860 effective January 1, 2002, and as rule 3.770 effective January 1, 2007.
Rule 3.771. Judgment
(a) Class members to be included in judgment
The judgment in an action maintained as a class action must include and describe those whom the court finds to be members of the class.
(Subd (a) amended and lettered effective January 1, 2007; adopted as unlettered subd effective January 1, 2002.)
(b) Notice of judgment to class
Notice of the judgment must be given to the class in the manner specified by the court.
(Subd (b) amended and lettered effective January 1, 2007; adopted as unlettered subd effective January 1, 2002.)
Rule 3.771 amended and renumbered effective January 1, 2007; adopted as rule 1861 effective January 1, 2002.