In class-action lawsuits, the trial court’s decision on class certification often determines the ultimate outcome of the case. A denial of class certification can effectively end the case, because it is cost-prohibitive to litigate the claims individually. Conversely, the certification of a class drastically increases a defendant’s potential liability and litigation costs, thereby motivating defendants to settle in order to mitigate that risk.
In light of this practical reality, attorneys have long sought a mechanism to obtain immediate review of an adverse class-certification decision. The U.S. Supreme Court, however, has held that a decision on class certification is not a “final decision” that gives rise to a right to appeal under 28 U.S.C. Section 1291, as in Coopers & Lybrand v. Livesay, 437 U.S. 463, 470 (1978), (“We hold that orders relating to class certification are not independently appealable under Section 1291 prior to judgment.”). Instead, appellate courts have discretion to hear interlocutory appeals of class certification decisions, (Federal Rules of Civil Procedure 23(f)). Some plaintiffs have sought to manufacture a “final decision” for Section 1291 purposes, and effectively circumvent Rule 23(f)’s discretionary appeal, by voluntarily dismissing their individual claims following an adverse decision on class certification. Circuit courts are divided as to whether they have jurisdiction to hear such claims.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]
