class action suits
HB 2469 establishes statutory requirements for the process of maintaining and conducting class action lawsuits.
HB 2469 failed to pass the Judiciary Committee.
§ Stipulates that one or more members of a class of persons who are residents of Arizona may sue on behalf of all members if:
ü The class is so numerous that the joining of all members is not practical.
ü The determinations by a judge or jury on questions of law or fact can be applied to all class members.
ü The claims of the representative parties are similar to the claims of the class.
ü The representative parties will protect the interests of the class.
ü The class definition permits the identification of class members before any merit adjudication.
§ Stipulates that an action may be maintained as a class action if:
ü The prosecution of separate actions by or against individual members of a class would create a risk or inconsistent or varying adjudications that would establish incompatible standards of conduct or adjudications that would be dispositive of the interests of the other members.
ü The party that seeks to maintain the class action does not seek monetary relief.
ü The party that opposes the class has acted or refused to act on grounds applicable to the class.
ü Questions of law or fact that apply to all class members predominate over questions that only affect individual members.
ü Evidence that is likely to be admitted is substantially the same for all class members.
ü A class action is the superior choice for fair and efficient adjudication.
§ Stipulates factors for the court to consider in determining whether to qualify the class.
§ Allows the court to maintain a class action after a hearing and to alter, amend or withdraw its order at any time before the decision on the merits.
§ Requires the court to provide in writing reasons why the action should be maintained as a class action.
§ Requires a class action to comply with all requirements for certification to be maintained by the court as a class action.
§ Stipulates that there is a rebuttable presumption against the maintenance of a class action for claims in which class members have to prove knowledge, reliance or causation.
§ Asserts that a member of a class action is not relieved from proving the member’s cause of action, including individual injury and the amount of damages.
§ Requires the court to direct practicable notice to the members of the class and individual notice to all members who can be reasonably identified and sets forth required contents of the notice.
§ Requires the plaintiff to pay the expense of class notification by the court.
§ Authorizes the court to award all or part of the expenses incurred by the prevailing party upon termination of the action.
§ Stipulates that the judgement in an action maintained as a class action shall describe who the court finds to be members of the class and who the notice provided was directed to and who have not requested exclusion and the court finds to be members of the class.
§ Allows the court to divide a class into subclasses as appropriate.
§ Stipulates that for class actions, the court may make orders that:
ü Determine the course of the proceedings or prescribe measures that prevent undue repetition or complication in evidence or argument.
ü Require notice to be given to members of any step in the action, proposed entry of judgment or of the opportunity of members to signify whether they believe representation was fair and adequate.
ü Impose conditions on the representative parties or on intervenors.
ü Require that the pleadings be amended to eliminate allegations as to representation of absent persons and that the action proceeded accordingly.
ü Deal with other procedural matters.
§ Stipulates that a class action shall not be dismissed or compromised without the approval of the court.
§ Requires the court to:
ü Direct notice of the proposed dismissal or compromise to all class members.
ü Hold a hearing to determine if the terms of the proposed dismissal or compromise are fair, reasonable and adequate for the class.
ü Permit all parties to the action the opportunity to be heard.
§ Stipulates that representative parties and intervenors are subject to the same manner of discovery as parties in other civil actions.
§ Stipulates that other class members are subject to discovery in the same manner as those who are not parties but allows the court to require submission to discovery procedures that are applicable to representative parties and intervenors.
§ Stipulates that the court of appeals shall hear appeals from orders of the superior court granting or denying class action certification if a notice of appeal is filed within ten days after entry of the order.
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45th
Legislature
Second
Regular Session 3 March 27, 2002
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