Alert
Alert
06.23.11
On June 20, 2011, the U.S. Supreme Court handed down its much-anticipated decision in Wal-Mart Stores, Inc. v. Dukes, 564 U.S. __ (2011). In reversing the Ninth Circuit’s certification of an immense plaintiff class, the Court clarified the class certification standards in ways that will be helpful to defendants.
Class certification is governed by Rule 23 of the Federal Rules of Civil Procedure. To certify a class, the court must find that each of four criteria listed in Rule 23(a) is satisfied. One of those criteria, under Rule 23(a)(2), is the existence of "questions of law or fact common to the class." In addition, the court must find that one of three alternative tests listed in Rule 23(b) is satisfied. One of those tests, under Rule 23(b)(2), is that injunctive or declaratory relief is appropriate for the class as a whole. Another test, under Rule 23(b)(3), requires that the common issues predominate over individual ones and that a class action is the superior method of adjudicating the claims.
The Supreme Court’s decision interprets Rule 23, and it has three important aspects. First, it confirms that courts must conduct a “rigorous analysis” of whether the elements of Federal Rule of Civil Procedure 23 are satisfied at the class certification stage, even where such an analysis overlaps with the merits and requires testing the plaintiff's allegations as a factual matter. Second, by a 5-4 vote, the Supreme Court tightened the requirements for “commonality” under Rule 23(a)(2). Finally, the Court unanimously held that a class cannot be certified under Rule 23(b)(2) if the class seeks monetary relief on an individual basis.
Download: Wal-Mart v. Dukes: Supreme Court Reverses Ninth Circuit, Clarifies Class Certification Standards