Sometimes, the strict rules governing certification of a class
action under Federal Rule of Civil Procedure 23 can actually hinder
settlement of a class, even if the parties agree that this is the
best result. Yesterday, the Ninth Circuit issued an en banc
decision in In re Hyundai and Kia Fuel Economy Litigation
that makes it a little easier to resolve nationwide class actions,
and clarifies that the standards for certification are different
(more relaxed) in the settlement context.
As we reported here earlier, a panel of the Ninth Circuit
previously vacated a district court's approval of a nationwide
class action settlement because the district court failed to
address choice-of-law issues and variations in relevant state laws,
and also improperly "presumed" reliance on allegedly
"misleading advertising." The case demonstrates the
significant obstacles to certifying a nationwide class. That
decision was written by Judge Jacqueline H. Nguyen with a dissent
by Judge
