State Law Prohibiting Class Actions Does Not Preclude Court From Maintaining Certification And Approving Settlement Agreement

The Sixth Circuit recently affirmed approval of a class action settlement agreement, holding that "a post-settlement change in the law does not alter the binding nature of the parties' settlement agreement, nor does it violate Rule 23 . . . or the Rules Enabling Act." The plaintiffs brought a class action against their former employers, alleging violations of the Kentucky Wage and Hour Act (KWHA). After the district court certified a class, the parties reached a class-wide settlement and informed the court that they would be filing formal settlement documents.

Before filing those documents, however, the defendants discovered a recent decision by the Kentucky Court of Appeals, which held that the KWHA could not support class action claims. The defendants moved to decertify the class, arguing that, based on the Kentucky appellate decision: (1) certification violated the terms of Rule 23(a) and (b)(3); (2) certification violated the Rules Enabling Act because it modified