Abstract

http://ssrn.com/abstract=2214333
 


 



Future Conduct and the Limits of Class-Action Settlements


James Grimmelmann


University of Maryland Francis King Carey School of Law

February 9, 2013

91 North Carolina Law Review 387 (2013)
NYLS Legal Studies Research Paper, Forthcoming
Georgetown Public Law Research Paper No. 13-015

Abstract:     
This Article identifies a new and previously unrecognized trend in class-action settlements: releases for the defendant’s future conduct. Such releases, which hold the defendant harmless for wrongs it will commit in the future, are unusually dangerous to class members and to the public. Even more than the “future claims” familiar to class-action scholars, future-conduct releases pose severe informational problems for class members and for courts. Worse, they create moral hazard for the defendant, give it concentrated power, and thrust courts into a prospective planning role they are ill-equipped to handle.

Courts should guard against the dangers of future-conduct releases with a standard and a rule. The standard is heightened scrutiny for all settlements containing such releases; the Article describes the warning signs courts must be alert to and the safeguards courts should insist on. The rule is parity of preclusion: a class-action settlement may release future-conduct claims if and only if they could have been lost in litigation. Parity of preclusion elegantly harmonizes a wide range of case law while directly addressing the normative problems with future- conduct releases. The Article concludes by applying its recommendations to seven actual future-conduct settlements, in each case yielding a better result or clearer explanation than the court was able to provide.

Number of Pages in PDF File: 90

Keywords: class actions, settlement, preclusion, Google Books

JEL Classification: K41

Accepted Paper Series


Download This Paper

Date posted: February 11, 2013 ; Last revised: December 3, 2013

Suggested Citation

Grimmelmann, James, Future Conduct and the Limits of Class-Action Settlements (February 9, 2013). 91 North Carolina Law Review 387 (2013); NYLS Legal Studies Research Paper, Forthcoming; Georgetown Public Law Research Paper No. 13-015. Available at SSRN: http://ssrn.com/abstract=2214333

Contact Information

James Grimmelmann (Contact Author)
University of Maryland Francis King Carey School of Law ( email )
500 West Baltimore Street
Baltimore, MD 21201-1786
United States
Feedback to SSRN


Paper statistics
Abstract Views: 242
Downloads: 48

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo4 in 0.265 seconds