The Problem of Settlement Class Actions

Howard M. Erichson

Fordham University School of Law

June 14, 2013

George Washington Law Review, Forthcoming
Fordham Law Legal Studies Research Paper No. 2243155

This article argues that class actions should never be certified solely for purposes of settlement. Contrary to the widespread “settlement class action” practice that has emerged in recent decades, contrary to current case law permitting settlement class certification, and contrary to recent proposals that would extend and facilitate settlement class actions, this article contends that settlement class actions are ill-advised as a matter of litigation policy and illegitimate as a matter of judicial authority. This is not to say that disputes should not be resolved on a classwide basis, or that class actions should not be resolved by negotiated resolutions. Rather, this article contends that if a dispute is to be resolved on a classwide basis, then the resolution should occur after a court has found the matter suitable for classwide adjudication regardless of settlement.

Number of Pages in PDF File: 32

Keywords: settlement class action, Amchem, AIG, DB Investments, reverse auction, monopsony, Rules Enabling Act, Rule 23, class settlement

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Date posted: April 2, 2013 ; Last revised: August 6, 2013

Suggested Citation

Erichson, Howard M., The Problem of Settlement Class Actions (June 14, 2013). George Washington Law Review, Forthcoming; Fordham Law Legal Studies Research Paper No. 2243155. Available at SSRN: http://ssrn.com/abstract=2243155 or http://dx.doi.org/10.2139/ssrn.2243155

Contact Information

Howard M. Erichson (Contact Author)
Fordham University School of Law ( email )
140 West 62nd Street
New York, NY 10023
United States
646-312-8233 (Phone)
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