Rule 23. Class actions

Class actions.

(a) Prerequisites to a class action. One or more members of a class may sue or be sued as representative parties on behalf of all only if (1) the class is so numerous that joinder of all members is impracticable, (2) there are questions of law or fact common to the class, (3) the claims or defenses of the representative parties are typical of the claims or defenses of the class, and (4) the representative parties will fairly and adequately protect the interests of the class.

(b) Class actions maintainable. An action may be maintained as a class action if the prerequisites of subdivision (a) are satisfied, and in addition:

(1) the prosecution of separate actions by or against individual members of the class would create a risk of

(A) inconsistent or varying adjudications with respect to individual members of the class which would establish incompatible standards of conduct for the party opposing the class, or

(B) adjudications with respect to individual members of the class which would as a practical matter be dispositive of the interests of the other members not parties to the adjudications or substantially impair or impede their ability to protect their interests; or

(2) the party opposing the class has acted or refused to act on grounds generally applicable to the class, thereby making appropriate final injunctive relief or corresponding declaratory relief with respect to the class as a whole; or

(3) the court finds that the questions of law or fact common to the members of the class predominate over any questions affecting only individual members, and that a class action is superior to other available methods for the fair and efficient adjudication of the controversy. The matters pertinent to the findings include: (A) the interest of members of the class in individually controlling the prosecution or defense of separate actions; (B) the extent and nature of any litigation concerning the controversy already commenced by or against members of the class; (C) the desirability or undesirability of concentrating the litigation of the claims in the particular forum; (D) the difficulties likely to be encountered in the management of a class action.

(c) Determination by order whether class action to be maintained; notice; judgment; actions conducted partially as class actions.

(1) At an early practicable time, consistent with Alabama statutory law, the court shall determine by order whether an action brought as a class action is to be so maintained. An order that grants or denies class certification may be altered or amended before final judgment.

(2) For any class certified under Rule 23(b)(1) or (b)(2), the court may direct appropriate notice to the class. For any class certified under Rule 23(b)(3) -- or upon ordering notice under Rule 23(e) to a class proposed to be certified for purposes of settlement under Rule 23(b)(3) -- the court must direct to class members the best notice that is practicable under the circumstances, including individual notice to all members who can be identified through reasonable effort. The notice may be by one or more of the following: United States mail, electronic means, or other appropriate means. The notice shall advise each member that (A) the court will exclude the member from the class if the member so requests by a specified date; (B) the judgment, whether favorable or not, will include all members who do not request exclusion; and (C) any member who does not request exclusion may, if the member desires, enter an appearance through counsel.

(3) The judgment in an action maintained as a class action under subdivision (b)(1) or (b)(2), whether or not favorable to the class, shall include and describe those whom the court finds to be members of the class. The judgment in an action maintained as a class action under subdivision (b)(3), whether or not favorable to the class, shall include and specify or describe those to whom the notice provided in subdivision (c)(2) was directed, and who have not requested exclusion, and whom the court finds to be members of the class.

(4) When appropriate (A) an action may be brought or maintained as a class action with respect to particular issues, or (B) a class may be divided into subclasses and each subclass treated as a class, and the provisions of this rule shall then be construed and applied accordingly.

(d) Orders in conduct of actions. In the conduct of actions to which this rule applies, the court may make appropriate orders: (1) determining the course of proceedings or prescribing measures to prevent undue repetition or complication in the presentation of evidence or argument; (2) requiring, for the protection of the members of the class or otherwise for the fair conduct of the action, that notice be given in such manner as the court may direct to some or all of the members of any step in the action, or of the proposed extent of the judgment, or of the opportunity of members to signify whether they consider the representation fair and adequate, to intervene and present claims or defenses, or otherwise to come into the action; (3) imposing conditions on the representative parties or on intervenors; (4) requiring that the pleadings be amended to eliminate therefrom allegations as to representation of absent persons, and that the action proceed accordingly; (5) dealing with similar procedural matters. The orders may be combined with an order under Rule 16, and may be altered or amended as may be desirable from time to time.

(e) Settlement, voluntary dismissal or compromise. The claims, issues, or defenses of a certified class -- or a class proposed to be certified for purposes of settlement -- may be settled, voluntarily dismissed, or compromised only with the court's approval, and notice of the proposed dismissal or compromise shall be given to all members of the class in such manner as the court directs.

(dc) District court rule. Rule 23 does not apply in the district courts. [Amended eff.10-1-95; Amended 3-31-2021, eff 5-1-2021.]

Committee Notes

Committee Comments on 1973 Adoption This rule is a substantial restatement of a practice which developed in equity, but the procedure is here clearly defined and made available in all actions, whether legal or equitable. It does not deal directly with shareholders actions (see Rule 23.1) and actions by or against unincorporated associations (see Rule 23.2). Older concepts of “true,” “hybrid” and “spurious” often criticized as being more appropriate in the lecture hall rather than the courtroom, are scrapped in favor of more practical criteria. Rule 23(a) catalogues four prerequisites. The class must be so numerous as to preclude joinder. Common questions of law or fact must be present. The claims or defenses of the representatives must be typical of the contentions of the class. Finally, the representatives themselves must be capable of adequate representation. Rule 23(b) expands upon the prerequisites subject to the fundamentals noted above. It contains a series of additional ingredients, any one of which can serve as the essential fifth ingredient when taken in conjunction with the four ingredients required in Rule 23(a). Of course, it is possible for more than one Rule 23(b) alternative to be applicable. This becomes important for purposes of the appropriate type of notice discussed below. Rule 23(b)(1) offers two sets of circumstances, either one of which is capable of serving as the required fifth ingredient. If there is risk of inconsistent results leaving the party opposing the class in a quandary as to how he should govern himself or, on the other hand, adjudication on an individual basis might be injurious to contentions of other individuals although not necessarily as devastating as a defense of res judicata, Rule 23(b)(1) suffices. Rule 23(b)(2) can be resorted to in the event Rule 23(b)(1) does not yield the needed extra ingredient. Therein, an opposing party has acted or refused to act on grounds generally applicable to the class as a whole, making appr