(a) Court approval after hearing A settlement or compromise of an entire class action, or of a cause of action in a class action, or as to a party, requires the approval of the court after hearing. (Subd (a) amended effective January 1, 2007.)
Rule 3.769.Settlement of class actions
Division 7. Civil Case Management · Chapter 6. Management of Class Actions · Last amended 2009 · Last verified July 29, 2026
In one sentenceRule 3.769 requires court approval, after a hearing, for any settlement of a class action, and it lays out the steps from preliminary approval and class notice through the fairness inquiry and final judgment retaining jurisdiction to enforce the settlement.
Full Text of Rule 3.769
(b) Attorney’s fees Any agreement, express or implied, that has been entered into with respect to the payment of attorney’s fees or the submission of an application for the approval of attorney’s fees must be set forth in full in any application for approval of the dismissal or settlement of an action that has been certified as a class action. (Subd (b) amended effective January 1, 2007.)
(c) Preliminary approval of settlement Any party to a settlement agreement may serve and file a written notice of motion for preliminary approval of the settlement. The settlement agreement and proposed notice to class members must be filed with the motion, and the proposed order must be lodged with the motion. (Subd (c) amended effective January 1, 2007.)
(d) Order certifying provisional settlement class The court may make an order approving or denying certification of a provisional settlement class after the preliminary settlement hearing.
(e) Order for final approval hearing If the court grants preliminary approval, its order must include the time, date, and place of the final approval hearing; the notice to be given to the class; and any other matters deemed necessary for the proper conduct of a settlement hearing.
(f) Notice to class of final approval hearing If the court has certified the action as a class action, notice of the final approval hearing must be given to the class members in the manner specified by the court. The notice must contain an explanation of the proposed settlement and procedures for class members to follow in filing written objections to it and in arranging to appear at the settlement hearing and state any objections to the proposed settlement. (Subd (f) amended effective January 1, 2007.)
(g) Conduct of final approval hearing Before final approval, the court must conduct an inquiry into the fairness of the proposed settlement.
(h) Judgment and retention of jurisdiction to enforce If the court approves the settlement agreement after the final approval hearing, the court must make and enter judgment. The judgment must include a provision for the retention of the court’s jurisdiction over the parties to enforce the terms of the judgment. The court may not enter an order dismissing the action at the same time as, or after, entry of judgment. (Subd (h) amended effective January 1, 2009.)
Plain-English Summary
A class action cannot be settled the way an individual lawsuit can. Rule 3.769 requires court approval, after a hearing, before any settlement takes effect — whether it resolves the entire case, a single cause of action, or the claims of just one party. Because attorney’s fees in a class settlement come out of a fund that belongs to the class, not just the negotiating parties, the rule requires full disclosure of any fee agreement, even an implied one, in the application for approval.
Getting to that approval runs through several steps. Any settling party can move for preliminary approval, filing the settlement agreement and a proposed class notice along with the motion and lodging a proposed order. The court may certify a provisional settlement class after a preliminary hearing, and if it grants preliminary approval, its order has to set the time, date, and place for the final approval hearing and spell out what notice the class will receive. That notice must explain the settlement and tell class members how to object or show up at the final hearing.
Before final approval, the court has to dig into whether the settlement is fair. If it approves the deal, it enters judgment — and that judgment has to keep the court’s jurisdiction alive to enforce the settlement’s terms. The rule pointedly bars the court from dismissing the action at the same time as, or after, entering judgment, so the case cannot slip out from under the court’s power to make the parties live up to the deal.
Frequently Asked Questions
Can the parties settle a class action without asking the court to approve it?
No. Rule 3.769 requires court approval after a hearing for a settlement of the entire class action, a cause of action within it, or a settlement as to a particular party.
Does class counsel have to disclose their fee arrangement?
Yes. Any agreement, express or implied, about the payment or application for attorney’s fees must be set out in full in the application for approval of the settlement.
Is there a preliminary step before the court gives final approval to a class settlement?
Yes. A party moves for preliminary approval with the settlement agreement and proposed class notice, the court may grant that approval and set a final approval hearing, and class members are notified before that final hearing.
What does the court examine before giving final approval to a settlement?
The court must conduct an inquiry into the fairness of the proposed settlement before granting final approval.
Why can’t the court just dismiss the case once it approves a class settlement?
Rule 3.769 bars the court from entering a dismissal at the same time as, or after, entering judgment, so the judgment retains the court’s jurisdiction to enforce the settlement’s terms.
Amendment History
Rule 3.769 amended effective January 1, 2009; adopted as rule 1859 effective January 1, 2002; previously amended and renumbered effective January 1, 2007.
Source & verification. Rule text is reproduced verbatim from
the Judicial Council of California. Adopted by the Judicial Council of California.
Last verified July 29, 2026.
· Official source
Also known as: approving a class action settlement in californiapreliminary approval of class action settlementattorney fee disclosure class action settlementfairness hearing class action