Rule 1.271.Dismissal or compromise

A class action cannot be dropped or settled the way an individual lawsuit can, because the outcome affects people who may not be watching the case closely. Rule 1.271 requires court approval, after a hearing, before a class action can be dismissed voluntarily, dismissed involuntarily without a decision on the merits, or compromised -- unless certification has already been refused under rule 1.262, in which case the ordinary rules for ending a lawsuit apply. If the class has been certified, notice of the hearing on the proposed dismissal or compromise goes to every class member, in whatever manner the court directs; if certification hasn't been decided yet, the court has discretion whether to order notice at all.

When notice is required, it has to do more than announce a hearing date. Rule 1.271(3) requires a full disclosure of the reasons for the proposed dismissal or compromise, including any payments made or promised in connection with it, the anticipated effect on class members, any side agreements, an evaluation of the alternatives the representative parties considered, and an explanation of the circumstances behind the proposal. At the hearing, the court has real choices: it can approve dismissal with or without prejudice or approve the compromise, permit dismissal without prejudice for an uncertified class, deny the dismissal outright, disapprove the compromise, or take whatever other action protects the class and serves justice. The cost of the notice generally falls on the party seeking dismissal, or is allocated by agreement for a compromise, unless the court decides otherwise.