Rule 23.Class actions.

Rule 23(a) allows a class action whenever the people making up a class are so numerous that bringing them all before the court would be impractical: one or more of them, chosen so as to ensure adequate representation of the whole group, may sue or be sued on behalf of everyone. North Carolina’s courts have filled in the practical requirements for certifying a class beyond this bare text — the class must be numerous enough, share a common issue that predominates over individual differences, be adequately represented both inside and outside the court’s jurisdiction, and receive adequate notice of the proceeding.

Rule 23(b) adds a heightened formality for a secondary or derivative action — where one or more shareholders or members sue on behalf of a corporation or unincorporated association because the entity itself refuses to enforce a right it could properly assert: the complaint must be verified by oath.

Rule 23(c) requires court approval before a class action can be dismissed or compromised, and requires notice of any proposed dismissal or compromise to be given to every class member in whatever manner the judge directs — protecting absent class members from a deal struck without their knowledge. Rule 23(d) layers on additional statutory requirements for a class action seeking a refund of a state tax paid under an allegedly unconstitutional statute.