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Rule 23.05 – Settlement, Voluntary Dismissal, or Compromise

May 13, 2021 | Civil Procedure, Minnesota

(a)Court Approval.

(1) A settlement, voluntary dismissal, or compromise of the claims, issues, or defenses of a certified class is effective only if approved by the court.
(2) The court must direct notice in a reasonable manner to all class members who would be bound by a proposed settlement, voluntary dismissal, or compromise.
(3) The court may approve a settlement, voluntary dismissal, or compromise that would bind class members only after a hearing and on finding that the settlement, voluntary dismissal, or compromise is fair, reasonable, and adequate.
(b)Disclosure Required. The parties seeking approval of a settlement, voluntary dismissal, or compromise under Rule 23.05(a) must file a statement identifying any agreement made in connection with the proposed settlement, voluntary dismissal, or compromise.
(c)Additional Opt-Out Period. In an action previously certified as a class action under Rule 23.02(c), the court may refuse to approve a settlement unless it affords a new opportunity to request exclusion to individual class members who had an earlier opportunity to request exclusion but did not do so.
(d)Objection to Settlement.

(1) Any class member may object to a proposed settlement, voluntary dismissal, or compromise that requires court approval under Rule 23.05(a)(1).
(2) An objection made under Rule 23.05(d)(1) may be withdrawn only with the court’s approval.
(e) Distribution of Residual Funds. If Any.

In the event mere are residual funds that remain after payment of all approved class member claims (including any supplemental distributions to the class”), expenses, litigation costs, attorney’s fees, and other court-approved disbursements, the court shall direct notice regarding the distribution of these funds. This notice shall be provided to anv potential recipient of residual funds identified bv the parties or the court and to the Legal Services Advisory Committee for the purpose of informing qualified legal services programs within the meaning of Minnesota Statutes ยง 480.24. subdivision 3.

In approving the distribution or other disposition of residual funds, the district court shall consider all relevant factors, including the recommendations of the parties, the nexus between the nature, purpose, and objectives of the class action and the interests of the class members, and the interests of potential recipients of the residual funds.

Minn. R. Civ. P. 23.05

Amended March 13, 2018, effective July 1, 2018; further amended June 22, 2018, effective July 1, 2018.