PUBLIC LAW 109–2—FEB. 18, 2005

CLASS ACTION FAIRNESS ACT OF 2005

119 STAT. 4 PUBLIC LAW 109–2—FEB. 18, 2005

Public Law 109–2

109th Congress

An Act

To amend the procedures that apply to consideration of interstate class actions

to assure fairer outcomes for class members and defendants, and for other purposes.

Be it enacted by the Senate and House of Representatives of

the United States of America in Congress assembled,

SECTION 1. SHORT TITLE; REFERENCE; TABLE OF CONTENTS.

(a) SHORT TITLE.—This Act may be cited as the ‘‘Class Action

Fairness Act of 2005’’.

(b) REFERENCE.—Whenever in this Act reference is made to

an amendment to, or repeal of, a section or other provision, the

reference shall be considered to be made to a section or other

provision of title 28, United States Code.

(c) TABLE OF CONTENTS.—The table of contents for this Act

is as follows:

Sec. 1. Short title; reference; table of contents.

Sec. 2. Findings and purposes.

Sec. 3. Consumer class action bill of rights and improved procedures for interstate

class actions.

Sec. 4. Federal district court jurisdiction for interstate class actions.

Sec. 5. Removal of interstate class actions to Federal district court.

Sec. 6. Report on class action settlements.

Sec. 7. Enactment of Judicial Conference recommendations.

Sec. 8. Rulemaking authority of Supreme Court and Judicial Conference.

Sec. 9. Effective date.

SEC. 2. FINDINGS AND PURPOSES.

(a) FINDINGS.—Congress finds the following:

(1) Class action lawsuits are an important and valuable

part of the legal system when they permit the fair and efficient

resolution of legitimate claims of numerous parties by allowing

the claims to be aggregated into a single action against a

defendant that has allegedly caused harm.

(2) Over the past decade, there have been abuses of the

class action device that have—

(A) harmed class members with legitimate claims and

defendants that have acted responsibly;

(B) adversely affected interstate commerce; and

(C) undermined public respect for our judicial system.

(3) Class members often receive little or no benefit from

class actions, and are sometimes harmed, such as where—

(A) counsel are awarded large fees, while leaving class

members with coupons or other awards of little or no

value;

(B) unjustified awards are made to certain plaintiffs

at the expense of other class members; and

28 USC 1711

note.

28 USC 1 note.

Class Action

Fairness Act of

2005.

Feb. 18, 2005

[S. 5]

PUBLIC LAW 109–2—FEB. 18, 2005 119 STAT. 5

(C) confusing notices are published that prevent class

members from being able to fully understand and effectively exercise their rights.

(4) Abuses in class actions undermine the national judicial

system, the free flow of interstate commerce, and the concept

of diversity jurisdiction as intended by the framers of the United

States Constitution, in that State and local courts are—

(A) keeping cases of national importance out of Federal

court;

(B) sometimes acting in ways that demonstrate bias

against out-of-State defendants; and

(C) making judgments that impose their view of the

law on other States and bind the rights of the residents

of those States.

(b) PURPOSES.—The purposes of this Act are to—

(1) assure fair and prompt recoveries for class members

with legitimate claims;

(2) restore the intent of the framers of the United States

Constitution by providing for Federal court consideration of

interstate cases of national importance under diversity jurisdiction; and

(3) benefit society by encouraging innovation and lowering

consumer prices.

SEC. 3. CONSUMER CLASS ACTION BILL OF RIGHTS AND IMPROVED

PROCEDURES FOR INTERSTATE CLASS ACTIONS.

(a) IN GENERAL.—Part V is amended by inserting after chapter

113 the following:

‘‘CHAPTER 114—CLASS ACTIONS

‘‘Sec.

‘‘1711. Definitions.

‘‘1712. Coupon settlements.

‘‘1713. Protection against loss by class members.

‘‘1714. Protection against discrimination based on geographic location.

‘‘1715. Notifications to appropriate Federal and State officials.

‘‘§ 1711. Definitions

‘‘In this chapter:

‘‘(1) CLASS.—The term ‘class’ means all of the class members in a class action.

‘‘(2) CLASS ACTION.—The term ‘class action’ means any

civil action filed in a district court of the United States under

rule 23 of the Federal Rules of Civil Procedure or any civil

action that is removed to a district court of the United States

that was originally filed under a State statute or rule of judicial

procedure authorizing an action to be brought by 1 or more

representatives as a class action.

‘‘(3) CLASS COUNSEL.—The term ‘class counsel’ means the

persons who serve as the attorneys for the class members

in a proposed or certified class action.

‘‘(4) CLASS MEMBERS.—The term ‘class members’ means

the persons (named or unnamed) who fall within the definition

of the proposed or certified class in a class action.

‘‘(5) PLAINTIFF CLASS ACTION.—The term ‘plaintiff class

action’ means a class action in which class members are plaintiffs.

119 STAT. 6 PUBLIC LAW 109–2—FEB. 18, 2005

‘‘(6) PROPOSED SETTLEMENT.—The term ‘proposed settlement’ means an agreement regarding a class action that is

subject to court approval and that, if approved, would be

binding on some or all class members.

‘‘§ 1712. Coupon settlements

‘‘(a) CONTINGENT FEES IN COUPON SETTLEMENTS.—If a proposed

settlement in a class action provides for a recovery of coupons

to a class member, the portion of any attorney’s fee award to

class counsel that is attributable to the award of the coupons

shall be based on the value to class members of the coupons that

are redeemed.

‘‘(b) OTHER ATTORNEY’S FEE AWARDS IN COUPON SETTLEMENTS.—

‘‘(1) IN GENERAL.—If a proposed settlement in a class action

provides for a recovery of coupons to class members, and a

portion of the recovery of the coupons is not used to determine

the attorney’s fee to be paid to class counsel, any attorney’s

fee award shall be based upon the amount of time class counsel

reasonably expended working on the action.

‘‘(2) COURT APPROVAL.—Any attorney’s fee under this subsection shall be subject to approval by the court and shall

include an appropriate attorney’s fee, if any, for obtaining equitable relief, including an injunction, if applicable. Nothing in

this subsection shall be construed to prohibit application of

a lodestar with a multiplier method of determining attorney’s

fees.

‘‘(c) ATTORNEY’S FEE AWARDS CALCULATED ON A MIXED BASIS

IN COUPON SETTLEMENTS.—If a proposed settlement in a class

action provides for an award of coupons to class members and

also provides for equitable relief, including injunctive relief—

‘‘(1) that portion of the attorney’s fee to be paid to class

counsel that is based upon a portion of the recovery of the

coupons shall be calculated in accordance with subsection (a);

and

‘‘(2) that portion of the attorney’s fee to be paid to class

counsel that is not based upon a portion of the recovery of

the coupons shall be calculated in accordance with subsection

(b).

‘‘(d) SETTLEMENT VALUATION EXPERTISE.—In a class action

involving the awarding of coupons, the court may, in its discretion

upon the motion of a party, receive expert testimony from a witness

qualified to provide information on the actual value to the class

members of the coupons that are redeemed.

‘‘(e) JUDICIAL SCRUTINY OF COUPON SETTLEMENTS.—In a proposed settlement under which class members would be awarded

coupons, the court may approve the proposed settlement only after

a hearing to determine whether, and making a written finding

that, the settlement is fair, reasonable, and adequate for class

members. The court, in its discretion, may also require that a

proposed settlement agreement provide for the distribution of a

portion of the value of unclaimed coupons to 1 or more charitable

or governmental organizations, as agreed to by the parties. The

distribution and redemption of any proceeds under this subsection

shall not be used to calculate attorneys’ fees under this section.

PUBLIC LAW 109–2—FEB. 18, 2005 119 STAT. 7

‘‘§ 1713. Protection against loss by class members

‘‘The court may approve a proposed settlement under which

any class member is obligated to pay sums to class counsel that

would result in a net loss to the class member only if the court

makes a written finding that nonmonetary benefits to the class

member substantially outweigh the monetary loss.

‘‘§ 1714. Protection against discrimination based on

geographic location

‘‘The court may not approve a proposed settlement that provides

for the payment of greater sums to some class members than

to others solely on the basis that the class members to whom

the greater sums are to be paid are located in closer geographic

proximity to the court.

‘‘§ 1715. Notifications to appropriate Federal and State officials

‘‘(a) DEFINITIONS.—

‘‘(1) APPROPRIATE FEDERAL OFFICIAL.—In this section, the

term ‘appropriate Federal official’ means—

‘‘(A) the Attorney General of the United States; or

‘‘(B) in any case in which the defendant is a Federal

depository institution, a State depository institution, a

depository institution holding company, a foreign bank,

or a nondepository institution subsidiary of the foregoing

(as such terms are defined in section 3 of the Federal

Deposit Insurance Act (12 U.S.C. 1813)), the person who

has the primary Federal regulatory or supervisory responsibility with respect to the defendant, if some or all of the

matters alleged in the class action are subject to regulation

or supervision by that person.

‘‘(2) APPROPRIATE STATE OFFICIAL.—In this section, the term

‘appropriate State official’ means the person in the State who

has the primary regulatory or supervisory responsibility with

respect to the defendant, or who licenses or otherwise authorizes the defendant to conduct business in the State, if some

or all of the matters alleged in the class action are subject

to regulation by that person. If there is no primary regulator,

supervisor, or licensing authority, or the matters alleged in

the class action are not subject to regulation or supervision

by that person, then the appropriate State official shall be

the State attorney general.

‘‘(b) IN GENERAL.—Not later than 10 days after a proposed

settlement of a class action is filed in court, each defendant that

is participating in the proposed settlement shall serve upon the

appropriate State official of each State in which a class member

resides and the appropriate Federal official, a notice of the proposed

settlement consisting of—

‘‘(1) a copy of the complaint and any materials filed with

the complaint and any amended complaints (except such materials shall not be required to be served if such materials are

made electronically available through the Internet and such

service includes notice of how to electronically access such

material);

‘‘(2) notice of any scheduled judicial hearing in the class

action;

Deadline.

119 STAT. 8 PUBLIC LAW 109–2—FEB. 18, 2005

‘‘(3) any proposed or final notification to class members

of—

‘‘(A)(i) the members’ rights to request exclusion from

the class action; or

‘‘(ii) if no right to request exclusion exists, a statement

that no such right exists; and

‘‘(B) a proposed settlement of a class action;

‘‘(4) any proposed or final class action settlement;

‘‘(5) any settlement or other agreement contemporaneously

made between class counsel and counsel for the defendants;

‘‘(6) any final judgment or notice of dismissal;

‘‘(7)(A) if feasible, the names of class members who reside

in each State and the estimated proportionate share of the

claims of such members to the entire settlement to that State’s

appropriate State official; or

‘‘(B) if the provision of information under subparagraph

(A) is not feasible, a reasonable estimate of the number of

class members residing in each State and the estimated proportionate share of the claims of such members to the entire

settlement; and

‘‘(8) any written judicial opinion relating to the materials

described under subparagraphs (3) through (6).

‘‘(c) DEPOSITORY INSTITUTIONS NOTIFICATION.—

‘‘(1) FEDERAL AND OTHER DEPOSITORY INSTITUTIONS.—In

any case in which the defendant is a Federal depository institution, a depository institution holding company, a foreign bank,

or a non-depository institution subsidiary of the foregoing, the

notice requirements of this section are satisfied by serving

the notice required under subsection (b) upon the person who

has the primary Federal regulatory or supervisory responsibility with respect to the defendant, if some or all of the

matters alleged in the class action are subject to regulation

or supervision by that person.

‘‘(2) STATE DEPOSITORY INSTITUTIONS.—In any case in which

the defendant is a State depository institution (as that term

is defined in section 3 of the Federal Deposit Insurance Act

(12 U.S.C. 1813)), the notice requirements of this section are

satisfied by serving the notice required under subsection (b)

upon the State bank supervisor (as that term is defined in

section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813))

of the State in which the defendant is incorporated or chartered,

if some or all of the matters alleged in the class action are

subject to regulation or supervision by that person, and upon

the appropriate Federal official.

‘‘(d) FINAL APPROVAL.—An order giving final approval of a

proposed settlement may not be issued earlier than 90 days after

the later of the dates on which the appropriate Federal official

and the appropriate State official are served with the notice required

under subsection (b).

‘‘(e) NONCOMPLIANCE IF NOTICE NOT PROVIDED.—

‘‘(1) IN GENERAL.—A class member may refuse to comply

with and may choose not to be bound by a settlement agreement

or consent decree in a class action if the class member demonstrates that the notice required under subsection (b) has

not been provided.

‘‘(2) LIMITATION.—A class member may not refuse to comply

with or to be bound by a settlement agreement or consent

PUBLIC LAW 109–2—FEB. 18, 2005 119 STAT. 9

decree under paragraph (1) if the notice required under subsection (b) was directed to the appropriate Federal official and

to either the State attorney general or the person that has

primary regulatory, supervisory, or licensing authority over

the defendant.

‘‘(3) APPLICATION OF RIGHTS.—The rights created by this

subsection shall apply only to class members or any person

acting on a class member’s behalf, and shall not be construed

to limit any other rights affecting a class member’s participation

in the settlement.

‘‘(f) RULE OF CONSTRUCTION.—Nothing in this section shall

be construed to expand the authority of, or impose any obligations,

duties, or responsibilities upon, Federal or State officials.’’.

(b) TECHNICAL AND CONFORMING AMENDMENT.—The table of

chapters for part V is amended by inserting after the item relating

to chapter 113 the following:

‘‘114. Class Actions .............................................................................................. 1711’’.

SEC. 4. FEDERAL DISTRICT COURT JURISDICTION FOR INTERSTATE

CLASS ACTIONS.

(a) APPLICATION OF FEDERAL DIVERSITY JURISDICTION.—Section

1332 is amended—

(1) by redesignating subsection (d) as subsection (e); and

(2) by inserting after subsection (c) the following:

‘‘(d)(1) In this subsection—

‘‘(A) the term ‘class’ means all of the class members in

a class action;

‘‘(B) the term ‘class action’ means any civil action filed

under rule 23 of the Federal Rules of Civil Procedure or similar

State statute or rule of judicial procedure authorizing an action

to be brought by 1 or more representative persons as a class

action;

‘‘(C) the term ‘class certification order’ means an order

issued by a court approving the treatment of some or all aspects

of a civil action as a class action; and

‘‘(D) the term ‘class members’ means the persons (named

or unnamed) who fall within the definition of the proposed

or certified class in a class action.

‘‘(2) The district courts shall have original jurisdiction of any

civil action in which the matter in controversy exceeds the sum

or value of $5,000,000, exclusive of interest and costs, and is a

class action in which—

‘‘(A) any member of a class of plaintiffs is a citizen of

a State different from any defendant;

‘‘(B) any member of a class of plaintiffs is a foreign state

or a citizen or subject of a foreign state and any defendant

is a citizen of a State; or

‘‘(C) any member of a class of plaintiffs is a citizen of

a State and any defendant is a foreign state or a citizen or

subject of a foreign state.

‘‘(3) A district court may, in the interests of justice and looking

at the totality of the circumstances, decline to exercise jurisdiction

under paragraph (2) over a class action in which greater than

one-third but less than two-thirds of the members of all proposed

plaintiff classes in the aggregate and the primary defendants are

citizens of the State in which the action was originally filed based

on consideration of—

119 STAT. 10 PUBLIC LAW 109–2—FEB. 18, 2005

‘‘(A) whether the claims asserted involve matters of

national or interstate interest;

‘‘(B) whether the claims asserted will be governed by laws

of the State in which the action was originally filed or by

the laws of other States;

‘‘(C) whether the class action has been pleaded in a manner

that seeks to avoid Federal jurisdiction;

‘‘(D) whether the action was brought in a forum with a

distinct nexus with the class members, the alleged harm, or

the defendants;

‘‘(E) whether the number of citizens of the State in which

the action was originally filed in all proposed plaintiff classes

in the aggregate is substantially larger than the number of

citizens from any other State, and the citizenship of the other

members of the proposed class is dispersed among a substantial

number of States; and

‘‘(F) whether, during the 3-year period preceding the filing

of that class action, 1 or more other class actions asserting

the same or similar claims on behalf of the same or other

persons have been filed.

‘‘(4) A district court shall decline to exercise jurisdiction under

paragraph (2)—

‘‘(A)(i) over a class action in which—

‘‘(I) greater than two-thirds of the members of all proposed plaintiff classes in the aggregate are citizens of the

State in which the action was originally filed;

‘‘(II) at least 1 defendant is a defendant—

‘‘(aa) from whom significant relief is sought by

members of the plaintiff class;

‘‘(bb) whose alleged conduct forms a significant

basis for the claims asserted by the proposed plaintiff

class; and

‘‘(cc) who is a citizen of the State in which the

action was originally filed; and

‘‘(III) principal injuries resulting from the alleged conduct or any related conduct of each defendant were incurred

in the State in which the action was originally filed; and

‘‘(ii) during the 3-year period preceding the filing of that

class action, no other class action has been filed asserting

the same or similar factual allegations against any of the

defendants on behalf of the same or other persons; or

‘‘(B) two-thirds or more of the members of all proposed

plaintiff classes in the aggregate, and the primary defendants,

are citizens of the State in which the action was originally

filed.

‘‘(5) Paragraphs (2) through (4) shall not apply to any class

action in which—

‘‘(A) the primary defendants are States, State officials,

or other governmental entities against whom the district court

may be foreclosed from ordering relief; or

‘‘(B) the number of members of all proposed plaintiff classes

in the aggregate is less than 100.

‘‘(6) In any class action, the claims of the individual class

members shall be aggregated to determine whether the matter

in controversy exceeds the sum or value of $5,000,000, exclusive

of interest and costs.

PUBLIC LAW 109–2—FEB. 18, 2005 119 STAT. 11

‘‘(7) Citizenship of the members of the proposed plaintiff classes

shall be determined for purposes of paragraphs (2) through (6)

as of the date of filing of the complaint or amended complaint,

or, if the case stated by the initial pleading is not subject to

Federal jurisdiction, as of the date of service by plaintiffs of an

amended pleading, motion, or other paper, indicating the existence

of Federal jurisdiction.

‘‘(8) This subsection shall apply to any class action before or

after the entry of a class certification order by the court with

respect to that action.

‘‘(9) Paragraph (2) shall not apply to any class action that

solely involves a claim—

‘‘(A) concerning a covered security as defined under 16(f)(3)

of the Securities Act of 1933 (15 U.S.C. 78p(f)(3)) and section

28(f)(5)(E) of the Securities Exchange Act of 1934 (15 U.S.C.

78bb(f)(5)(E));

‘‘(B) that relates to the internal affairs or governance of

a corporation or other form of business enterprise and that

arises under or by virtue of the laws of the State in which

such corporation or business enterprise is incorporated or organized; or

‘‘(C) that relates to the rights, duties (including fiduciary

duties), and obligations relating to or created by or pursuant

to any security (as defined under section 2(a)(1) of the Securities

Act of 1933 (15 U.S.C. 77b(a)(1)) and the regulations issued

thereunder).

‘‘(10) For purposes of this subsection and section 1453, an

unincorporated association shall be deemed to be a citizen of the

State where it has its principal place of business and the State

under whose laws it is organized.

‘‘(11)(A) For purposes of this subsection and section 1453, a

mass action shall be deemed to be a class action removable under

paragraphs (2) through (10) if it otherwise meets the provisions

of those paragraphs.

‘‘(B)(i) As used in subparagraph (A), the term ‘mass action’

means any civil action (except a civil action within the scope of

section 1711(2)) in which monetary relief claims of 100 or more

persons are proposed to be tried jointly on the ground that the

plaintiffs’ claims involve common questions of law or fact, except

that jurisdiction shall exist only over those plaintiffs whose claims

in a mass action satisfy the jurisdictional amount requirements

under subsection (a).

‘‘(ii) As used in subparagraph (A), the term ‘mass action’ shall

not include any civil action in which—

‘‘(I) all of the claims in the action arise from an event

or occurrence in the State in which the action was filed, and

that allegedly resulted in injuries in that State or in States

contiguous to that State;

‘‘(II) the claims are joined upon motion of a defendant;

‘‘(III) all of the claims in the action are asserted on behalf

of the general public (and not on behalf of individual claimants

or members of a purported class) pursuant to a State statute

specifically authorizing such action; or

‘‘(IV) the claims have been consolidated or coordinated

solely for pretrial proceedings.

‘‘(C)(i) Any action(s) removed to Federal court pursuant to this

subsection shall not thereafter be transferred to any other court

119 STAT. 12 PUBLIC LAW 109–2—FEB. 18, 2005

pursuant to section 1407, or the rules promulgated thereunder,

unless a majority of the plaintiffs in the action request transfer

pursuant to section 1407.

‘‘(ii) This subparagraph will not apply—

‘‘(I) to cases certified pursuant to rule 23 of the Federal

Rules of Civil Procedure; or

‘‘(II) if plaintiffs propose that the action proceed as a class

action pursuant to rule 23 of the Federal Rules of Civil Procedure.

‘‘(D) The limitations periods on any claims asserted in a mass

action that is removed to Federal court pursuant to this subsection

shall be deemed tolled during the period that the action is pending

in Federal court.’’.

(b) CONFORMING AMENDMENTS.—

(1) Section 1335(a)(1) is amended by inserting ‘‘subsection

(a) or (d) of’’ before ‘‘section 1332’’.

(2) Section 1603(b)(3) is amended by striking ‘‘(d)’’ and

inserting ‘‘(e)’’.

SEC. 5. REMOVAL OF INTERSTATE CLASS ACTIONS TO FEDERAL DISTRICT COURT.

(a) IN GENERAL.—Chapter 89 is amended by adding after section 1452 the following:

‘‘§ 1453. Removal of class actions

‘‘(a) DEFINITIONS.—In this section, the terms ‘class’, ‘class

action’, ‘class certification order’, and ‘class member’ shall have

the meanings given such terms under section 1332(d)(1).

‘‘(b) IN GENERAL.—A class action may be removed to a district

court of the United States in accordance with section 1446 (except

that the 1-year limitation under section 1446(b) shall not apply),

without regard to whether any defendant is a citizen of the State

in which the action is brought, except that such action may be

removed by any defendant without the consent of all defendants.

‘‘(c) REVIEW OF REMAND ORDERS.—

‘‘(1) IN GENERAL.—Section 1447 shall apply to any removal

of a case under this section, except that notwithstanding section

1447(d), a court of appeals may accept an appeal from an

order of a district court granting or denying a motion to remand

a class action to the State court from which it was removed

if application is made to the court of appeals not less than

7 days after entry of the order.

‘‘(2) TIME PERIOD FOR JUDGMENT.—If the court of appeals

accepts an appeal under paragraph (1), the court shall complete

all action on such appeal, including rendering judgment, not

later than 60 days after the date on which such appeal was

filed, unless an extension is granted under paragraph (3).

‘‘(3) EXTENSION OF TIME PERIOD.—The court of appeals

may grant an extension of the 60-day period described in paragraph (2) if—

‘‘(A) all parties to the proceeding agree to such extension, for any period of time; or

‘‘(B) such extension is for good cause shown and in

the interests of justice, for a period not to exceed 10 days.

‘‘(4) DENIAL OF APPEAL.—If a final judgment on the appeal

under paragraph (1) is not issued before the end of the period

Applicability.

PUBLIC LAW 109–2—FEB. 18, 2005 119 STAT. 13

described in paragraph (2), including any extension under paragraph (3), the appeal shall be denied.

‘‘(d) EXCEPTION.—This section shall not apply to any class action

that solely involves—

‘‘(1) a claim concerning a covered security as defined under

section 16(f)(3) of the Securities Act of 1933 (15 U.S.C. 78p(f)(3))

and section 28(f)(5)(E) of the Securities Exchange Act of 1934

(15 U.S.C. 78bb(f)(5)(E));

‘‘(2) a claim that relates to the internal affairs or governance of a corporation or other form of business enterprise

and arises under or by virtue of the laws of the State in

which such corporation or business enterprise is incorporated

or organized; or

‘‘(3) a claim that relates to the rights, duties (including

fiduciary duties), and obligations relating to or created by or

pursuant to any security (as defined under section 2(a)(1) of

the Securities Act of 1933 (15 U.S.C. 77b(a)(1)) and the regulations issued thereunder).’’.

(b) TECHNICAL AND CONFORMING AMENDMENTS.—The table of

sections for chapter 89 is amended by adding after the item relating

to section 1452 the following:

‘‘1453. Removal of class actions.’’.

SEC. 6. REPORT ON CLASS ACTION SETTLEMENTS.

(a) IN GENERAL.—Not later than 12 months after the date

of enactment of this Act, the Judicial Conference of the United

States, with the assistance of the Director of the Federal Judicial

Center and the Director of the Administrative Office of the United

States Courts, shall prepare and transmit to the Committees on

the Judiciary of the Senate and the House of Representatives a

report on class action settlements.

(b) CONTENT.—The report under subsection (a) shall contain—

(1) recommendations on the best practices that courts can

use to ensure that proposed class action settlements are fair

to the class members that the settlements are supposed to

benefit;

(2) recommendations on the best practices that courts can

use to ensure that—

(A) the fees and expenses awarded to counsel in connection with a class action settlement appropriately reflect

the extent to which counsel succeeded in obtaining full

redress for the injuries alleged and the time, expense,

and risk that counsel devoted to the litigation; and

(B) the class members on whose behalf the settlement

is proposed are the primary beneficiaries of the settlement;

and

(3) the actions that the Judicial Conference of the United

States has taken and intends to take toward having the Federal

judiciary implement any or all of the recommendations contained in the report.

(c) AUTHORITY OF FEDERAL COURTS.—Nothing in this section

shall be construed to alter the authority of the Federal courts

to supervise attorneys’ fees.

SEC. 7. ENACTMENT OF JUDICIAL CONFERENCE RECOMMENDATIONS.

Notwithstanding any other provision of law, the amendments

to rule 23 of the Federal Rules of Civil Procedure, which are

28 USC 2074

note.

119 STAT. 14 PUBLIC LAW 109–2—FEB. 18, 2005

LEGISLATIVE HISTORY—S. 5:

CONGRESSIONAL RECORD, Vol. 151 (2005):

Feb. 7–10, considered and passed Senate.

Feb. 17, considered and passed House.

WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 41 (2005):

Feb. 18, Presidential remarks.

Æ

set forth in the order entered by the Supreme Court of the United

States on March 27, 2003, shall take effect on the date of enactment

of this Act or on December 1, 2003 (as specified in that order),

whichever occurs first.

SEC. 8. RULEMAKING AUTHORITY OF SUPREME COURT AND JUDICIAL

CONFERENCE.

Nothing in this Act shall restrict in any way the authority

of the Judicial Conference and the Supreme Court to propose and

prescribe general rules of practice and procedure under chapter

131 of title 28, United States Code.

SEC. 9. EFFECTIVE DATE.

The amendments made by this Act shall apply to any civil

action commenced on or after the date of enactment of this Act.

Approved February 18, 2005.

28 USC 1332

note.

28 USC 2071

note.