Class Action Fairness Act of 2005
PL 109-2 (S.5), enacted 02/18/2005

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]
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119 STAT. 5
PUBLIC LAW 109–2—FEB. 18, 2005
(C) confusing notices are published that prevent class
members from being able to fully understand and effec-
tively 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 jurisdic-
tion; 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 mem-
bers 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 plain-
tiffs.
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PUBLIC LAW 109–2—FEB. 18, 2005
‘‘(6) PROPOSED
SETTLEMENT.—The term ‘proposed settle-
ment’ 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 SETTLE-
MENTS.—
‘‘(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 sub-
section shall be subject to approval by the court and shall
include an appropriate attorney’s fee, if any, for obtaining equi-
table 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 pro-
posed 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.
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119 STAT. 7
PUBLIC LAW 109–2—FEB. 18, 2005
‘‘§ 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 offi-
cials
‘‘(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 responsi-
bility 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 author-
izes 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 mate-
rials 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.
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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 propor-
tionate 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 institu-
tion, 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 responsi-
bility 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 dem-
onstrates 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
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119 STAT. 9
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decree under paragraph (1) if the notice required under sub-
section (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—
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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 pro-
posed 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 con-
duct 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.
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PUBLIC LAW 109–2—FEB. 18, 2005
‘‘(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 orga-
nized; 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
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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 Proce-
dure.
‘‘(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 DIS-
TRICT COURT.
(a) IN GENERAL.—Chapter 89 is amended by adding after sec-
tion 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 para-
graph (2) if—
‘‘(A) all parties to the proceeding agree to such exten-
sion, 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.
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described in paragraph (2), including any extension under para-
graph (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 govern-
ance 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 regula-
tions 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 connec-
tion 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 con-
tained 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.
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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.
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.
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