Opinion ID: 577164
Heading Depth: 2
Heading Rank: 1

Heading: Standards for Approval of Class Action Settlements

Text: 21 Fed.R.Civ.P. 23(e) provides that [a] class action shall not be dismissed or compromised without the approval of the court.... Although Rule 23(e) is silent respecting the standard by which a proposed settlement is to be evaluated, the universally applied standard is whether the settlement is fundamentally fair, adequate and reasonable. Officers for Justice v. Civil Serv. Comm'n, 688 F.2d 615, 625 (9th Cir.1982), cert. denied, 459 U.S. 1217, 103 S.Ct. 1219, 75 L.Ed.2d 456 (1983). See generally Marc Galanter, The Federal Rules and the Quality of Settlements, 137 U.Pa.L.Rev. 2231 (1989). 22 Our task on appeal is a very limited one. The initial decision to approve or reject a settlement proposal is committed to the sound discretion of the trial judge. Officers for Justice, 688 F.2d at 625. We are not permitted to substitute our notions of fairness for those of the district judge and the parties to the agreement. Id. at 626. This is especially true in light of the strong judicial policy that favors settlements, particularly where complex class action litigation is concerned. See, e.g., id. at 625 ([V]oluntary conciliation and settlement are the preferred means of dispute resolution.); In re Corrugated Container Antitrust Litig., 643 F.2d 195, 207 (5th Cir.1981) (noting the strong judicial policy favoring settlement of disputes). Accordingly, we will reverse only upon a strong showing that the district court's decision was a clear abuse of discretion. Officers for Justice, 688 F.2d at 626.