Opinion ID: 2192523
Heading Depth: 2
Heading Rank: 7

Heading: Reconsideration of Class Certification

Text: Finally, we address the Fraleys' contention that the trial court erroneously applied the finality principles set forth in Ark. R. Civ. P. 59 and 60 to reconsideration of its class-certification decision. We agree. Rule 23 of the Arkansas Rules of Civil Procedure specifically states that [a]n order under this section may be conditional and it may be altered or amended before the decision on the merits. Ark. R. Civ. P. 23; See also NEWBERG ON CLASS ACTIONS, supra § 7.47. Class rulings are often reconsidered, and subsequently affirmed, altered, modified, or withdrawn. Id. [A]lthough the court's initial decision under Rule 23(c)(1) that an action is maintainable on a class basis in fact may be the final resolution of the question, it is not irreversible and may be altered or amended at a later date. This power to change the class certification decision has encouraged many courts to be quite liberal in certifying a class when that decision is made at an early stage, noting that the action always can be decertified or the class description altered if later events suggest that it is appropriate to do so. WRIGHT, MILLER & KANE: FEDERAL PRACTICE & PROCEDURE 2D § 1785 at pp. 128-31 (2d Ed.1986) (citations omitted). The ability of a court to reconsider its initial class rulings ... is a vital ingredient in the flexibility of courts to realize the full potential benefits flowing from the judicious use of the class device. NEWBERG ON CLASS ACTIONS, supra § 7.47 at pp. 7-146. Class-action certification is necessarily an ongoing process in light of Rule 23's opt-out and decertification provisions. For these reasons, we hold that the finality principles of Rules 59 and 60 of the Arkansas Rules of Civil Procedure do not apply to class rulings under Ark. R. Civ. P. 23 before there is a decision on the merits. Thus, the trial court's reservation of the right to reconsider the certification issue was proper. However, it erroneously applied the finality principles of Ark. R. Civ. P. 59 and 60 to reconsideration of its class-certification decision. Reversed and remanded.