What Is Rule 23?
Rule 23 is the federal rule that decides when a lawsuit can be a class action and how class settlements must be approved.
Rule 23 is the part of the Federal Rules of Civil Procedure that governs class actions in US federal courts. It sets the requirements for certifying a class, the rules for notice and opting out, and the process courts follow to approve a settlement.
Why it matters when you file a claim
Many of the protections you have as a class member come from Rule 23. It is the reason you receive a notice, the reason you can object or opt out, and the reason a judge must find a settlement fair before anyone gets paid.
The main parts
- ✓Rule 23(a): four threshold requirements, often summarized as numerosity, commonality, typicality and adequacy of representation.
- ✓Rule 23(b): the types of class actions. The (b)(3) type, used for most money-damages cases, adds predominance and superiority.
- ✓Rule 23(c): certification orders and notice, including the right to request exclusion in (b)(3) classes.
- ✓Rule 23(e): court approval of settlements, including a hearing and a finding that the deal is fair, reasonable and adequate.
- ✓Rule 23(g) and (h): appointment of class counsel and approval of attorneys' fees.
A simple example
When parties reach a settlement in federal court, they ask the judge for preliminary approval under Rule 23(e). If granted, notice goes to the class, class members get time to object or opt out, and the judge holds a fairness hearing before deciding on final approval. Each of those steps exists because the rule requires it.
Class actions in state courts use that state's procedural rules. Many resemble Rule 23, but deadlines and requirements can differ. Canada and the UK have their own separate frameworks.
Why you rarely need to read it
You don't need to know Rule 23 to file a claim. The notice translates its requirements into practical steps and dates. Still, knowing it exists helps you recognize your rights. If a settlement seems unfair, Rule 23 is the reason you can object. If you want to keep your own lawsuit, Rule 23 is the reason you can opt out of most damages classes. And if a deal looks suspicious, Rule 23 is why a judge must review it before anyone is paid.
How it relates to other terms
Rule 23 is the source of class certification and its tests, such as numerosity. The Class Action Fairness Act is a separate federal statute that helps decide which class actions end up in federal court.
Rule 23 builds in deadlines to object, opt out and claim. SettleScout tracks the claim deadline for each settlement you match and sends a reminder before it passes.
Frequently Asked Questions
Does Rule 23 apply in state court?
No. Rule 23 governs federal courts only. State courts apply their own class action rules, though many are modeled on it.
What does Rule 23 say about settlement approval?
Rule 23(e) requires court approval, notice to class members who would be bound, and a finding that the settlement is fair, reasonable and adequate.
Does Rule 23 set how much I get paid?
No. Payment amounts come from the settlement agreement and its plan of allocation, which the court reviews for fairness.
See every settlement you qualify for
Tell SettleScout which brands you use. It finds your matches, estimates your payouts and reminds you before deadlines.
Free to download