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CR 23.05 Dismissal or compromise

Baldwin's Kentucky Revised Statutes AnnotatedRules of Civil Procedure

Baldwin's Kentucky Revised Statutes Annotated
Rules of Civil Procedure
IV Parties
CR 23. Class Actions (Refs & Annos)
Kentucky Rules of Civil Procedure (CR) Rule 23.05
CR 23.05 Dismissal or compromise
The claims, issues, or defenses of a certified class may be settled, or defenses of a certified class may be settled, voluntarily dismissed, or compromised only with the court's approval. The following procedures apply to a proposed settlement, voluntary dismissal, or compromise:
(1) The court must direct notice in a reasonable manner to all class members who would be bound by the proposal.
(2) If the proposal would bind class members, the court may approve it only after a hearing and on finding that it is fair, reasonable, and adequate.
(3) The parties seeking approval must file a statement identifying any agreement made in connection with the proposal.
(4) If the class action was previously certified under CR 23.02(c), the court may refuse to approve a settlement unless it affords a new opportunity to request exclusion to individual class members who had an earlier opportunity to request exclusion but did not do so.
(5) Any class member may object to the proposal if it requires court approval under this subdivision (5); the objection may be withdrawn only with the court's approval upon a showing of good cause.
(6) Disposition of residual funds.
(a) “Residual Funds” are funds that remain after the payment of all approved class member claims, expenses, litigation costs, attorneys' fees, and other court-approved disbursements to implement the relief granted. Nothing in this rule is intended to limit the parties to a class action from agreeing to, or the trial court from approving, a settlement that does not create residual funds.
(b) Any order entering a judgment or approving a proposed compromise of a class action certified under this rule that establishes a process for identifying and compensating members of the class shall provide for the disbursement of residual funds. In matters where the claims process has been exhausted and residual funds remain, not less than twenty-five percent (25%) of the residual funds shall be disbursed to the Civil Rule 23 Account maintained by the Kentucky IOLTA Fund Board of Trustees pursuant to Supreme Court Rule 3.830(20). Such funds are to be allocated to the Kentucky Civil Legal Aid Organizations based upon the current poverty formula established by the Legal Services Corporation to support activities and programs that promote access to the civil justice system for low-income residents of Kentucky.

Credits

HISTORY: Amended by Order 2013-14, eff. 3-6-14; prior amendments eff. 1-1-14 (Order 2013-14); 1-1-11 (Order 2010-09); adopted eff. 7-1-69

Editors' Notes

HISTORICAL AND STATUTORY NOTES
Note: CR 23.05, formerly compiled as CR 23.02, transferred eff. 7-1-69; adopted eff. 7-1-53.
Rules Civ. Proc., Rule 23.05, KY ST RCP Rule 23.05
Current with amendments received through October 1, 2018
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