SB 259 — Civil actions filed on behalf of multiple persons; types of class actions.

SESSION HOUSEENROLLED SUBSTITUTEVIRGINIA 24107798DACTS AMENDMENT IN THE NATURE OF AASSEMBLY SUBSTITUTE–– (ProposedCHAPTER byE theAn HouseAct Committee for Courts of Justice on February 16, 2024) (Patrons Prior to Substitute––Senators Surovell and Bagby [SB 587]) A BILL to amend the Code of Virginia by adding in Title 8.01 a chapter numbered 5.2, consisting of sections numbered 8.01-267.10 through 8.01-267.15, relating to civil actions filed on behalf of multiple persons;

class actions.actions.rough 8.01-267.15, relating to civil actions filed on behalfRof O [S 259] L Approved L Be it enacted by the General Assembly of Virginia:

E 1.

That the Code of Virginia is amended by adding in Title 8.01 a chapter numbered 5.2, D consisting of sections numbered 8.01-267.108.01-26CHAPTER through5.2. 8.01-267.15, as follows:

CHAPTER8.01-267.15, 5.2.as follows:

H A.

One or more members of a class may, as representative parties on behalf of all members, bOingbring a civ1.civil action or may be proceeded against in a civil action, provided that:

The1. class is so numerous that joinder of all members in accordance with chapter 5.1 (§ 8.01-267.1 et seq.) or proceeding with such actions on an individual basis is impracticable or contrary to judicial economy;

2.The class is so numerous that joinder of all members in accordance with chapter 5.1 (§ 8.01-267.1 et seq.) or proceeding with such actions on an individual basis is impracticable or contrary toBjudicial economy;

There5 are3. questions of law or fact common to the class;

SThe 3.claims or defenses of the representative parties are typical of the claims or defenseE of the class;

Theand claimsR or4. defenses of the representative parties are typical of the claims or defenses of the class;

The representative parties shall fairly and Eadequately B.protect the interests of the class.

B.

S 1.

Prosecuting separate actions by or against individual class members would create a risk of (i) inconsistent or varying adjudications of individual class members that would establish incompatible standardspractical ofmatter, conductwould forbe thedispositive opposingof partythe orinterests (ii) adjudications of individualthe classother members tBat,who asare anot parties to thea individual adjudications or would substantially impair or impede their ability to protect their interests;

or I 35 3.

The court finds that the questions of law or fact common to class members predominate over any :questions affecting only individual members, and that a class action is superior to other available methods for fairly and efficiently adjudicating the controversy.

36In questionsmaking affectingthis onlyfinding, individual members, and that a class action is superior to other availTble 38 consider (i) the classcourt members'may interests in individually controlling the prosecution or defense ofmay 39 separate actions;

(ii) the extent and nature of any litigation concerning the controversy already begun 40 by or against class members;

and (v) Ehethe practical ability of individual class members to pursue their claims without certification.

Such order shall define the class, identify the practicablerepresentative afterparty a person brings an action or anparties, actionand isappoint brought against a person as a classas is representative whether to certify the action as a class action.counsel.

AnyThe ordercourt thatshall grantsdetermine as early as is practicable after a person brings an action or deniesan action is brought against a person as a class certification may be amended or altered prior to final judgment.judgment.Any order that grants or denies class B.

B.For any class certified pursuant to subdivision B 1 or 2 of § 8.01-267.10, the court may direct appropriate notice to such class.

For any class certified pursuant to subdivision B 13 of § 8.01-267.10, or 2upon ordering notice pursuant to § 8.01-267.13 to a class proposed to be certified for the purposes of settlement in accordance with subdivision B 3 of § 8.01-267.10, the court mayshall Sirectdirect appropriateto class members notice as is reasonable under the circumstances, including sending individual notice to suchall class.members who can be identified through reasonable effort.

For any class certified pursuant to subdivision B 3 of § 8.012267.10, or upon ordering notice pursuant to § 8.01-267.13 to a class proposed to be certified for the purp9ses of notice as is reasonable under the circumstances, including sending individual notice to all mem1ers who can be identified through reasonable effort.

The notice shall state clearly and concisely in(iii) plain, easily understood language (i) the natureclass ofclaims, theissues, action;or defenses;

(ii)(iv) thethat definitiona ofclass themember classmay certified;enter an appearance through anified;

(iii)attorney; the class claims, issues, or defenses;

(iv) that a class member may enter an appearance through an attorney;

(vi) the of 3 time and manner for requesting such exclusion;

and (vii) the binding effect of a class judgment on SB259H1 2 of 3 members in accordance with subsection C.

Unless the parties agree otherwise, the opponents of the class shall bear the expense of the notice required by this subsection.

The court may require the party opposing the class to cooperate in securing the names and addresses of the persons within the class defined by the court for the purpose of providing individual notice.

The relief provided for the class is adequate, including the costs, risks, and delay of a trial and of 3 appeal, the effectiveness of any proposed method of distributing relief to the class, the terms of any subsectionof D;3 subdivision 3;

andandattorney attorney fees, and any agreement required to be identified in accordance with 4.

E 3.

The parties seeking approval shall file a statement identifying any agreement made in connection with such proposed settlement, voluntary dismissal, or compromise.

R 4.

If the class action was previously certified pursuant to subdivision B 3 of § 8.01-267.10, the court class member to request exclusion if such individual class member had an earlier opportunity to request exclusion but did not do so.