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SB435.html
04 LC 29 1090ER
Senate Bill
435 By: Senators Tolleson of the 18th, Price of the
56th, Johnson of the 1st and Unterman of the 45th
A BILL TO BE
ENTITLED AN ACT
To amend Code Section 9-11-23 of the Official Code of
Georgia Annotated, relating to class actions, so as to provide for procedures,
conditions, and limitations on certification of class actions; to provide for
appellate procedures relating to class actions certification; to provide for
related matters; to provide an effective date; to repeal conflicting laws; and
for other purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF
GEORGIA:
SECTION 1.
Code Section 9-11-23 of the Official Code of Georgia
Annotated, relating to class actions, is amended by striking subsection (f), and
inserting in lieu thereof the
following: "(f)(1)
The appropriate appellate court may in its discretion permit an appeal
from an order of a trial court granting or denying class action certification
under this Code section if application is made to it within ten days after entry
of the order. An appeal does not stay proceedings in the trial court unless the
trial judge or the appellate court so orders. No class of civil
litigants shall be certified or recognized by any court of this state unless
there shall have been compliance with the procedures for certification of the
class set forth in this subsection. (2) As soon
as practicable after the commencement of an action in which claims or defenses
are purported to be asserted on behalf of or against a class, or as soon as
practicable after such assertions in an amended pleading, but in no event prior
to the time allowed by law for each party, including, but not limited to,
counterclaim, cross-claim, and third-party defendants to file an answer or other
pleading responsive to the complaint, counterclaim, cross-claim, or third-party
claim, the court shall hold a conference among all named parties to the action
for the purpose of establishing a schedule, in the same manner and to the same
extent contemplated by Code Section 9-11-16, for any discovery in which the
parties may wish to engage which is both allowed by Code Section 9-11-26 through
Code Section 9-11-37 and germane to the issue of whether the requested class
should or should not be certified. At this conference, the court may set a date
for a hearing on the issue of class certification, but such hearing may not be
set sooner than 90 days after the date on which the court issues its scheduling
order pursuant to the conference unless a shorter time is agreed to by all
parties. (3) Upon motion of any party, the
court shall, except for good cause shown and even then only if the interests of
justice require that it not do so, stay all discovery directed solely to the
merits of the claims or defenses in the action until the court shall have made
its decision regarding certification of the class. In considering such a motion,
the court shall consider whether any prejudice to the plaintiff exists because
of the filing by the defendant of a motion for summary judgment pursuant to Code
Section 9-11-56 prior to the court´s decision regarding class
certification. (4) The court shall, on motion of
any party, hold a full evidentiary hearing on class certification. The hearing
shall be recorded, and all named parties to the action shall be given notice of
the date, time, and place of the hearing by written notification given to the
party´s attorney, or if appearing pro se, to the party, no later than 60
days prior to the date set for the hearing. At the hearing, the parties shall be
allowed to present, in the same manner as at trial, any admissible evidence in
support of or in opposition to the certification of the
class. (5) When deciding whether a requested
class is to be certified, the court shall determine, by employing a rigorous
analysis, if the party or parties requesting class certification have proved its
or their entitlement to class certification under this Code section. The burden
of coming forward with such proof shall at all times be on the party or parties
seeking certification, and if such proof shall not have been adduced, the court
shall not order certification of the class. In making this determination, the
court shall analyze all factors required by this Code section for certification
of a class and shall not order certification unless all such factors shall have
been established. In announcing its determination, the court shall place in the
record of the action a written order addressing all such factors and specifying
the evidence, or lack of evidence, on which the court has based its decision
with regard to whether each such factor has been established. In so doing, the
court may treat a factor as having been established if all parties to the action
have so stipulated on the record and if the court shall be satisfied that such
factor could be proven to have been
established. (6) Nothing in this Code section
shall affect, or be construed to affect, any provision of Code Section 9-11-12
or Code Section 9-11-56. (g) A court´s
order certifying a class or refusing to certify a class action shall be
appealable in the same manner as a final order to the appellate court which
would otherwise have jurisdiction over the appeal from a final order in the
action. Such appeal may only be filed within 42 days of the order certifying or
refusing to certify the class. The filing of such appeal, the failure to file an
appeal, or the affirmance of the certification or denial order shall in no way
affect the right of any party, after the entry of final judgment, to appeal the
earlier certification of, or refusal to certify, the class. If the appeal is not
the first appeal taken by the party, the subsequent appeal shall be based upon
the record at the time of final judgment and shall be considered by the court
only to the extent that either the facts or controlling law relevant to
certification have changed from that which existed or controlled at the time of
the earlier certification or refusal to certify. During the pendency of any such
appeal, the action in the trial court shall be stayed in all respects. Following
adjudication on appeal or, if the initial appeal is to an intermediate appellate
court, adjudication of the action on any writ of certiorari granted by the
Supreme Court of Georgia, if the class is not to be certified, the stay in the
trial court shall automatically dissolve and the trial court may proceed to
adjudicate any remaining individual claims or defenses. If, after such appeal or
procedure on writ of certiorari, the class is to be certified, the stay shall
likewise dissolve and the trial court shall proceeed with adjudication on the
merits. Such certification shall constitute a final and binding determination
with respect to that class for the remainder of the adjudication of the
action."
SECTION 2.
This Act shall become effective upon its approval by the
Governor or upon its becoming law without such approval.
SECTION 3.
All laws and parts of laws in conflict with this Act are
repealed.
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