Pennsylvania Code
Title 231 - RULES OF CIVIL PROCEDURE
Part I - GENERAL
Chapter 1700 - CLASS ACTIONS
Appendix A - ANALYSIS OF THE RULES
Rule 1714 - Compromise. Settlement. Discontinuance

Rule 1714 incorporates the provisions of present Pa. R.C.P. 2230 and Federal Rule 23(e) which provide that a class action may not be compromised, settled or discontinued without the approval of the court after notice to the members of the class and hearing.

However, it contains an important provision not found in either of those rules. It provides that prior to certification the representative party may discontinue the action with court approval without notice to the members of the class if the court finds that the discontinuance will not prejudice the members of the class. Discontinuance in such case should presume that there has been no private compensation to the representative party as a consideration for his discontinuance of the action.

The court should conduct a careful inquiry before approving a request for discontinuance before certification. It should not be treated as a perfunctory matter. This is essential because the court has the responsibility to enter a finding that there will be no prejudice to other members of the class.

If the request for discontinuance is based upon the inability of the representative party to assume the costs of the litigation the court in its discretion should consider whether other representative parties might wish to bear such costs.