(Article from Insurance Law Alert, April 2024)
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This month, the Judicial Conference’s Advisory Committee on Civil Rules approved a new rule aimed at promoting fairness and efficiency in the context of multi-district litigation (“MDL”).
Rule 16.1 provides guidance to judges presiding over MDL, offering a framework for the initial management of cases, including matters related to discovery and settlement conferences, and the appointment of and compensation for lead plaintiffs’ attorneys, among other things. The Rule maintains significant judicial flexibility in the oversight of MDL.
Additionally, while the new Rule does not directly address the pressing concern of meritless claims in MDL, it does specify that judges should discuss “how and when the parties will exchange information about the factual bases for their claims and defenses,” which might allow for a more efficient dismissal of insufficient or frivolous claims. See Rule 16.1(b)(3)(B).
Rule 16.1 marks the first rule in the Federal Rules of Civil Procedure dedicated to multi-district litigation. The comprehensive rule, which comes after a five-year period of significant debate and public comment, must still be endorsed by the Committee on Rules of Practice and Procedure, which is expected to occur in upcoming weeks. Following such endorsement, Rule 16.1 is scheduled for adoption by the United States Supreme Court and transmittal to Congress in 2025, with a target effective date of December 1, 2025.