US · rules
E.D.N.Y. Local Civil Rule 23.1
Fees in Class Action and Shareholder Derivative Actions
Fees for attorneys or others must not be paid upon recovery or compromise in a class
action or a derivative action on behalf of a corporation unless allowed by the court after
a hearing on such notice as the court may direct. The notice must include a statement of
the names and addresses of the applicants for the fees and the amounts requested
respectively and must disclose any fee sharing agreements with anyone. Where the
court directs notice of a hearing upon a proposed voluntary dismissal or settlement of a
class action or a derivative action, the above information regarding the applications
must be included in the notice.
For relevant historical context for this local rule, consult the Appendix of Committee Notes.
History
PRE-2024 COMMITTEE NOTE The Committee recommends the retention of Local Civil Rule 23.1.1. Unlike Fed. R. Civ. P. 23 (which deals with class actions), Fed. R. Civ. P. 23.1 (dealing with shareholder derivative actions) does not contain any provisions dealing with attorney’s fees. Local Civil Rule 23.1.1 has been part of the local rules for many years and has proven its usefulness in derivative actions. 2016 COMMITTEE NOTE The Committee in 2011 recommended that prior Local Rule 23.1 regarding class actions be deleted as unnecessary. The Second Circuit's recent decision in Bernstein v. Bernstein Litowitz Berger & Grossman LLP, 814 F.3d 132, 137 n.2 (2d Cir. 2016), stated that the prior Local Rule is not redundant with Fed. R. Civ. P. 23(h) regarding fee sharing arrangements. The Committee therefore recommends reinstating Local Rule 23.1 and combining it with Local Rule 23.1.1 to cover both class actions and derivative actions.
Provenance
- Source
- www.nyed.uscourts.gov
- Retrieved
- 2026-09-18
- Edition
- fed-district-2026-09-18
- Content hash
c97b44a372b820a651274e159efc18abf029c3f0bd9fa962685a104c83a0aba6
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