NACBA Files Amicus in Fourth Circuit on Issue of Class Certification

Posted by NCBRC - August 3, 2011

NACBA and the National Association of Consumer Advocates has requested leave to file an amicus brief in the case of Gentry v. Circuit City, Inc. No. 10-2418 (4th Cir.) to address the issue of the proper standards to be applied by the bankruptcy court in determining whether to certify a class in bankruptcy. The class consisted of employee creditors of Circuit City. The amici argue that the lower courts erred in finding that the bankruptcy court had discretion, without conducting a factual inquiry under Rule 23, to find that the individual bankruptcy process was superior to class actions. The brief further argues that the bankruptcy court erred in finding that the class claim must be filed prior to the “claims bar date” rather than at “an early practicable time” as required by Rule 23.

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