According to data from US Courts, more than 70% of federal civil cases are now part of a multidistrict litigation (MDL). Despite this, there is no formal guidance provided to MDL courts on how to promote outcomes that accurately reflect the merits of the cases involved.
This could soon change with the introduction of Federal Rule of Civil Procedure 16.1, a proposed rule slated to go into effect on December 1, 2025. This would be the first rule to specifically address MDLs and would govern the critical initial case management phase for these lawsuits.
MDLs centralize individual cases with common questions of fact in a single court. Here, common issues are addressed before remaining cases are remanded back to their home courts for individual trials. The parties involved must rely on the MDL court to efficiently address these common issues until the cases are resolved based on their merits or until a mutual settlement is reached.
Unfortunately, this commonsense approach, known as the merits-driven approach, has only recently gained popularity. In the past, it was a point of honour among MDL judges to settle cases instead of remanding them for trial, according to one federal judge. This approach led to judges keeping cases within the MDL to drive settlements.
If Rule 16.1 is enacted as it currently exists, it could help cement a shift in how MDLs are administered. The draft note accompanying Rule 16.1 suggests early engagement with the merits of cases to promote efficient resolution. This approach could discourage MDL courts from pushing for early settlement without proper engagement with the merits of cases.
However, despite Rule 16.1’s endorsement of this merits-driven approach, it doesn’t provide sufficient guidance for MDL courts to implement this approach optimally. For this reason, submissions have been made to the Advisory Committee on Civil Rules suggesting amendments to make the rule more prescriptive and offer better guidance within the rule itself.
Regardless of the final language adopted, the new Rule 16.1 represents a significant shift towards efficient and fair MDL case management. Legal professionals, particularly those involved in multidistrict litigation, will be monitoring this development closely.
The information in this article reflects the views and opinions of Hollingsworth partners Robert E. Johnston and Gary Feldon. It does not necessarily reflect the views of Bloomberg Industry Group, its affiliates or its owners.