Fail-Safe Class

Fail-Safe Class

Fail-Safe Class

A fail-safe class definition incorporates the ultimate liability determination, such as all persons who were unlawfully charged a fee. Members who lose on the merits fall outside the definition and are not bound by the judgment.

Courts reject such definitions.

Alternative Names:

Fail-Safe Definition, Improper Class Definition

Why it Matters?

The defect is that a fail-safe class produces no preclusive effect against members, so a defendant winning at trial faces the same claims again from people who were never bound. That one-way outcome is why courts reject these definitions rather than treating them as harmless. The fix is defining membership by objective conduct rather than by legal conclusion, which plaintiffs can usually accomplish through amendment.

Frequently Confused with

Related terms

Frequently asked questions

Why do courts reject fail-safe classes?

Why do courts reject fail-safe classes?

Because members who lose on the merits fall outside the definition and are not bound, so a defense verdict provides no preclusive protection.

Is the defect curable?

Is the defect curable?

Usually. Redefining membership by objective conduct rather than by legal conclusion addresses it, and courts frequently permit amendment.