All Federal · Class Certification
This brief explores the Arbitrary and Capricious standard of review as it pertains to class certification in federal courts.
Source: Arbitrary And Capricious
The Arbitrary and Capricious standard is a form of judicial review which assesses whether an administrative agency's decision lacks a rational basis. In the context of class certification, it evaluates whether the district court's decision is based on sound reasoning and consistent with the evidence presented.
This standard is applied primarily when reviewing decisions of district courts on class certification motions. Specifically, it assesses whether the court's factual findings and legal conclusions have a sufficient factual basis and are not arbitrary or unreasonable.
The Supreme Court held that commonality requires a showing that class members have suffered the same injury, emphasizing the need for a rational basis in establishing class certification.
This standard is more deferential to lower court decisions compared to de novo review, where courts independently review the record without any deference. It is also distinct from the abuse of discretion standard, which may allow for broader judicial freedom in decision-making, while Arbitrary and Capricious requires a more exacting review of reasoning.