United States Ninth Circuit

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Koby v. ARS Nat'l Servs., Inc., 13-56964

In a class action suit brought against a debt collection agency under the Fair Debt Collection Practices Act (FDCPA), the magistrate judge's order approving a class action settlement is reversed where: 1) the magistrate judge had the authority to enter final judgment under 28 U.S.C. section 636(c) because she obtained the consent of the named plaintiffs and the defendant; but 2) the magistrate judge abused her discretion by approving the settlement as fair, reasonable, and adequate under Federal Rule of Civil Procedure 23(e)(2) because there was no evidence that the injunctive relief afforded by the settlement had any value to the class members, yet to obtain it they had to relinquish their right to seek damages in any other class action.

Appellate Information

  • Decided
  • Published 2017/01/26




  • United States Ninth Circuit