Class Action Law Suits and Proof of Claim

West Wilmington Oil Field Claimants v. Nabors Corporate Services Inc. 

If a class has not been certified before bankruptcy, every member of the class should file an individual proof of claim before the bar date. That’s the practice point gleaned from a Fifth Circuit opinion on March 10.

If the class is so numerous that individual claims are not practicable, the opinion by Circuit Judge Edith Brown Clement counsels the attorney for the class to file a motion in bankruptcy court for authority to file a class claim, followed by a motion in bankruptcy court to approve the class.
​
Why go to so much trouble? Easy answer: The bankruptcy court may not approve a class claim, and a court like the Fifth Circuit might not allow individual claims after the bar date.

West Wilmington Oil Field Claimants v. Nabors Corporate Services Inc. (In re CJ Holding Co.), 21-20394 (5th Cir. March 10, 2022).