10th Circuit Adopts Heightened Scrutiny Standard For Kicker, Clear-Sailing Clauses

Mealey's (May 19, 2021, 11:46 AM EDT) -- DENVER — In an issue it noted was one of first impression, the 10th Circuit U.S. Court of Appeals on May 10 ruled that the heightened scrutiny standard must be applied prior to granting final approval of settlement agreements that contain “kicker” and “clear-sailing” agreements and, after considering the scrutiny applied by the trial court to a class settlement in a case over defective Samsung washing machines, determined that there was no abuse of discretion when the settlement agreement was approved....