The process of introducing a consent decree begins with negotiation. One of three things happens: a lawsuit is filed and the parties concerned reach an agreement prior to adjudication of the contested issues; a lawsuit is filed and actively contested, and the parties reach an agreement after the court has ruled on some issues; or the parties settle their dispute prior to the filing of a lawsuit and they simultaneously file a lawsuit and request that the court agree to the entry of judgment. The court is meant to turn this agreement into a judicial decree. In many cases, the request for entry of a consent decree prompts judges to sign the documents presented then and there. In some cases, however, such as criminal cases, the judge must make some sorts of assessments before the court's entry of the agreement as a consent decree.
The usual consent decree is not self-executing. A consent decree is implemented when the parties transform their agreements from paper to reality. The judge who signed the decree may have no involvement or may monitor the implementation. The judge can only step in to assist in enforcement if a party complains to the court that an opponent has failed to perform as agreed. In this case, the offending party would be committed for contempt.
Typically, a consent decree dispenses with the necessity of having proof in court, since by definition the defendant agrees to the order. Thus, the use of a consent decree does not involve a sentence or an admission of guilt. Likewise, the consent decree prevents a finding of facts, so the decree cannot be pleaded as res adjudicata.
Because judicial decrees are part of government civil enforcement in settlements that two parties typically agree to before litigation is filed, they act as a hybrid between a judicial order and a settlement without a party conceding criminal responsibility.
Frederick Pollock and Frederic Maitland describe how courts during the 12th century of Medieval Europe used "fines" as a form of court orders to settle land disputes among litigants with the punitive power and legitimacy of courts through the use of consent decree. In the United States, 19th and 20th century legal treatises show that consent decrees and the role of the court in the parties' settlement was ambiguous. The 1947 Corpus Juris Secundum declares that although consent decrees are "not the judgment of the court", they do have the "force and effect of a judgment".
Many of the early court cases involving consent decree set precedents for the roles that judges would play in the negotiating, approving, interpreting, and modifying a settlement between two parties. The role of the judge in regard to consent decree wavers between "rubber stamping" versus applying their own judgments to a proposed settlement. In 1879, Pacific Railroad of Missouri v. Ketchum bound the court's role in consent decrees to simply supporting to an agreement that parties have already established on their own. In regard to antitrust decrees, the first consent decree used in antitrust regulation under the Sherman Antitrust Act was Swift & Co. v. United States. With Swift & Co. v. United States, the Supreme Court ruled that a consent decree could be modified or terminated only when new developments over time bring out a "grievous wrong" in how the ruling of the consent decree affects the parties of the suit. The Supreme Court supported this limited flexibility of consent decrees in United States v. Terminal Railroad Association: "[A] decree will not be expanded by implication or intendment beyond the meaning of its terms when read in the light of the issues and the purposes for which the suit was brought."
Consent decrees have been used to remedy various social issues that deal with public and private organizations, where a large number of people are often concerned even if they may not be members of either party involved. Examples have included Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act, and environmental safety provisions.
Title VII of the Civil Rights Act of 1964 prohibits discrimination by employers on the basis of race, sex, color, religion, or national origin. Most often, the remedies to workplace discrimination carried out under this Act take place in the form of consent decrees, where employers may have to provide monetary awards or introduce policies and programs that eliminate and prevent future discrimination. These may include decrees that require the creation of new recruitment and hiring procedures to gain a more diverse pool of job applicants, upgrading job and promotion assignment systems, or offering training programs focusing on discrimination and diversity. Under the Civil Rights Act of 1964, the Equal Employment Opportunity Commission (EEOC) was created to be a major advocate and enforcer of the previously mentioned Title VII remedies. In a landmark decision in 1973, the EEOC, Department of Labor and AT&T compromised on a consent decree that phased out discrimination within recruiting, hiring and employment methods in regard to minorities and women. This established a precedent for other large, private U.S. companies to avoid litigation and government oversight by creating decrees in cooperation with Title VII.
The Americans with Disabilities Act (ADA) was a civil rights law passed in 1990 that prohibits discrimination and ensures that people with disabilities have equal access to the opportunities and benefits available to the wider American population. Institutions that violate the requirements of the ADA enter consent decrees typically resulting in a payment from the corporation to those wronged, which may serve to discourage future discrimination, in addition to a change in policy to avoid future payouts. Examples of altered practices through the use of a decree have included restructuring building property or the removal of barriers to allow for physical accessibility for all persons, providing supplemental communication tools such as sign language interpreters for those that are hard of hearing, and eliminating discriminatory practices against those that have a disability.
Consent decrees have been used to alter environmental policy, one example being the "Flannery Decision", or the Toxics Consent Decree, entered into by the Environmental Protection Agency and the Natural Resources Defense Council, an environmental advocacy group. This decree, signed in 1976, highly restructured the way the EPA dealt with harmful substances by requiring the agency to list and regulate 65 toxic pollutants and to regulate pollutant discharges on an industry-by-industry basis (i.e., effluent guidelines regulations) rather than by singular pollutants. This decree went on to shape the regulations and administration procedures of water policy within the United States, particularly through the Clean Water Act.
Scholars find advantages and disadvantages to using the consent decree. In addition, consent decrees can affect those outside of the litigants, such as third parties and public interests.
Consent decrees have appeared in various forms of popular media, often as plot devices to explore legal and political themes.
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Epstein 2007, p. 6. - Epstein, Richard A. (2007). Antitrust Consent Decrees in Theory and Practice: Why Less Is More. Washington DC: AEI Press. ISBN 978-0-8447-4250-2. https://archive.org/details/antitrustconsent0000epst
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