Class-action lawsuits
A class action is a device where large numbers of individuals whose interests are sufficiently related may bring suit. Thus it is more efficient to adjudicate their rights or liabilities as a group in a single action than to do so in a series of separate individual suits. Most class actions are called “plaintiff class actions,” although in some cases the action may be brought against a defendant class as a defendant class action. Most class-action lawsuits are filed for compensatory (money)
DAMAGES. Class actions may also be filed to resolve disputes over a “limited fund,” where the money available is inadequate to fully compensate all class members. A class action may seek injunctive relief, e.g., it may be filed to request that the court order the police or other authorities to discontinue an unconstitutional practice. Another type of class action is one that seeks a declaratory judgment, a court decision in a civil case telling the parties what their rights and responsibilities are without awarding damages or ordering any action be taken. Generally, before a court certifies a class action (determines that the suit may proceed as a class-action suit), it must conclude that there are too many class members for them all to be named as parties in the lawsuit. The claims of the “class representatives” must arise from facts or law common to the class members. In most cases, class members do not technically join in the litigation but decide to participate by not “opting out.” If the constitutional and procedural protections required for fairness are met in the underlying action, all absent class members are bound to the judgment or settlement of the case. However, if the action is primarily for compensatory damages, absent class members are entitled to notice and an opportunity to opt out (exclude themselves) from the proceedings. If a person opts out, he or she is not bound by any judgment or settlement of the class action. The complex nature of many class actions and the danger of violating the
DUE PROCESS rights of absent class members have led many rule-makers to provide the trial judge with authority to control and manage numerous aspects of the lawsuit. Further, in order to provide additional protection for absent class members, class-action provisions typically require court approval of any settlement or compromise of the class claims entered into between the class representatives and the defendant. In recent years the subject of class actions has received more attention from the legal community and the media than any other area of
CIVIL PROCEDURE, and it has even inspired film producers to make award-winning movies about them. Several high-profile cases involving tobacco litigation, asbestos claims, cases involving securities
FRAUD, etc., have evoked public concern and stirred considerable debate. Some individuals claim that class actions should be used with greater frequency to spur major social change, to make
CORPORATIONs pay up for their follies, and to provide recourse for those who otherwise would not find it economically feasible to litigate their grievances. Others argue that class actions are being brought not to defend the public interest but to enrich attorneys, force corporations into settlement with the threat of bigger jury awards, and waste the courts’ valuable resources. They point to the fact that many of the suits have been extremely burdensome and expensive for litigants, and only a few have reached the stage of judgment.