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Class action: Difference between revisions
Adding further detail on the requirements of a class action |
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A class action (or class | A class action (or class action lawsuit) is a type of civil lawsuit that allows a group of individuals (the "class") to make a unified, collective civil case against an entity<ref name=":0">https://www.investopedia.com/terms/c/classaction.asp</ref>. Rule 23 of the Federal Rules of Civil Procedure permits one or more parties to "sue or be sued as representative parties on behalf" of all those similarly situated<ref name=":1">https://charlestonlaw.libguides.com/c.php?g=1255231&p=9195720</ref>. | ||
When a class action succeeds, the class receives compensation, and after legal fees, all members of the class receive a share of the compensation<ref name=":0" />. | When a class action succeeds, the class receives compensation, and after legal fees, all members of the class receive a share of the compensation<ref name=":0" />. | ||
Class actions originated in the US but are now recognised in some other jurisdictions, including Canada, the UK, and some European countries. | Class actions originated in the US but are now recognised in some other jurisdictions, including Canada, the UK, and some European countries. This article discusses US law except where otherwise specified. | ||
== Requirements == | == Requirements == | ||
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<blockquote>(2) there are questions of law or fact common to the class</blockquote> | <blockquote>(2) there are questions of law or fact common to the class</blockquote> | ||
Known as the "commonality" requirement. | Known as the "commonality" requirement. This means that the class has a common case to be made against the defendant, either regarding what has occurred or the way it was unlawful. | ||
=== Typicality === | === Typicality === | ||
<blockquote>(3) the claims or defenses of the representative parties are typical of the claims or defenses of the class</blockquote> | <blockquote>(3) the claims or defenses of the representative parties are typical of the claims or defenses of the class</blockquote> | ||
Known as the "typicality" requirement. | Known as the "typicality" requirement, this means that the class action's claim actually represents the claims of its members. | ||
=== Adequacy of the representation === | === Adequacy of the representation === | ||
<blockquote>(4) the representative parties will fairly and adequately protect the interests of the class</blockquote> | <blockquote>(4) the representative parties will fairly and adequately protect the interests of the class</blockquote> | ||
Known as the "adequacy of representation" requirement. | Known as the "adequacy of representation" requirement, this means that the [[lead plaintiff]] (the person representing the class) has a shared interest in the case. In almost all cases, this requires that the lead plaintiff must be personally affected by the issue<ref>https://www.classaction.org/blog/what-does-it-mean-to-be-the-lead-plaintiff-in-a-class-action-lawsuit</ref>. | ||
== Importance for consumer rights == | == Importance for consumer rights == | ||
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== Obstacles == | == Obstacles == | ||
=== Forced arbitration === | === Forced arbitration === | ||
[[ | Companies can include [[forced arbitration]] clauses in their terms and conditions to protect themselves from many kinds of lawsuits. These clauses often restrict customers from participating in class actions. | ||
== Organisations supporting class action == | |||
Note the below organisations are not law firms but can provide support for those seeking to understand or pursue class actions. | |||
=== United States === | |||
* [https://www.classaction.org/ ClassAction.org] | |||
=== Canada === | |||
* [https://www.cba.org/Publications-Resources/Class-Action-Database Canadian Bar Association - Class Action Database] | |||
=== United Kingdom === | |||
* [https://www.citizensadvice.org.uk/ Citizens Advice] | |||
== References == | == References == | ||
Latest revision as of 20:46, 19 January 2025
A class action (or class action lawsuit) is a type of civil lawsuit that allows a group of individuals (the "class") to make a unified, collective civil case against an entity[1]. Rule 23 of the Federal Rules of Civil Procedure permits one or more parties to "sue or be sued as representative parties on behalf" of all those similarly situated[2].
When a class action succeeds, the class receives compensation, and after legal fees, all members of the class receive a share of the compensation[1].
Class actions originated in the US but are now recognised in some other jurisdictions, including Canada, the UK, and some European countries. This article discusses US law except where otherwise specified.
Requirements[edit | edit source]
A class action must meet all requirements under Rule 23(a) to be legally valid. The four requirements are listed below[2].
Numerosity[edit | edit source]
(1) the class is so numerous that joinder of all members is impracticable"
Known as the "numerosity" requirement, this means that it would be not be manageable for the court to handle every claimant as a full legal participant in the suit. Numerosity is presumed at 40 or more claimants[3].
Commonality[edit | edit source]
(2) there are questions of law or fact common to the class
Known as the "commonality" requirement. This means that the class has a common case to be made against the defendant, either regarding what has occurred or the way it was unlawful.
Typicality[edit | edit source]
(3) the claims or defenses of the representative parties are typical of the claims or defenses of the class
Known as the "typicality" requirement, this means that the class action's claim actually represents the claims of its members.
Adequacy of the representation[edit | edit source]
(4) the representative parties will fairly and adequately protect the interests of the class
Known as the "adequacy of representation" requirement, this means that the lead plaintiff (the person representing the class) has a shared interest in the case. In almost all cases, this requires that the lead plaintiff must be personally affected by the issue[4].
Importance for consumer rights[edit | edit source]
Class actions are of particular importance for upholding consumer rights, as they allow claimants to receive justice when it would be too costly and time-consuming for individuals to separately seek justice on a widespread issue.
Obstacles[edit | edit source]
Forced arbitration[edit | edit source]
Companies can include forced arbitration clauses in their terms and conditions to protect themselves from many kinds of lawsuits. These clauses often restrict customers from participating in class actions.
Organisations supporting class action[edit | edit source]
Note the below organisations are not law firms but can provide support for those seeking to understand or pursue class actions.
United States[edit | edit source]
Canada[edit | edit source]
United Kingdom[edit | edit source]
References[edit | edit source]
- ↑ 1.0 1.1 https://www.investopedia.com/terms/c/classaction.asp
- ↑ 2.0 2.1 https://charlestonlaw.libguides.com/c.php?g=1255231&p=9195720
- ↑ https://www.lexisnexis.com/community/insights/legal/practical-guidance-journal/b/pa/posts/class-action-rule-23-a-prerequisites-standards-chart-2d-cir
- ↑ https://www.classaction.org/blog/what-does-it-mean-to-be-the-lead-plaintiff-in-a-class-action-lawsuit
