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What is a class action?
It's simple. A class action is a lawsuit filed by one or more plaintiffs (who are known as the "named plaintiffs") on behalf of others who have a similar legal claim. Because they allow people to join together as a group in one lawsuit against common defendants, class actions are important for consumers. The Stages of a Class Action
Case Initiated - A complaint is filed by the attorney(s) on behalf of the plaintiff(s). The defendant(s) respond(s) with an answer, motion to dismiss or other legal pleading. Both sides disclose evidence to each other that supports their respective cases. Plaintiff(s) file(s) a motion to certify the case as a class action. Defendant(s) file(s) opposing briefs to the plaintiff(s) motion for class certification. Judge certifies or denies the class action (if the judge denies, the case can continue as individual lawsuit(s) filed by the plaintiff(s). If certified, notification of class action to prospective claimants, who must choose whether to stay in the case or file their own individual case. Case is either set for trial, in trial, or has been tried before a judge or jury. A judgment of the trial court has been appealed to a higher level court. Deadline is set for class action members to submit claims with supporting documentation. Proceeds are distributed to class members. The distribution of the proceeds to class members has been completed, and the time for filing a claim under the settlement has expired.
A case can be dismissed at any point during the ten-stage process. This is not actually a stage, but the end of the process. This means that the case has terminated, at least for now, without the plaintiffs receiving any relief. The plaintiffs may have voluntarily dismissed the case, or the court may have ordered the case to be dismissed. Depending on the circumstances, the plaintiff may be able to file the action again later. NOTE: The stages outlined above are only meant as a general guide, and may not be applicable to all class action cases. Some class actions will proceed to a trial when settlement between the parties cannot be reached. Why are class actions important?
The ability to join together in one lawsuit is particularly important for our judicial system to function efficiently. Without class actions, thousands, possibly millions of claims might theoretically flood the court system. Instead, the class action procedure encourages the filing of one single case on behalf of all people harmed, minimizing the need for thousands of individual cases. More importantly, class actions encourage more responsible behavior on the part of corporate defendants. Why are class actions under attack? Over the past several years, certain corporations, PAC's, and other interests have attacked class actions and the attorneys who bring them. Much of this criticism has been unfounded. Find out why citizen's groups, consumer groups and other public watchdogs are trying to safeguard your rights. To learn more, Click Here. The old adage "power in numbers" holds true in class action cases. By spreading the costs of litigation, which can be substantial, among many people, each individual claim can achieve justice. Class actions, comprised of groups of consumers working together to stand up for their rights, demand the attention of corporations and other wrongdoers. In order for a court to certify a case as a class action, the plaintiffs must prove four legal requirements under the law.
Once a court is satisfied that the plaintiffs meet the four legal requirements for a class action, it will certify the case as a class action. |
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