Class Action Lawsuits

Class action lawsuits are legal proceedings that allow one person, or a small number of individuals, to bring a claim on behalf of hundreds or thousands of other persons in a similar situation with similar complaints against the same entity. These proceedings serve as a significant tool against powerful corporations and industries.

The strength of a class action lawsuit places the person with a claim (Plaintiff) on level with influential corporate entities (Defendant). There are certain requirements that must be met in order to proceed with a class action lawsuit.

In order to proceed with a class action lawsuit, a plaintiff's lawyer must first file the lawsuit and ask the Court to approve or certify a class. In making this decision, the Court will consider four major factors:

• First of all, there must be enough people affected by the illegal practice to justify a class action. The Court will take into consideration whether it is better to hear them together as a class or separately.
• Second, the complaints of the plaintiffs must be based on legal grounds, which are common to all class members.
• Third, the damage or injuries to all members of the prospective class must be similar and the claims should be typical of all members of the class.
• Fourth, the law firm bringing the case must be willing and able to represent the interests of all members of the class.

After considering the factors above, the Court may certify the class and allow the case to proceed as a class action lawsuit. At that time, prospective members of the class must be notified of the action and allowed an opportunity to opt out of the class representation. Class members, who opt out, then have an opportunity to proceed in an individual claim against the defendant. Individuals, who qualify as members of the class and fail to exclude themselves from the class action, are bound by the final judgment in the case.

Certain areas of the law are better suited for class action cases than others. Following are some examples of claims well suited for class action lawsuits:

• Deceptive Trade Practices Claims against a corporation or group of corporations.
• Claims against manufacturers for injuries resulting from unsafe products like prescription drugs, automobiles, machinery, recalled products and anything that is made that causes injury
• Insurance companies routinely denying the payment of benefits in disability claim which results in claims.