Procedure
A class-action lawsuit is brought by a class of plaintiffs who suffer the same injury. A lead or a named plaintiff represents such a class of plaintiffs. The named plaintiff could be any individual belonging to the class or more than one individual. The damage suffered by the lead plaintiff or plaintiffs must be the same as the damage suffered by the rest of the plaintiffs in that class. In addition, the class-action lawsuit must adequately represent the interests of all the plaintiffs. Generally, the following steps are undertaken for filing a class-action lawsuit:
The procedure is initiated by filing a complaint against the defendant in court. The named plaintiff files such a complaint on behalf of the whole class.
Once the complaint is filed and served upon the defendants, the most important part of the process is class certification. Depending upon the regulations, either a motion has to be filed with the court or the court can of its own volition certify the proposed class.
To obtain the certification, one must show that the proposed class of plaintiffs have a proper and common legal claim against the defendant, there must be one or more than one named plaintiff, and the class must be large enough to qualify the lawsuit as a class-action.
After class certification, the next course of action is issuing notice to all those individuals who are considered part of the class. The general rule is that unless an individual opts out, they are considered to be a participant. They can opt out if desired by the law.
Once a settlement is reached, all the lawsuit participants are notified, and arrangements for distributing the funds are made on receiving the payment.
Pros and Cons
Following are some of the pros of filing a class-action lawsuit:
It is more practical for plaintiffs, defendants as well as courts.
It is beneficial for plaintiffs who otherwise would not have been able to afford to come to the court.
It is the appropriate remedy when individual lawsuits have very small claims.
It saves the time and resources of the courts.
There is less pendency of courts cases with class-action lawsuits as they don’t clog the court’s system.
It brings consistency in the treatment of similar injuries.
It motivates the defendants to arrive at a settlement that might not be the case in an individual claim.
Following are some of the cons involved with class-action lawsuits:
The amount of settlement has to be divided amongst many plaintiffs, which can sometimes prove inadequate on such division.
Class-action lawsuits can be time-consuming owing to the procedure.
The members of the class have to give up their control over the lawsuit to the lead plaintiff.
The plaintiffs cannot sue the defendant independently if the lawsuit’s outcome is not per their needs or expectations.
The legal representation will impact the whole class. If the legal representation is not good, the consequences will be suffered by all the plaintiffs even if they had no hand in choosing legal counsel.
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