Everything You Need to Know About Class Actions
Many people have heard the term “class action,” but they may not understand what this means. This guide provides an overview of everything you need to know about class actions.
What Is a Class Action?
Harvard Law School defines a class action as a type of civil lawsuit brought by similarly situated people who have been harmed in the same way by the same entity. Class actions are brought by representative plaintiffs who have suffered in the way described in the complaint. They stand as the face of the case. However, they are bringing the action for themselves and on behalf of many other people.
Common Types of Class Action Lawsuits
Class action cases often involve situations in which many people have been harmed in the same way. It may not make sense for a person to sue if the damage was slight, such as their telecommunications provider overcharging them. However, when everyone’s claims are added together, damages may amount to millions of dollars.
One of the most common reasons for a class action lawsuit is defective products. These products may harm or kill consumers. For example, consumers may file a class action lawsuit if they are harmed by products such as:
- Motor vehicles
- Auto parts
- E-cigarettes
- Medical devices
- Pharmaceutical drugs
- Tools
- Machinery
Other common causes of class action cases include aircraft accidents, environmental claims, and securities fraud cases.
How to Certify a Class
Before a class action can be brought, the class must be “certified.” Under the Federal Rules of Civil Procedure, this requires showing the following:
- The Class Is Large: The class must be so large that it is unreasonable to join all individuals with similar claims as parties to the case.
- The Claims Are Similar: The affected individuals’ claims must be similar in nature and involve similar questions of fact or law.
- The Representative Claimants Have Typical Claims: The claims of the class at large are typical of the individuals who will serve as class representatives.
- There Is Capable Representation: The representative parties will fairly and adequately protect the class’s interests.
Because class actions are unique, working with an experienced lawyer is essential.
Benefits of Class Actions
There are several benefits of pursuing a class action, including the following:
- Shared Legal Costs: Some cases may not be feasible to bring individually because the costs of pursuing a civil claim may be exorbitant compared to the potential compensation the plaintiff can recover. By sharing legal costs, claimants can join together and pursue fair compensation.
- Judicial Efficiency: Class actions help prevent the courts from being flooded with similar claims. The case can be handled at one time.
- Equitable Division: Because the court supervises the class action process, the court can ensure that recovery is fair to all claimants. Different groups of parties may be affected in different ways, but the court can ensure that similarly affected people receive a similar portion of the proceeds.
- Avoiding Inconsistent Judgments: Inconsistent judgments can result when multiple claims are brought against the same defendant in different jurisdictions.
Despite these benefits, there are drawbacks to be aware of.
Drawbacks of Class Actions
One primary drawback is that the class has representatives, but other parties may feel that their claims are not individually considered and that the class representatives do not adequately represent their interests.
It can be difficult for lawyers to provide hundreds or thousands of clients with individual attention. A class action can also prevent an individual claimant from being able to settle their claim when settling might have been in their best interest.
Contact The Dallas Personal Injury Law Firm of Benton Accident & Injury Lawyers Today
If you’ve been injured in an accident in Dallas, TX, contact us for more information, please contact the experienced Dallas personal injury lawyers at Benton Accident & Injury Lawyers today. We offer free consultations.
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