Class Action Lawsuit

Class action lawsuits are used to group together all of the injured parties so that it is more efficient for the courts to deal with. One plaintiff will take the lead role, and all others will be able to take a backseat while the verdict is determined. Another reason these can be useful is that many times the defendant is a large corporation that is able to efficiently fight off a single lawsuit. However, if the problem with their good or service is widespread, then grouping all of these people together not only creates strength in numbers but proves that there is an issue with what was provided by the defendant. This is important, as the number of plaintiffs can grow throughout the process. It can be tough for every person injured to be informed from the start so those who find out about the class action suit late can apply to have opted in if their case meets the requirements. This way the court is able to get a better idea of just how many people are negatively affected.

Each plaintiff can file their own individual case, but what if the case involves more than one victim? In this case, it would make the most sense to join them all into one class-action lawsuit because it works better for the defendants, the plaintiffs, and the court.

1. Class Actions Work Better for the Plaintiffs

Class actions only involve one set of witnesses, experts, documents, and issues, which makes it more efficient, less expensive, and easier for a single law firm to take one case rather than having several law firms attempt to take on multiple cases.

There often isn’t enough in damages to justify the expense and time to handle each individual case. A class-action suit offers victims a fair distribution of the damages whereas, with multiple lawsuits, only a couple of plaintiffs who win may get all of the assets or insurance proceeds from the defendant, which leaves little to no money for anyone else who wins their cases later.

2. Class Actions Work Better for the Courts

It’s more expensive to file multiple lawsuits than it is to file just one. With one lawsuit, there is only one courtroom and one judge, and it also means that court schedules won’t be clogged up with multiple cases.

3. Class Actions Keep the Playing Field Level

Financially, defendant corporations are better suited to defend one claim, but when claimants use The Eichholz Law Firm to file a class-action lawsuit, it becomes a fair dispute. If defendant corporations have to defend more than one claim, not only are they more likely to settle the class-action suit, but its misconduct will likely also change as well.

The lead plaintiff, or class representative, is the leader as well as the voice of the group. They are appointed by the court and play a more active role than the other members of the case. The rest of the class members will wait to see what the outcome of the case is.

Because the named party in the claim is the class representative, they have important responsibilities including:

• Hiring a lawyer
• Consulting with the lawyer throughout the entire legal process
• Representing the class fairly
• Serving as the face of the class-action lawsuit
• Deciding whether to take a settlement

The class representative, in return, is the only class member who may receive additional compensation after the trial concludes. The additional compensation he or she receives is determined by the court.

Class-action lawsuits must be “certified” in order for them to proceed in a court of law. The certification procedure has slight differences between different states’ rules and the federal system, but most states follow the guidelines outlined in the Federal Rules of Civil Procedure (FRCP) which state:

• If there are numerous potential plaintiffs, it is unrealistic to include them all in one lawsuit.
• Common questions of fact or law must be apparent across all cases (they are based on the same wrongdoing or problem).
• The named claimants, or class representatives, have the same claims as all of the other class members, and any defenses to them would either be the same or comparable.
• Each class representative will protect the class adequately and fairly. The law firm that’s representing the class will be placed under a microscope, especially with regard to how the attorneys will be paid.

Claimants who were affected by the defendant’s actions likely only suffered minor damage to their finances and they are often unaware of what happened. This is why a Notice of Class-Action is always mailed out to anyone who may have been impacted by the suit.

The notice identifies you as being part of the class of individuals who are involved in the lawsuit. You will also be bound by the resolution, no matter what it might be.

Although grouping cases together can be beneficial for both parties, it can also be detrimental. This is because every person that is included in the lawsuit is bound by the final decision of the court, regardless of the specific situation and any small differences between each individual case. Another negative aspect is that the final settlement is split between each individual party in the case, and a system is used to determine the percentage of the settlement that each person will receive based on their individual case. This could potentially mean that the person will receive less out of the settlement than if they were to file their lawsuit individually. However, each class action lawsuit will be different in its own way and this is by no means guaranteed.

Class action lawsuits are complicated and can take a long time to reach a verdict, however, they can be largely beneficial to the courts and the plaintiffs involved. Many people do not understand the intricacies of class action lawsuits, and may not even know if they qualify to opt into one that is already ongoing.