About Class Actions

         A class action is a civil lawsuit (e.g., non-criminal) where a group or "class" of people sue for a common wrong. Under the rules of procedure, a class action lawsuit allows a representative plaintiff (i.e., one or a small number of plaintiffs) to sue on behalf of a class of persons (sometimes in the millions), where a similar wrong happened to all of the class members. Class actions generally involve two types of criteria: (1) common issues in dispute as to all members of the class; and (2) the persons being affected are so numerous that it would make it impractical to bring them all individually before the court. Typically, the damages suffered by the individual members are such that they could not afford to bring an individual lawsuit against a defendant for a wrong, so they joined together in the class and have enough damages to justify bringing the action. Class Counsel are typically compensated, if they prevail, on a contingency basis, i.e., they are awarded a percentage of any monies given to the class and do not get paid unless they prevail in a settlement or a trial.

         All class action settlements and/or attorneys' fees must be approved by the court. In addition, while the class action complaint can be filed as a class action, the court must rule on a motion to certify the case as a class action and must approve the counsel to represent the class. Strange & Carpenter has been approved numerous times in both federal and state courts throughout the country to serve as class counsel.

         Examples of class actions include claims by:

• consumers who purchased the same defective product or were harmed by unfair practices committed by one or several corporations
• investors who were victimized by fraud in connection with the sale of stocks and/or other securities
• homeowners and residences in neighborhoods affected by pollution from industrial plants · medicines that caused dangerous side affects in many people
• employees who are discriminated against due to age and/or race by one corporation

         Many other different types of class actions are possible depending on the wrong committed and the number of people. Under federal law, the rules governing class actions are found in Federal Rules of Civil Procedure 23. Different states have their own rules of civil procedure regarding class actions.

         Class actions are often started as a result of a complaint by one or a handful of persons. If you have been harmed by an unfair business activity or defective product, or would like to discuss potential actions, please feel free to contact Strange & Carpenter.

Class Actions Were Designed To Advance Several Important Public Policy Goals

         United States Supreme Court Justice William O. Douglas stated "The class action is one of the few legal remedies the small claimant has against those who command the status quo." Frequently, the class action is the sole means of persons to remedy injustices committed by powerful and multi-million dollar corporations and institutions. In many situations, each person within a large group may have suffered limited damages and the cost of individual lawsuits would be far greater than the value of the claim. These claims are added together in a class action lawsuit so that the total damages to the class would be quite large.

The Public View of Class Actions

         Organizations and large corporations seeking to undermine the ability of consumers and small and mid-size business owners who would otherwise be unprotected against corporate misconduct are increasingly publicizing the view that attorneys who prosecute or defend class actions are the beneficiaries in such a system. However, before any class action settlements may occur, notice of the settlement must be given to the class and all of those who wish to be heard to state their positions and/or objections about the settlement, including attorneys' fees, are given the chance to address the court.

Future Reading on Class Actions

         Historically and under modern jurisprudence, a class action is a nontraditional litigation procedure that permits a representative with typical claims to sue or defend on behalf of, and stand in judgment for, a class, "when the questions is of common or general interest to . . . persons . . . so numerous as to make it impracticable to bring them all before the court . . ." Equity Rule, 38, 33 Sup. Ct. xxix (1912). For an in depth legal analysis of class actions, see Newberg on Class Actions, 3rd Ed. § 1.01.

         Important Note: This summary of class actions is for informational purposes only and does not constitute legal advice. The purpose of this summary is to give lay persons a basic overview of class actions. This summary is not intended to create, and receipt does not create, an attorney-client relationship.