8: Class Actions

Class Actions

Introduction

• if a group of ppl all have claims against same party, may be able to come together to commence a civil action

How they work

Can be commenced if……..

• 7 or more ppl have claims

• claims relate to the same/ similar circumstances

• same issues need to be decided

• if applied can be commenced a person becomes the lead plaintiff, ppl apart are group members

Costs

• if class actions fail lead plaintiff, burdens the cost

• in some cases, a litigation funder (3rd party agrees the legal costs) may be prepped to fund class action. they do this for a percentage (20-40%) of any settlement or damages awarded & will ussually pay costs if actions fail (no win no fee)

Appropriateness

• whether there is 7 ppl

• whether 3rd party is funding

• whether someone is willing to be the lead plaintiff

• nature and size of claim ( smaller not suitable ussually)

• loss of each group member & if they are similar

Strengths and Weaknesses

Strengths

• ppl can pursue civil claims they may not be prepped for

• use of litagation funders & plaintiff law firms who are prepped to act on a ‘no win, no fee’ basis or recieve fee if successful, increases access to justice

• reduce costs of defendant

Weaknesses

• been a fear by some that class actions provide an opportunity for class actions lawyers to ‘take advantage’ of class actions

• lit funders have been critisised for taking lots of money

• something multiple class actions are commenced by different law firms in relation to the same issue which increases defendants costs