What is a class action?
In a class action, one or more people sue on behalf of a class of people who have suffered similar injuries or harm. The people whose names actually appear in the complaint are called “class representatives.” Their claims must arise from facts or law common to the class members.

What function do class action lawsuits serve?
One person's damages alone may not be great enough to justify the expense of a lawsuit. In that situation, the wrongdoer could get away with wrongdoing or improper conduct. But if enough people have been injured in the same way, then the combined damages may be enough to justify holding the wrongdoer legally responsible for the harm caused. In addition to allowing individuals with small recoveries to get relief, combining claims into one lawsuit lessens the strain on the judicial system, preserves legal resources, and provides qualified legal counsel to those who could not otherwise afford legal representation.

What legal issues are raised by class actions?
The majority of class actions are filed to recover financial compensation. Where the money available to fully compensate all of the class members is inadequate, a class action can be filed to resolve disputes over such a "limited fund.” Occasionally, "declaratory judgment" class actions are filed asking for a decision from a court as to the rights and obligations of the parties. Finally, a class action may seek injunctive relief.

How do you know if you might have a class action lawsuit?
There are three legal principles that must be satisfied to bring a class action lawsuit:

• Numerosity – There must be so many potential plaintiffs that it is not practical that they each individually bring their claims.
• Commonality – There must be common facts or similar legal questions among the class members.
• Adequacy – The class representatives must be able to show that they will fairly represent the class by pursuing the interests of the class and not just their own interests.

Who can become a class member?
Every class action lawsuit defines a "class" of individuals or entities on whose behalf the lawsuit is brought. If the lawsuit meets the legal requirements of a class action, the class can be certified. Any person or entity that meets the court-approved definition is automatically a member of the class. However, any class member may “opt out” (decline to be considered a member of the class) if he or she wants to pursue another remedy or no remedy at all.

What are the obligations of class members?
Class members have no legal obligations other than to be truthful when filling out their claim forms. Class members are not responsible for paying any fees or costs associated with the lawsuit. Of course, class members may voluntarily offer information to the legal counsel representing the class in order to bolster the claims.

How are class members informed of their rights?
Once a case is allowed to proceed as a class action, the court sends a notice to all class members informing them of their rights. The best and most practicable method of notice is used, which is often an advertisement in a newspaper, a first-class mailing, or both. Internet websites may also serve as an additional means of notice information.

Can I be bound by a settlement or judgment of a class action?
Yes. All absent class members are generally bound by the judgment or settlement of a case providing that the court decides that the underlying legal proceedings were fair. Of course, if a person opted out, he or she is not bound and is free to bring a claim for damages individually. However, when a class action is for declaratory or injunctive relief, notice is not required to bind absent class members and the court may not allow a person to opt out.

If I have a claim, should I file my own lawsuit?
Filing your own lawsuit depends on the nature of the suit and your individual circumstances. Some class actions seek recovery for a large group of people; however, individual damages may be small. On the other hand, if a person has substantial damages and a serious claim, it may be worthwhile to go it alone. If you are unsure, consult a lawyer who can help you make the decision.

Who pays the lawyers in a class action lawsuit?
In most class action lawsuits, class members are represented by attorneys who are paid on a contingency fee basis. This means that the attorneys representing the class are not paid unless the lawsuit results in some significant benefit to the class. If the attorneys recover nothing for the class, then they are not rewarded for their efforts. If a recovery is obtained, the court must approve the application for payment and set the amount of legal fees. Class members and class representatives do not pay for any legal fees associated with the case. All of the costs of the case are incurred by the counsel representing the class and reimbursement of those costs is sought from the court after a recovery has been made.

For more information on class actions, contact Belt Law Firm, P.C. by filling out this form or by calling us toll free at 1-888-933-1514 for your Free Consultation.