Class-Action Lawsuits

A CLASS-ACTION LAWSUIT generally results when someone involved in a lawsuit against a particular company or group realizes that others are involved in similar cases. The major parties in a class-action lawsuit are the plaintiffs, the lawyers, the defendant(s), expert witnesses, and court officials. In class-action lawsuits, lawyers tend to be either idealists who believe in a cause, or ambitious professionals who smell big money. Payment to attorneys may be a percentage of the award or a separate amount established by judges who hear the cases. If a lawyer is dedicated to the case for whatever reason, she may even put up personal funds to finance the early stages of a lawsuit.

Most class-action lawsuits derive from intentional sales of products that can cause harm to users. The goal of the manufacturer is usually to amass huge profits, while the consumer is interested in products that are both safe and effective. In the early stages of a class-action lawsuit, the sides may be unevenly matched because a single lawyer for injured clients may go up against a team of corporate lawyers who represent the manufacturer. As more people come into the class-action lawsuit, the stakes become higher, and more lawyers may be brought on board.

In order for a lawsuit to be certified as class action, it must be proved that large numbers of plaintiffs have been affected and that the relevant damage occurred under the same circumstances. Once extensive claims have been established, it is assumed that it is more efficient to handle the cases together than to respond to claims that may be scattered among a number of separate jurisdictions or which might result in conflicting judgments. Time may also be a factor for seriously ill claimants, and classaction lawsuits tend to move through the courts more rapidly than do individual cases.

Amendments to the Federal Rules of Civil Procedure in 1966 established three mandatory classes and one voluntary class in class-action lawsuits. The mandatory classes include cases where: 1) separate actions might result in incompatible standards; 2) separate actions might be detrimental to the interests of the claimants; and 3) it is necessary to prevent piecemeal and/or contradictory remedies. Multi-district litigation (MDL) was set up to transfer a large number of geographically separated claimants to a single district. For example, victims or survivors of airplane crashes or hotel fires might be handled through MDL. The first three classes of lawsuits are mandatory and require that individual plaintiffs be bound by resulting judgments. The fourth class is optional, allowing an individual to opt of the class action.

Due to the enormous amount of media attention that has focused on a number of high-profile class-action lawsuits, such as those involving asbestos, Bendectin, the Dalkon Shield, and Agent Orange, consumers and unwitting victims have become more aware that joining forces with other plaintiffs gives a case more impact and increases the chance of proving manufacturer liability. Plaintiffs have also attempted to mandate government and/or manufacturer accountability through class-action lawsuits involving dioxin, nuclear waste disposal, and toxic landfills.

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