We read about class actions almost everyday in the newspapers. The idea to gather together in order to sue big companies such as tobacco or food companies originates from the United States; however, as these lawsuits are increasingly successful, the phenomenon currently spreads into the whole occidental world. A class action lawsuit is the way used by several people (for instance, thousands of consumers), to have their rights acknowledged. In the American federal Courts, the principle of class action is given in the 23rd article of the Civil Federal Code. That means that the companies can be sued by persons who live in different States. The claim is made by one or several plaintiffs (whose names are known by the Court) in the name of an indistinct group of persons (which is called a putative class). These persons must have suffered a common injury. Usually, this injury is linked to an action made by a company or a default in a product.
[...] The consequences of the development of class actions on the western countries ‘legal systems. A. Critics Some lawyers can be tempted to earn a lot of money against the common good of the people. The injured people receive a ridiculously small damage little cheque or a coupon), when the lawyer earns thousands of dollars. It is called “coupon settlement”. Besides, the risk is to understand the class action as a to the big companies, which would prevent them to innovate. [...]
[...] The defendant can protest if the group is not really representative of the injury, and in this case, the Court can cancel the lawsuit. There are several conditions for a class action lawsuit to be launched: - The number of injured persons must be so big that it would be impossible to make individual claims - There must have common issues and common law facts - The petition must be specific to the group - The representatives of the group must properly stand for the group's right Another advantage of class actions is that the law system can be more effective: indeed there is one single trial instead of several little ones. [...]
[...] What is a class action? A class action lawsuit is the way used by several people (for instance, thousands of consumers), to have their rights acknowledged. In the American federal Courts, the principle of class action is given in the 23rd article of the Civil Federal Code. That means that the companies can be sued by persons who live in different States. The claim is made by one or several plaintiffs (whose names are known by the Court) in the name of an indistinct group of persons (which is called a putative class). [...]
[...] These lawyers are looking for every opportunity to sue a big company and to make a lot of money on the lawsuit. The defendant can be a tobacco, food or Weapons Company, but also an insurance company or even a gym club, it depends on the ambition of the lawyer. Richard Scruggs, who is well-known for his role in the big tobacco lawsuit, is now a model for all these lawyers. The idea is to benefit from the general discontent of the American society about the use of weapons or about “junk or anything else, in order to create a massive gathering against the wealthiest companies. [...]
[...] The success of the big tobacco lawsuit was not only based on a failure to warn claim, but on a fraud claim too. That is why the same strategy could not work with the big fat lawsuit. As a conclusion, the class action phenomenon can be considered as an opportunity or as a risk for consumers. It gives the American the chance to amass a fortune, and it is one of the biggest fears of big companies. Indicative bibliography You're Rights in a Class Action Suit by Margaret C. [...]
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