Class action: Difference between revisions
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A class action (or class-action lawsuit) is a type of civil lawsuit that allows a group of individuals (the "class") to make a unified, collective civil case against an entity<ref name=":0">https://www.investopedia.com/terms/c/classaction.asp</ref>. Rule 23 of the Federal Rules of Civil Procedure permits one or more parties to "sue or be sued as representative parties on behalf" of all those similarly situated<ref>https://charlestonlaw.libguides.com/c.php?g=1255231&p=9195720</ref>. | A class action (or class-action lawsuit) is a type of civil lawsuit that allows a group of individuals (the "class") to make a unified, collective civil case against an entity<ref name=":0">https://www.investopedia.com/terms/c/classaction.asp</ref>. Rule 23 of the Federal Rules of Civil Procedure permits one or more parties to "sue or be sued as representative parties on behalf" of all those similarly situated<ref name=":1">https://charlestonlaw.libguides.com/c.php?g=1255231&p=9195720</ref>. | ||
When a class action succeeds, the class receives compensation, and after legal fees, all members of the class receive a share of the compensation<ref name=":0" />. | When a class action succeeds, the class receives compensation, and after legal fees, all members of the class receive a share of the compensation<ref name=":0" />. | ||
Class actions originated in the US but are now recognised in some other jurisdictions, including Canada, the UK, and some European countries. | Class actions originated in the US but are now recognised in some other jurisdictions, including Canada, the UK, and some European countries. | ||
== Requirements == | |||
A class action must meet all requirements under Rule 23(a) to be legally valid. The four requirements are listed below<ref name=":1" />. | |||
=== Numerosity === | |||
<blockquote>(1) the class is so numerous that joinder of all members is impracticable"</blockquote/> | |||
Known as the "numerosity" requirement, this means that it would be not be manageable for the court to handle every claimant as a full legal participant in the suit. Numerosity is presumed at 40 or more claimants<ref>https://www.lexisnexis.com/community/insights/legal/practical-guidance-journal/b/pa/posts/class-action-rule-23-a-prerequisites-standards-chart-2d-cir</ref>. | |||
=== Commonality === | |||
<blockquote>(2) there are questions of law or fact common to the class</blockquote> | |||
Known as the "commonality" requirement. | |||
=== Typicality === | |||
<blockquote>(3) the claims or defenses of the representative parties are typical of the claims or defenses of the class</blockquote> | |||
Known as the "typicality" requirement. | |||
=== Adequacy of the representation === | |||
<blockquote>(4) the representative parties will fairly and adequately protect the interests of the class</blockquote> | |||
Known as the "adequacy of representation" requirement. | |||
== Importance for consumer rights == | == Importance for consumer rights == |