November 5 2018

Class Action Lawsuit: Frequently Asked Questions

 

You've heard the term "class action lawsuit" but maybe you aren't sure what this means and how it differs from a traditional lawsuit. High-profile class action lawsuits involving giant corporations tend to capture headlines across the United States. However, how do you know if your injury qualifies for a class action lawsuit?

Here are the answers to some frequently asked questions about class action lawsuits.

What is a Class Action Lawsuit?

Class actions lawsuits are a specialized type of litigation that involves several people who were injured by the same entity or entities. A single or small group of plaintiffs called a class representative is named in the suit. Judges consider several factors before determining if the class action lawsuit is valid, including:

 

  • Adequacy . The class representative must provide a fair and accurate representation of the other plaintiffs.
  • Numerosity . The court will determine if there are enough people to adequately prove the injury occurred.
  • Typicality. The class representative's claim must be typical of all other plaintiffs.
  • Commonality. All plaintiffs must share a common injury caused by the same party.

 

In Alabama, a class action lawsuit is filed in either state court or federal court. If filed in federal court, Rule 23 of the Federal Rules of Civil Procedure is followed.

What Are the Benefits of a Class Action Lawsuit?

Filing a lawsuit against a giant corporation, manufacturer, or your employer is expensive and one reason why some plaintiffs don't go forward with their case. Joining or starting a class action lawsuit is more cost-effective because you are pooling your financial resources with your fellow plaintiffs.

Here are some other benefits of class action lawsuits:

 

  • Efficiency . One judge hears the lawsuit of dozens or hundreds of plaintiffs, which saves the court, attorney, and victims time and money.
  • Strength in numbers . Several plaintiffs filing a single suit have more power and proof than a single victim.
  • Longer statute of limitation . The law provides more time for plaintiffs to join the lawsuit because of the scope and complexity of the case.

 

Filing a claim on your own places you at risk of receiving less compensation. If several plaintiffs file suit, and are given compensation before you, the defendant, might file for bankruptcy or not have the resources to pay your settlement.

What Are Common Types of Class Action Lawsuits?

There are several types of class action lawsuits, including:

 

  • Employment class action lawsuit. Workplace age, sex, or gender discrimination as well as unpaid wages or a hostile work environment are filed on behalf of several employees of the same company.
  • Product liability class action lawsuit . Injuries caused by defective products, such as a malfunctioning air bag or dangerous child's toy, fall into this category.
  • Consumer class action lawsuit . Consumer fraud occurs when a business falsely advertises a product or violates consumer protection laws.

 

Oil or chemical spills, water contamination, and toxic industrial runoff are grounds for environmental class action lawsuits.

What Are the Phases of a Class Action Lawsuit?

Contacting an experienced class action attorney is the first step to receiving compensation. The attorney files a complaint and asks the court to certify the case as a class action lawsuit. After the case meets the requirements to become a class action suit, the plaintiffs are notified, and the attorneys begins the discovery phase, which is where evidence is collected and disclosed.

The case will either be settled or go to trial. Any compensation awarded is then divided evenly among all the plaintiffs.

Filing a class action lawsuit is the best way to receive fair compensation in many instances. If you have any further questions, contact Wolfe, Jones, Wolfe, Hancock, Daniel & South, LLC.