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THE BASIC STRUCTURE OF A CLASS ACTION |
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"John Doe" check's his bills, investments, property, etc... and finds something wrong. He contacts the company who has made the mistake and asks them what they will do to correct the problem. He gets the run-around, "We'll look into it. It's not our fault. Someone will call you back." Frustrated, he talks to his neighbors, friends, etc... and finds out the same problem exists for them as well.
An attorney is hired and the company put on notice to correct the problem.
No response.
The attorney does some research and files a suit for one or more parties with the court. The attorney takes "depos" (depositions), etc... and asks that the court certify the case as a "class action" where all people in the same circumstances get redress. The court agrees and certifies the case.
Bingo!
We now have a class action lawsuit.
The court directs that notice be given to all parties having a similar claim for the duration of a particular time period. They are to be notified (generally by the defendents' attorneys) so that they may be informed and have input into the case. This is where all parties, including the person or persons who bring the claim, are treated equally. This means that all class members are supposed to have equal input, rights to any monies, remedies ordered by the court, and so forth.
There are often several notices mailed to class members over the course of the case. The first notice is to accomplish the above - plus the added purpose of giving a person the option to "opt-out" (not be a party in the case) and not be represented by the party who established this case and is issuing the notice.
If a party "opts out," they have no further standing in the case. They can forget the matter or bring an action on their own behalf.
Neither option gives them right to any damages won in the original case.
If a party does NOT "opt-out," they are generally deemed to be a party to the case, are bound by the settlement, and prohibited in taking any further action on the matter.
If you don't get notice and have no idea of what is going on ... too bad! The court normally is required to direct that the "best notice practical under the circumstances " be given (normally mail, sometimes publication). Again, if you don't receive or find the notice and the "opt-out" date passes ... again, too bad!
At this point, you're "in" and bound by the courts decision. The case proceeds, sometimes for years. If you never received notice, you'll more than likely never know about any monies or other remedies to which you may be entitled.
At some point in time, the parties will either reach an agreement, which is presented to the court for its approval as to fairness, etc..., or the case is tried and the judge renders a decision.
It should be noted that most cases are settled by agreement by the parties and approved as being fair and equitable by the court. There IS a little give-and-take on both sides. (I am omitting lots of motions, arguments, procedures, etc. for the sake of brevity).
If the judge renders a decision and the defendent (company) wins, it's over and the plantiffs (class members) are precluded from further action on the same complaint.
If the plantiffs win, then the judge asesses damages, orders the company to make restitution, and orders notice be given where claim to the "pot" can be made.
The "pot" can also be split according to a formula which the court decides.
It's over and justice is done. Either the company is proven blameless or the wrong is remedied, restitution made, and errors on the part of the company are never committed again.
At this point, please click on How It Really Works and get my "take" on the system.
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