Class Action Flashcards
Class Action Overview
Under Rule 23 an individual or small group can represent a larger group (class) sharing a common interest in a lawsuit. Usually involves Ps as class. though Ds can form a class action Only representative class members must satisfy requirements for PJ, SMJ, and venue
Requirements (Class Action)
General requirements to certify a class:
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Class is:
- (1) Numerous class (impracticable to join all of them);
- (2) Common question of law and facts
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Named parties are:
- (3) typical; the claims of the representative is typical to the whole class
- (4) represent class adequately (no conflict of interests, and competency)
Numerosity requirement
Class size must be so numerous that joinder impracticable. No exact threshold as to class size requirement; depends on context of case and claims.
There is no threshold as to class size requirement, depends on context of case and claims
Commonality requirement
There must exist questions of law or fact common to the entire class
Typicality requirement
Claims or defenses of the class representatives are typical of those of the class
Adequacy requirement
Class representatives will fairly and adequately protect interests of the entire class. Represent must not have conflicts of interest with class members, class counsel must be competent.
Types of class action
- Rule 23(b)(1): Antiprejudicial device
- Rule 23(b)(2): Injunction or declaratory judgment. The relief is an injunction
- Rule 23(b)(3): Damages, the relief here is $$$
Explain class action type: R23(b)(1): Antiprejudicial device
Multiple actions could create inconsistent decisions, or a depletion of funds. (A class is formed to stop depletion of a fund)
Explain class-action type: R23(b)(2): Injunction or declaratory judgment
Class request an injunction or declaratory judgment as primary relief (not damages)
Explain class-action type: R23(b)(3): damages
- The most common. The common question is the most important question to all class And the class action is the best option to resolve
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Especial requirements:
- (1) Predominance: common issues predominate over individual questions (no great difference between the parties)
- (2) Superiority: class actions are superior to other individual actions to resolve the dispute
Rights of class members on damage class actions
- Notice: All members must know effects of opting out and their rights of appear with separate counsel
- Members can opt out and not be bound by the ruling.
Class Actions Fairness Act considerations?
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Class Actions Fairness Act: A non SMJ class action could obtain certification if 1) a class of more than 100 members and 2) with claims over 5 million.
- Not applicable to: a) class actions with fewer than 100 members; 2) derivative shareholder claims; 3) State securities law fraud claims
Class Actions and Jurisdiction Issues
- Personal Jurisdiction: Absent class members don’t require to have PJ, just the class representatives. Due process is satisfied in PJ if all class members receive adequate notice and opportunity to opt out
- SMJ: Same rules for individual cases, but applied to the class representatives
Opt-out rights in class actions
- Notice: All members must know the effects of opting out and their rights of appearing with separate counsel
- Members can opt-out and not be bound by the ruling.
- Judgment: Binding to all non-opt out parties
- Settlements: Needs to be approved by court. Court will see fairness, reasonability and adequacy. Court will seek feedback from absent class members in deciding on the settlement
Steps in Class ACtions analysis
- Check for initial requirements
- Define the class type
- Get a certification by a court
- If type 23(b)(3), then notify all class to opt out
- Opt out again if settlement or dismiss
