class actions

Question 1

what are class actions?

Answer 1

it is a group dispute where people join to commence a civil action. there is a lead plaintiff.

Question 2

what is needed for a class action?

Answer 2

• seven or more people
• claims relating to the same, or similar, circumstances
• the same issues needing to be decided

Question 3

what are costs for class actions?

Answer 3

• if the class action fails the lead plaintiff alone is responsible for the costs, if successful the group members share the damages
• litigation funders will often pay the cost of a failed class action

Question 4

what are the types of class actions?

Answer 4

• shareholder (investors): claims about being misrepresented about the state of the company
• natural disasters: loss or damage occured as a result of a natural disaster (e.g. bushfire)
• product liability: when consumers suffered loss or injury from a goods or service
• employee conditions: dispute underpayment or working conditions at a company

Question 5

what is the appropriateness of class actions?

Answer 5

• 7 or more people
• is there a litigation funder willing to pay for costs
• the size and nature of the claims