Class Actions Flashcards
What is a class action?
Representative(s) (“Rep”) sues on behalf of class members.
What are the initial requirements for a class action?
CANT
a. Commonality: There is some question of law or fact in common to class;
b. Adequate: Rep will fairly and adequately represent class.
c. Numerosity: Too many class members for practicable joinder;
d. Typicality: Rep’s claims/defenses typical of those of the class;
What is the second step for a class action? What are the types?
Must fit the case within one of three types:
What are the 3 types?
Type 1 Prejudice
Type 2 Injuction or declaratory judgment
Type 3 Damages
Define type a type 1 class action
TYPE 1: “Prejudice” – class treatment necessary to avoid harm either to class members or to party opposing class. An example is many claimants to a fund. Individual suits might deplete the fund, leaving some without remedy
Define type a type 2 class action
TYPE 2: injunction or declaratory judgment (not damages) sought because class was treated alike by other party
Define a type 3 class action
TYPE 3: “Damages” – (1) common questions predominate over individual questions; AND (2) class action is the superior method to handle the dispute.
What is the third step of a class action suit?
The court must determine “at an early practicable time” whether to “certify” the case to proceed as a class action. If the court certifies the class, it must define the class and the class claims, issues, or defenses.
What must the court do if it certifies the case?
Appoint class counsel that fairly and adequately represent the interests of the class
In a type three case (like a mass tort) what must the court do additionally?
In the Type 3 class, the court must notify class members that they are in a class. This means individual notice (usually by mail) to all reasonably identifiable members.
Who pays for the notice in a type 3 class action case?
The representative
Who is bound by the class judgment?
All class members, except those who opt out of a Type 3 class action.
Can the parties dismiss or settle a certified class action?
Only with court approval.
What does the court do if they are considering settling or dismissing the case in all three types of class action suits?
And, in all three types of class action, the court gives notice to class members to get their feedback on whether the case should be settled or dismissed.
How do you assess diversity subject matter jurisdiction in a class action suit?
as long as the rep is diverse from all defendants, and as long as the rep’s claim exceeds $75,000, it’s OK.
