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7.8
U3AOS2 - Class Actions
| Question | Answer |
|---|---|
| What is a class action? | A legal proceeding where a group of people with similar claims against the same party join together in one case; also called group or representative proceedings. |
| What are the three requirements for a class action to commence? | 1) 7 or more people have claims against the same person, 2) The claims relate to similar circumstances, 3) Common legal issues need to be decided. |
| Who is the lead plaintiff? | A person who represents the group in a class action and files the case under their name. |
| What responsibilities does the lead plaintiff have? | Covers litigation costs if the case fails (unless funded), ensures the case benefits all group members, and instructs the lawyers. |
| What are group members in a class action? | People in the group who do not actively participate or appear in court documents but are represented by the lead plaintiff. |
| Do group members have to actively join the class action? | No, they are automatically included unless they ‘opt out’ by notifying the court. |
| What happens if someone opts out of a class action? | They will not be bound by the outcome and may bring their own separate claim. |
| What is the role of the court in class actions? | To manage the case, approve settlements, and ensure they are fair and reasonable to group members. |
| Are most class actions decided in court trials? | No, most are resolved in mediation; if not, the court decides on liability and damages at trial. |
| What are litigation funders? | Third parties who pay legal costs in exchange for a share of any recovered amount. |
| What happens if a class action fails and there is no litigation funder? | The lead plaintiff may bear the entire cost of the proceedings. |
| What is a 'no win, no fee' agreement? | An arrangement where lawyers only charge fees if the case is successful, reducing risk for the lead plaintiff. |
| What is a group costs order? | An order allowing a law firm to charge fees as a percentage of any award or settlement, helping to fund class actions. |
| How do group costs orders help with access to justice? | They allow law firms to fund smaller claims without needing a litigation funder, improving access for individuals. |
| If a class action is successful, who pays for the costs? | The group shares the costs, which are deducted from any damages awarded. |
| What are examples of class action types? | Product liability, shareholder claims, employee underpayment, and natural disaster-related claims. |
| Why are class actions useful for small claims? | They allow small claims to be grouped together, making it more cost-effective to pursue justice. |
| When might class actions be inappropriate? | If one plaintiff has suffered much more than others or the claims are too small to justify the time and cost. |
| What are some strengths of class actions? | Improve access to justice, reduce legal costs, handle many similar claims efficiently, and support small claims. |
| How do class actions reduce court burden? | Courts handle multiple claims in one proceeding, saving time and resources. |
| Why are class actions convenient for group members? | Group members don’t have to actively participate or manage the case, making it easier for them. |
| How can class actions promote fairness? | They ensure consistent outcomes for people in similar situations and provide legal representation they may not afford alone. |
| What are weaknesses of class actions? | High cost burden on lead plaintiff if it fails, time-consuming for courts, and group members may get little communication or compensation. |
| Why is the lead plaintiff at risk? | If the case fails and there’s no funding, the lead plaintiff may be liable for all legal costs and adverse cost orders. |
| What are criticisms of litigation funders? | They can take a large cut of the settlement, leaving group members with less than their actual loss. |
| What is a downside of class action lawyers’ involvement? | Some fear they may ‘take advantage’ to gain higher fees than the group members receive. |
| What happens if multiple class actions are filed for the same issue? | It can increase the defendant’s costs and complicate the legal process. |
| Why might group members be unaware of the case? | Many do not get individual updates and may not know the action is underway, especially in large group cases. |
Created by:
nandistudies
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