3.2.8 Class Actions Flashcards
define class action
Class action a legal proceeding
brought by one or numerous plaintiffs
acting for themselves as well as on
behalf of a wider group of people who
have a claim with similar facts.
what is three criterion of a class action
- 7 or more people claiming against the same defendant
-The claim must be in
respect of, or arise from,
the same, similar, or
related circumstances.
-The claim must give rise
to a common issue of law
or fact, meaning the same
issues are determined
by the court for all claims
define a lead plaintiff (u don’t need to rlly know this just helps )
Lead plaintiff an individual in a class
action who represents an entire group
of people who were allegedly harmed
by a defendant’s wrongdoing.
2 responsibilities of the lead plaintiff
assuming the risk and cost of the litigation on behalf of the entire group.
*
ensuring the claim serves the interests of the group members and is not pursued
solely for personal benefit.
what’s the financial impact of the class action fails
lead plaintiff is solely responsible for the costs of the
proceedings and any adverse costs orders.
when a law firm or litigation funder is involved, what happens when a class action fails
firms - they generally act on a ‘no win no fees’ basis
litigation - can often agree to pay costs if it fails
when is a class action appropriate
7 or more people who have a claim against the same defendant which arises out of the same or similar circumstances.
- a plaintiff law firm or litigation funder is prepared to fund the claim to avoid the lead plaintiff from having the burden of costs
- Whether there is someone willing and able to be the lead plaintiff
- The nature and size of the claims. For example, very small claims may not be economical (i.e. result in an outcome that is worth the effort and cost)
- all group members has suffered equally
What are three strengths of class actions in civil disputes?
ncreased access to justice: Group members share costs only if the claim is successful, allowing individuals who can’t afford to bring a claim on their own to still seek justice.
Efficiency: Courts save time and resources by hearing one representative case instead of many individual ones involving the same issue.
Cost-effectiveness: Small individual claims become worthwhile when combined, encouraging people to pursue justice for minor but valid grievances.
What are three weaknesses of class actions in civil disputes?
Risk to lead plaintiff: If the class action fails and there’s no litigation funder or fee agreement, the lead plaintiff may face significant financial loss (though this is rare).
Heavy court use: Despite avoiding multiple cases, large class actions can still drain court time and resources, especially during settlement approval.
Unequal benefit: Law firms may profit far more than individual group members, leading to concerns that lawyers benefit more than the plaintiffs they represent.
What are three ways class actions promote fairness?
Access to justice for minor claims: Individuals with small losses can seek justice through group action, allowing participation they couldn’t afford alone.
Skilled representation and process: Cases are usually run by experienced legal practitioners and overseen by impartial judges, helping ensure a fair process.
Availability of juries in Victoria: In the Supreme Court of Victoria, juries can be used, offering a decision by a fair, impartial cross-section of society.
What are three ways class actions may limit fairness?
Risk to lead plaintiff: The lead plaintiff bears the financial and legal risk for the whole group, which may be considered unfair.
Unfair settlements: If the settlement amount is lower than expected, group members may feel they weren’t adequately compensated.
No jury in Federal Court: If the class action is held in the Federal Court, juries are unavailable, removing a community-based decision-maker.
What are three ways class actions promote equality?
Litigation funding helps overcome financial barriers: If secured, it allows disadvantaged individuals to access legal action regardless of income.
Equal legal representation for group members: All group members benefit from the same legal team, reducing discrepancies in the quality of representation.
Uniform legal process: All group members follow the same legal process, which treats their claims consistently and equally in court.
What are three ways class actions may limit equality?
Access depends on funding: Without litigation funding, some individuals may not be able to bring or join a class action, disadvantaging poorer parties.
Unequal burden on the lead plaintiff: Only the lead plaintiff carries the risk and responsibility, while others benefit without contributing equally.
Potential power imbalance in outcomes: The lead plaintiff may have more say in decision-making (e.g., settlement agreements), giving them more influence than other group members.
What are three ways class actions promote access to justice?
Affordable participation: People who cannot afford individual legal action can join a class action, giving them access they otherwise wouldn’t have.
Efficient court process: Combining similar claims reduces court congestion and delays, helping others access the courts more quickly.
Litigation funding support: Third-party funding enables actions to proceed when individuals lack financial resources, expanding access.
What are three ways class actions may limit access to justice?
Unequal compensation: Group members may receive less than expected due to a large portion going to funders or legal fees.
Delayed outcomes: Class actions can take years to resolve, slowing access to compensation or justice.
Limited understanding by group members: Non-lead plaintiffs may not fully understand the legal process, reducing meaningful participation.
