Legal Unit 3 AOS2- Class Actions

Question 1

Requirements

Answer 1

• 7+ people have claims against same defendant
• claims relate to same/similar/related persons
• same legal factual issues need to be decided in case

Question 2

Lead plaintiff (LP)

Answer 2

Holds cost liability for civil action
- If CA fails they have sole responsibility for civil action
- if CA succeeds they share costs of bringing proceedings with GM

Question 3

Group members (GM)

Answer 3

Aren’t active participants in case
- Don’t have to contribute any legal costs unless CA succeeds
- Don’t have to personally attend trial or give evidence (due to the fact that requirements are met)

Question 4

How do group members work

Answer 4

In opt in model, when CA is first lodged the court will require that all GM’s have right to physically opt out
- Person may do this so they aren’t bound by decision of CA & can pursue defendant in seperate legal proceedings (have sole cost liability)

Question 5

Common example of class actions

Answer 5

• Product liability/consumer law
• Medical negligence
• Employee/employer dispute

Question 6

Class action funding

Answer 6

Can cost $$$ so virtually impossible for regular person to be LP
- no win, no fee arrangements
- litigation funders
- group costs order

Question 7

No win, no fee arrangements

Answer 7

• LP pays no legal costs & if case is won then actual costs taken out by firm
• Uplift fee must be paid that recognises risk law firm took
• % taken out of each members damages by firm

Question 8

Litigation funders

Answer 8

• Third party company that agrees to pay legal costs in return for a & of any settlement/damages (generally 20-40%)
• 1/2 of CA’s funded this way

Question 9

Group costs order

Answer 9

• Party receives permission from courts that allow law firm to take % of settlement as payment at the end
• this type of funding is a mix of the previous 2

Question 10

When are class actions appropriate

Answer 10

• The requirements are met as this is more efficient for the court system, as only one case is lodged instead of a number
• GM’s would not be able or willing to fund the civil claim themselves
• Someone is willing and able to be a LP & represent the group

Question 11

When are class actions not appropriate

Answer 11

• The requirements are not met
• No-one is willing to be a LP and take on the costs liability, stress & inconvenience
• GM’s will end up with less compensation than if they pursued their case individually
• GM’s want greater decision-making control over the case
• A speedy resolution is sought as delays often occur due to complexity