CLASS AND COLLECTIVE ACTIONS
A class action is a special type of lawsuit that exists under both federal and state rules of civil procedure. It allows a litigant to commence a lawsuit on an individual basis or on behalf of other people who have suffered similar wrongdoing. These lawsuits are known as class or collective actions, depending on how the litigant group is formed. The individual starting the lawsuit is called the class representative and the group that he is representing is called the class. Class members do not participate in the lawsuit but instead are bound by the decisions of the representative and receive a share of the proceeds if the case is resolved successfully.
Class actions are most appropriate when the cost of litigation outweighs the value of each potential claim—in essence, class members pool their claims together to obtain a cost-effective resolution. For a court to allow a case to proceed as a class action, the following requirements must be satisfied:
- Numerosity – The number of injured individuals must be large enough so that it would be impractical for each person to participate directly in the lawsuit as a named plaintiff.
- Commonality – The facts and legal issues presented by each class member’s claim must be substantially similar.
- Typicality – The class representative who is prosecuting the claim on behalf of the class must have individual claims that are typical of the class.
- Adequacy – The court must be satisfied that the class representative and their legal counsel are prepared to pursue the case diligently and competently on behalf of the entire class.
A collective action shares many similarities with a class action. The main difference between the two actions is that in a class action, a class of individuals is defined the by court. Once the court decides who the class members are, those individuals are a part of the class unless they “opt out”. Conversely, in a collective action, once the court decides who the members are, those potential members must “opt in” if they want to be a part of the collective. Procedures for opting in and opting out are mailed to all potential class and collective members.
Pursuing and administering class and collective actions is a complex and demanding process that requires both experience and resources. McKinley Onua has experience with class and collective actions and will utilize this valuable legal tool whenever it is in the clients’ best interests. We will work diligently to recover the best results for both our clients and the class or collective members.
