NCJ Number
47629
Date Published
1976
Length
13 pages
Annotation
THE CLASS ACTION SUIT IS A LEGAL DEVICE WHICH PERMITS INDIVIDUALS TO PROSECUTE, IN A SINGLE LAWSUIT, THE CLAIMS OF A GROUP OF SIMILARLY INJURED OTHERS. HOWEVER, THE COURTS AND STATES HAVE LIMITED ITS USE.
Abstract
IDEALLY, THE CLASS ACTION SUIT PERMITS A LEGAL RESPONSE TO THE WIDESPREAD INJURIES PERPETRATED BY MASS PRODUCTION AND MARKETING TECHNOLOGIES AND OFFERS MEANS OF CONFLICT RESOLUTION, VICTIM COMPENSATION, AND DETERRENCE. ONLY A FEW STATES ALLOW CONSUMERS TO SUE FOR DECEPTIVE ADVERTISING OR MERCHANDISE AND OTHER FORMS OF CONSUMER FRAUD AND/OR PROVIDE EFFECTIVE CLASS ACTION LEGISLATION THROUGH WHICH SUCH SUITS CAN BE PROSECUTED. FURTHER, THE U.S. SUPREME COURT HAS RULED THAT CLASS ACTIONS MAY NOT BE BROUGHT IN FEDERAL COURTS FOR VIOLATIONS OF STATE LAWS UNLESS EACH MEMBER OF THE CLASS CLAIMS DAMAGES OF AT LEAST $10,000. GIVEN THE SEVERELY LIMITED APPLICABILITY OF CLASS ACTION SUITS, THE CORPORATE OPPOSITION TO SUCH SUITS SEEMS OVERWROUGHT. CONTRARY TO CRITICS' CLAIMS, CLASS ACTION SUITS ARE NOT OVERBURDENING THE FEDERAL COURTS, NOR DO THEY PROVIDE UNDUE LEVERAGE FOR OUT-OF-COURT SETTLEMENT BY CORPORATIONS. IN PRACTICE, A NUMBER OF ADDITIONAL IMPEDIMENTS TO CLASS ACTION SUITS MAY EXIST. CORPORATIONS MAY ATTEMPT TO RENDER A CASE MOOT BY SETTLING OUT OF COURT WITH THE NAMED CLASS REPRESENTATIVES OR EXHAUST POTENTIAL LEGAL TECHNICALITIES IN ORDER TO INFLATE THE COST OF PROSECUTION BEYOND THE PLAINTIFFS' MEANS. DEFENSE COUNSEL MAY OPPOSE THE CONTINGENT FEE WHICH IS CRITICAL TO THE CLASS ACTION SUIT OR INSIST ON SEPARATE JURY TRIALS FOR EACH CLASS MEMBER'S DAMAGE CLAIM. JUDGES MAY HOLD THAT THE ULTIMATE CONSUMERS HAVE NO 'STANDING TO SUE' OR THE CASE MAY BE THROWN OUT ON THE BASIS OF THE COMMUNITY INTERESTS OR UNETHICAL SOLICITATION BY THE PROSECUTING ATTORNEY. PROCEDURAL REQUIREMENTS MAY ALSO BE RESORTED TO AS A MEANS FOR ABORTING A CLASS ACTION SUIT -- FOR INSTANCE, THE SUIT MAY SIMPLY BE DECLARED UNMANAGEABLE BECAUSE OF THE NUMBER OF POTENTIAL CLAIMANTS INVOLVED. SUCH RESTRICTIONS ALLOW VERY FEW HARMFUL BUSINESS PRACTICES TO BE REMEDIED BY CLASS ACTIONS SUITS, AND WORK TO THE ADVANTAGE OF THE PROPERTIED CLASSES WHO HAVE BEEN MEMBERS BUT WHO ARE ALSO INFLUENTIAL IN DEFINING LEGAL REMEDIES. FOR CLASS ACTION SUITS TO BECOME EFFECTIVE INSTRUMENTS OF JUSTICE WILL REQUIRE THAT A CLASS BE TREATED AS AN INDEPENDENT ENTITY FOR WHICH DAMAGES CAN BE COMPUTED AND AWARDED ON AN AGGREGATE BASIS, UNDER CIRCUMSTANCES SHOULD A LOSING DEFENDANT RETAIN ILLEGAL GAINS BECAUSE NOT ALL VICTIMS CAN BE COMPENSATED. A LIST OF 24 INJURIES, THEIR MAGNITUDE OF ANNUAL HARM, THE POTENTIAL DEFENDANTS, AND EXISTING LEGAL OBSTACLES TO CLASS ACTION SUITS FOR EACH TYPE OF INJURY IS ALSO PRESENTED. NOTES ARE PROVIDED. (JAP)