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Class Action Complaints-One Action, Many Parties

Class action complaints are cases in which a group of people, usually a large group, bring a collective lawsuit to court.  This type of lawsuit was developed in the United Sates and is still predominantly found in the United States. They can be brought in both federal and state courts depending on the details of the claim.  Federal jurisdiction prevails if the amount in question is more than $5 million or if the parties on either side are from different states.  It is generally accepted that federal cases seem to favor the defendant whereas state courts lean toward the plaintiff.  This is why the defendant in the case often pushes for the case to be heard in federal court.

Class action complaints seemed to have stemmed from Equity Rule 48 in 1833. This rule provided special circumstances for lawsuits with multiple individual parties.  Not long after, the Supreme Court gave its interpretation and allowed for absentee parties to be involved as well.  This rule was eventually replaces with another as part of a general restructuring of Equity Rules.  In 1966, a major transformation occurred that provided and opt out clause that binds all members of a class unless they specifically opt out of the case said one lawyer in Sacramento.

Class action complaints are advantageous in a variety of ways.  The inherent aggregation leads to a higher level of efficiency within the system. This, in turn, leads to a lower cost process. Repetition is also kept to a minimum when many are made into one.  In this way, any necessary interpretations of the law can be done once instead of multiple times.  Another advantage is the power of large amounts of money. One claim at a time would do little to deter wrongdoing.  This type of suit results in rulings that are likely to make far more of an impact even on a huge corporation.

Other advantages of class action complaints include making sure all plaintiffs receive some type of compensation rather than an “early bird gets the worm” type of situation.  This type of suit also avoids different rulings for different parties.  There are also some criticisms as well.  There is always the potential for abuse of the system. Also, claimants may receive little to no actual compensation for their claim. Court costs and attorney fees for such a large undertaking can easily and quickly drain the pot left for those actually harmed.