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 laywer.
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.