Class Action Cases In California

Class Actions in California can be brought either in state courts or in federal courts in California. Because federal courts are considered to be more favorable for defendants than state courts, many plaintiff attorneys fight hard to keep such cases in the state courts and a battle often ensues early on in a lawsuit before the judge as to whether the case must be removed to federal court or if it can remain in the state court where it was originally filed.

But what makes a good class action case in the first place and what does a plaintiff class action attorney look for in deciding whether or not to take on such a case? Class action cases can be extremely expensive to pursue. Therefore, when deciding whether or not to take on such a case is a daunting task for many law firms and each case must be examined from all angles at a very early stage to determine its likelihood of success.

Typically, a class action is filed with one or several named plaintiffs on behalf of a proposed class of plaintiffs. This proposed class will then consist of a number of individuals and/or entities who have something in common - that they have each been damaged, usually in a similar way, by a common defendant or by the actions or products of that common defendant.

Thus, in the interview of such a plaintiff who comes to the attorney with his damages, the questions center, to large extent, on how they were damaged, who damaged them, and how many others have similarly suffered such damages.

Damages can be in terms of money that was spent, lost or which was defrauded from the plaintiff. But damages can also be in terms of damage to the business or well-being of the plaintiff. An example might be where a plaintiff, like many others, has purchased a book or drug promising to be or contain a cure for cancer, male baldness or the secret to losing weight which in fact was not or did not contain such a secret or cure.

If the manner in which the harm was perpetrated was by means that are prohibited by other laws besides simply fraud, for instance, by price-fixing, then the class action can be combined with an antitrust action and increased damages can be sought in the complaint that is filed in court.

The next subject of inquiry for an attorney considering a class action case is the defendant involved. If the defendant is a penniless bankrupt company whose officers have already been convicted and sent to prison, to take a dire situation, there may be no value in pursuing such a case. Many clients don't understand why an attorney still won't take the case if the wrong was so blatant. However, clients need to understand that class action cases can take years of time and effort. And moral victories simply won't pay the bills or feed the cat.

Once a class action suit is filed, and once the battles have been waged over which court is the proper court for the case (which can routinely take months of hearings and hundreds of pounds of paper for the paperwork associated with such a battle), a motion must be made to certify the proposed class.

Other steps along the way, include convincing the court that the law firm or law firms involved have both the resources and the expertise in dealing with such a complex and time consuming lawsuit as a class action.

A class action case requires that notice describing the class action be sent, published or broadcast to class members. This expense may be incurred not only near the start of such a case, but again if there is a proposed settlement. Members of a class must be given the opportunity to opt out of the class.

In terms of what a court looks for in allowing or disallowing a class action to proceed forward, courts will generally look at whether 1) the class is large enough to make individual suits impractical, 2) if the class has legal or factual claims in common, 3) whether the claims or defenses of the class or the defendants are typical, 4) whether the representative named plaintiffs will adequately protect the interests of the class, 5) whether the common issues will predominate as opposed to individual fact-specific issues, and 6) if the class action is the best vehicle for resolving the disputes.

Because of the complexity of class actions and the resources required to pursue them, the attorney fees are similarly large. This is one of the primary criticisms of such cases as well. Class members, whose individual damages may be small, but whose combined damages may be huge, often receive little or no benefit in the end. Too many cases are settled with monetary settlements combined with discounts on future purchases, such that when divided up among the class, the individual class members feel there is little incentive to applying for their portion of the damage settlement or for a meaningless coupon to purchase additional products or services from a company they never wish to deal with again.

If you have a situation in which the practices of an entity are causing you or your business harm, or are favoring your competitors to your disadvantage, and you believe others have been similarly harmed or damaged, call your class action law suit lawyer