Frequently Asked Questions
Why Do Courts Use Class Actions?
Courts use class actions for two main
reasons:
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Class Actions are Efficient - Class actions provide courts with a way to resolve many substantially similar lawsuits at the same time.
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Class Actions Allow Smaller Claims to be Brought - Many times a class action is the only way that a company will ever be stopped from a wrongful practice. If the claim is only a few dollars, sometimes a few thousand dollars, it is unlikely that a consumer will be able to find an attorney willing to take such a claim against a multi-million dollar corporation. But by using the class action litigation vehicle, every consumer’s claim is combined into a single action, giving the case a higher probability of achieving its "day in court."
Can a class action lawsuit ever settle?
Yes, like other forms of litigation, many class actions settle before ever going to trial. The only real difference is that any class action settlement must first be approved by the court. Normally, a notice of the settlement is mailed to all class members, informing them of the lawsuit, the settlement, and their rights. The court then holds a hearing to consider evidence on whether the settlement is fair to the members of the class.
How are attorneys compensated in a class action?
Most of the time, class action cases are filed under a contingency fee agreement, meaning the attorneys only get paid if there is a recovery for the client class. In class actions, no matter what arrangement is made with the individual plaintiff concerning fees, the court always holds a full hearing to approve the fees for the work done on behalf of the class. The fee approved by the court must be reasonable and normally reflects the uniqueness and difficulty of the work undertaken by the lawyers on behalf of the class, as well as the results obtained for the class. In many cases, the fee is expressed as a percentage or fraction of the recovery for the class.
Is it true that attorneys in class actions take most of the settlement?
Absolutely not! In any class action, the fee awarded to the attorneys must, by law, be approved by the court as reasonable. To determine the fee, the court holds a full hearing. Class members are notified and are free to attend.
I think I have a case and am probably not alone, how can I get involved in a class action?
If you have a claim that you believe would make a good class action, you should discuss it with an attorney. If you’d like to discuss your claim with this firm,
contact us.
