What is a Class Action Lawsuit? 

Most people have heard the phrase “Class Action”, but most people may not know what that means.  Class Action Lawsuits give an injured person the ability to team up with other injured people against a large corporation or defendant.  Most of the time, when suing individually, a plaintiff has small monetary damages, but together, a group (i.e., a class) has larger damages.  Usually, the benefit is a savings in the cost to litigate against a much wealthier company or defendant with the means to make an individual lawsuit cost prohibitive—a Class Action can help equal the playing field!   

Class Action Lawsuits are mainly brought as a consumer class actions (i.e., goods or services related matters), but class actions may be brought for any breach of duty, tort, constitutional matter, employment matter, securities matter, or any shared violation or harm a class may have against a common defendant(s).  In some cases, the damages from being overbilled individually is a few cents or dollars, but collectively, it equals thousands or millions of dollars.  In other cases, the harm is your constitutional rights being violated where it is not just you but a large amount of people being violated by a company or the government.  A pop-culture reference for Class Actions is the movie, Erin Brockovich.  This movie concerns a tort (i.e. the poisoning of groundwater) committed by a large company, PG&E, in the small California town of Hinkely.  A class of 634 plaintiffs filed a class action against PG&E and it ultimately settled for $333 million.  Even though it’s a movie that creates drama for entertainment effect, it helps illustrate how a class of injured people can come together to hold a large company accountable for the harm it did.  Remember, a Class Action can help equal the playing field! 

How a Class Action is typically defined:

Class action is a type of lawsuit where several persons (known as “class representatives” or “named plaintiffs”) sue on behalf of themselves and a larger group of people (“the class” or “class members”). The subject matter of class action lawsuits varies, but a couple of factors are nearly always present:

1. All members of the class have common issues in dispute; and
2. The people affected by the issue are so numerous that it is impracticable to bring them all before the court separately.

Class actions may be initiated in state or federal court and classes may consist of members in one state or span several states. Overall, class action lawsuits seek to protect rights of all members of the class.

 Advantages of Class Actions:

Beyond protecting rights, class action lawsuits have several distinct advantages. These include the following:

1. Lowers litigation costs since it helps individuals who have small claims that would otherwise be expensive to litigate separately
2. Individuals who otherwise have claims that are too small to warrant an individual suit can join in a class action
3. Helps level the playing field since it strengthens the negotiation position of plaintiffs against large corporations or defendants, and 
4. Relieves the burden on courts in having to adjudicate multiple court actions and it avoids inconsistent judgments

How A Class Is Certified:

In order to proceed with any class action lawsuit, a court must “certify” your class. In Florida, under Rule 1.220 of the Florida Rules of Civil Procedure, there are four primary requirements to certify your class:

1. Numerosity: Under Rule 1.220(a)(1), a class must be “so numerous that separate joinder of each member is impracticable.” This simply means a proponent must show that joining all class members would be extremely difficult or inconvenient. However, a proponent does not necessarily need to identify each member of the class from the outset. Florida courts have held classes as small as 25 members would fulfill the numerosity requirement.
2. Commonality: Claims of the potential representative parties “must raise questions of law or fact common to the questions of law or fact raised by the claim of each member of the potential class.” Florida courts have found this requirement can be fulfilled if all members have a genuine common single issue.
3. Typicality: The facts and circumstances that make up the claim or defense advanced by the representative party is typical of the claim or defense of each member of the proposed class.
4. Adequacy of Representation: The representative parties must “fairly and adequately protect and represent the interests of each member of the class.”

Beyond these requirements, Rule 1.220 requires that the court must find that the proposed class falls into one of three categories:

1. Limited Fund/Inconsistent Standard: Where there are limited funds from which a class member may recover or where courts may apply inconsistent standards for individual claims;
2. Injunctive Relief: Where 1) “the party opposing the class has acted or refused to act on grounds generally applicable to all the members of the class” and 2) the representative plaintiff is seeking “final injunctive or declaratory relief.”
3. Common Predominance: Where the questions of law or fact common to the class predominate over any questions affecting individual members of the class.

How a Lawyer is Paid for Class Action Lawsuits:

Generally, when Middagh Law, P.L.L.C. agrees to take and file a Class Action Lawsuit, we will advance all of the costs required to file and litigate the case.  In most cases, we take the case on a contingency fee basis.  Also, if the lawsuit is successful, we petition the court to award attorney's fees and reimburse out-of-pocket costs.  If the case is unsuccessful, we absorb the loss of our fees and costs.  

Remember, Class Action Lawsuits help level the playing field.  Some people may not even realize they have a class action matter.  If you believe you have been wronged in a way that may warrant a class action lawsuit, Middagh Law, P.L.L.C. can help you evaluate the merits of your case, help build your proposed class and ensure the class meets the requirements under the law.  Contact us today for a free consultation by calling (786) 395-1148 or emailing richard@middaghlaw.com.