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Classcollective Actions in The United States Overview 9
Classcollective Actions in The United States Overview 9
Classcollective Actions in The United States Overview 9
• The claims or defences of the representative parties are typical of the claims or defences of the class.
• The representative parties will fairly and adequately protect the interests of the class.
In addition, the representative claimant must also satisfy at least one of the following requirements imposed by Rule 23(b):
• The prosecution of separate actions could potentially establish inconsistent standards of conduct for the party opposing
the class, be dispositive of other class members’ claims, or substantially impair other class members’ ability to protect
their interests.
• Final injunctive or declarative relief is appropriate with respect to the class as a whole because the party opposing the
class acted on grounds generally applicable to the entire class.
• Common questions of law or fact predominate over issues affecting only individual members, and a class action is the
superior mechanism for fairly and efficiently resolving the controversy. In actions for monetary damages, this is the
most important requirement in the decision regarding whether a class action may proceed.
In summary, on the timetable described below (see Question 7), the court determines before trial whether named claimants
meet the requirements to maintain a class action. If so, the court “certifies” the class for trial, and the class action proceeds. If
claimants do not meet the requirements, the court will not certify the class. Then, unless the representative claimants (in the
face of potential estoppel) amend their class claims, redefine the scope of the class, substitute any inadequate named
representatives, or fix other defects to the court’s satisfaction, they will be left to pursue their claims individually.
In commercial class actions some claimants with large claims occasionally opt out to pursue their claims individually in an
attempt to maximise the value of their individual claims. They may ultimately recover more or less than those who participate
in the class.
If the court certifies the class, the court will set specific deadlines for the notification of absent claimants, and for absent
claimants to decide whether to opt out. The form and method of notice is subject to court approval. Notice is usually either
direct (for example, by mail) if that method is reasonably practicable, or by publication in various media. Notice via email is
becoming more common, and Rule 23(b)was amended in 2018 to make clear that notice via electronic means is permissible
so long as the selected method is “the best notice practicable under the circumstances”.
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