Representative Litigation

Definition and Purpose

A type of legal proceeding where a single person or small group of people represents the interests of a larger group (the "class") who have suffered similar harm. The goal is to resolve claims efficiently when many individuals have been affected by the same conduct, making individual suits impractical.

Certification Requirements

Before a case can proceed in this manner, it must be certified by a court. This typically requires meeting specific criteria:

• Numerosity: The class must be so large that individual joinder of all members is impractical.
• Commonality: There must be questions of law or fact common to the class.
• Typicality: The claims or defenses of the representative parties must be typical of the claims or defenses of the class.
• Adequacy: The representative parties must fairly and adequately protect the interests of the class.

Notice to the Class

Once a court certifies a case, notice is generally provided to potential class members. This notice informs them of their rights, including the option to opt out of the and pursue their own individual claims. The specific requirements for notice can vary depending on jurisdiction and the nature of the action.

Settlement and Judgment

Any settlement or judgment in a representative action is binding on all class members who did not opt out. Court approval is typically required for settlements to ensure they are fair, reasonable, and adequate for the class. The process of distributing settlement funds or other relief to class members is often complex and involves a court-appointed administrator.

Benefits and Drawbacks

Benefits

• Provides a mechanism for individuals with small claims to collectively seek redress.
• Promotes judicial efficiency by resolving numerous similar claims in a single proceeding.
• Can deter corporate misconduct by holding wrongdoers accountable for widespread harm.

Drawbacks

• Class members may have limited control over the litigation.
• Settlements may provide minimal individual recovery, while attorneys receive substantial fees.
• Opt-out deadlines can be confusing or missed.

Types of Claims Commonly Pursued

This type of litigation is frequently used in cases involving:

• Securities fraud
• Antitrust violations
• Consumer protection claims
• Employment discrimination
• Product liability

Legal Framework

In the United States, rules governing these actions are primarily found in Federal Rule of Civil Procedure 23 and corresponding state rules. These rules outline the procedures for certification, notice, settlement, and other aspects of actions.