Class Action Lawsuits ? Individuals Against Corporations

Class action lawsuits give individuals the power to match up against corporations. Class actions can be really successful if there are a large group of class members who have all sustained a relatively small loss sustained as a result of corporate criminality. The legal costs for individual members to file separately would be high. And the heavy burden on the court system would be excessive. The purpose of class actions is to give a convenient and economic solution for mass tort lawsuits.

Class action lawsuits can be brought before the United States federal courts, as governed by Rule 23 of the Federal Rules of Civil Procedure, when the suit involves class members, with common issues, across state lines. They can also be brought before the federal court if the case is connected with federal law. Class action lawsuits can also be brought before state courts. Different states may have differences in civil law and so may need individual attention or through multi-district litigation. Federal courts are more hostile to class actions than their state counterparts.

The ?class? consists of the group that have incurred damage or have been wronged by a businesses illegal actions or products. Examples include faulty products such as medical device defects or antitrust and securities lawsuits.

To start a class-action suit, a group must first be first certified as a ?class? by the court. Before certifying the court will decide if there are a large number of plaintiffs that it would otherwise burden the court to try them individually. They must also decide whether this group has common issues and that the claims of the class members must be typical of those of the putative class. The group filing the class action must be adequately representing the class. If these criteria are successfully met then the class action can be certified. Upon certification all members are notified and have the opportunity to opt out. Usually only a few members of the class need be present at the trial. Upon conclusion any award will be divided up between all members of the class. Often these types of lawsuits are settled out of court. Class actions are rarely resolved quickly and can often take years to come to a conclusion.

The class action system is not without its detractors. The system is blamed for epidemic levels of litigation abuses in state courts. The detractors claim that juries and judges are in collusion and team up to award large settlements. The end result is an increase in consumer prices.

Class actions are a thorn in the side of large corporations. The help give the little guy a much needed voice. They also help reduce pressure on the legal system. However they do have their detractors who are against the systems and suggest that lawyers are the ones who are truly winning by abusing the system.

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* Government Statistics on Legal Verdicts and Jury Awards - $ U.S. district courts terminated approximately 512,000 civil cases during fiscal years 2002-03. Nearly 20% or 98,786 of these cases were torts in which plaintiffs claimed injury, loss, or damage from a defendant’s negligent or intentional acts. $ Of the 98,786 tort cases terminated in U.S. district courts in 2002-03, about 2% or 1,647 cases were decided by a bench or jury trial. $ An estimated 9 out of 10 tort trials involved personal injury issues C most frequently, product liability, motor vehicle (accident), marine, and medical malpractice cases. $ Juries decided about 71% of all tort cases brought to trial in U.S. district courts; judges adjudicated the remaining 29%. $ Plaintiffs won in 48% of tort trials terminated in U.S. district courts in 2002-03. Plaintiffs won less frequently in medical malpractice (37%) and product liability (34%) trials. $ Eighty-four percent of plaintiff winners received monetary damages with an estimated median award of $201,000. $ Plaintiffs won more often in bench (54%) than in jury (46%) tort trials. The estimated median damage awards were higher in jury ($244,000) than in bench ($150,000) tort trials. April 2006 - A Jury in New Jersey found last week that Vioxx significantly contributed to a 77-year-old man's heart attack awarded him $9 million in punitive damages yesterday, raising Merck & Co.'s liability in the case to $13.5 million and intensifying pressure on it to settle such lawsuits. Example of Personal Injury Case 2004 : Ford Explorer rollover-prone and roof not crash safe and worthy- CASE TYPE : Product Design Defect, Auto Truck Vehicle - SUV, Motor Vehicle – Rollover CASE : Buell-Wilson v. Ford Motor Co., San Diego Co., Calif., Super. Ct. GIC 800836 Los Angeles, Calif. JURY VERDICT: $369,000,000 (369 Millions Dolalrs 2005 - In what may be one of the biggest massive medical malpractice tort verdicts in the state of Texas, a state jury awarded $606 million - including a remarkable $ 600 million dollars in punitive damages - to the family of an 82-year-old patient who had cancer and then who died after receiving an overdose of chemotherapy drugs. 2005 - In the 9th big loss for Ford in SUV Explorer rollover cases, a Florida jury awarded $61.2 million to the parents of an 18-year-old boy who was killed in a 1997 (wrongful death & Product Defect and Product Liability Issues) Example of Personal Injury Lawyer Case 2004 : Dodge Caravan seatback collapsed on baby in a car-seat - CASE TYPE : Automobiles, Products Liability - Product Design Defect, Wrongful Death, Motor Vehicle - Rear-ender, Motor Vehicle - Passenger, Motor Vehicle - Minivan CASE : Flax v. DaimlerChrysler Corp., Davidson Co., Tenn., Cir. Ct. O2C-1288 JURY VERDICT : $105,500,000 (105 Million Dollars 2005 – Billion Dollar Verdicts - In one of 2005's largest verdicts to an individual plaintiff regarding financial fraud , a Florida jury ordered Morgan Stanley Broker Dealer to pay $1.45 billion to investor Ronald O. Perelman for defrauding him in the sale of his camping gear company - Coleman. 2005 - February, a prominent Houston law firm and a Texas bank were SMACKED and Beaten with a $65.5 million verdict in a highly complex estate planning case that involved major problems and conflicts of interest. (65 million dollar jury award) 2005 – 3 years after a jury acquitted a company in Florida of manslaughter and criminal charges, a Florida civil jury SLAMMED the outdoor advertiser with a $65 million jury award verdict for the shock and electrocution of a sixth-grade boy. Age Discrimination - In December, a Los Angeles California jury found that PrivatAir - an aviation company focusing on private airline services - wrongfully fired Captain Doyle D. Baker on the basis of his age, defaming him in the termination process and causing extreme emotional distress.

Punitive damages serve a number of important functions which—despite a few horror stories, which are themselves either apocryphal or overturned in the courts, the functions remain valid and in the public interest. Persons causing great harm—persons deliberately or with gross negligence causing great harm should not view paying damages as merely a cost of doing business, a cost that might fit neatly into a risk analysis of wrongdoing. That is what happened in the Ford Pinto case in which the cost of paying claims to victims of a known deadly hazard was deemed less than the cost to retool the assembly line, and thus the hazard was maintained knowing full well that further people—more people would be injured or killed. This is the purpose of punitive damages, to punish this kind of egregious wrongdoing, and to deter, to be a deterrent to such conduct. It is not immediately clear why a deterrent—or the necessity of the deterrent should bear any great relationship to the amount of actual damages in a given case. There is nothing wrong and indeed something highly desirable in maintaining this disincentive to wrongdoing in an appropriate relationship to the harm and the conduct of the tort-feasor. This trend has led one commentator to suggest that ''[p]unitive damages have replaced baseball as our national sport.'' Theodore B. Olson, Rule of Law: The Dangerous National Sport of Punitive Damages, Wall St. J., Oct. 5, 1994, at A17. See also Malcolm E. Wheeler, A Proposal for Further Common Law Development of the Use of Punitive Damages in Modern Products Liability Litigation, 40 Ala. L. Rev. 919, 919 (1989) (''Today, hardly a month goes by without a multimillion-dollar punitive damages verdict in a product liability case.'').