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Class Actions in British Columbia (view source)
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{{REVIEWEDPLS | reviewer = [https://emlawyers.ca/people/lawyers/jason-z-murray/ Jason Murray], Eyford Macaulay Shaw & Padmanabhan LLP|date= October 2017}} {{Dial-A-Law TOC|expanded = courts}} | {{REVIEWEDPLS | reviewer = [https://emlawyers.ca/people/lawyers/jason-z-murray/ Jason Murray], Eyford Macaulay Shaw & Padmanabhan LLP|date= October 2017}} {{Dial-A-Law TOC|expanded = courts}} | ||
It’s a familiar story: a business makes a defective product or does something that harms a group of people. Such a “mass wrong” can be met with a | It’s a familiar story: a business makes a defective product or does something that harms a group of people. Such a “mass wrong” can be met with a class action. | ||
== | ==What you should know== | ||
===A class action is brought by an individual acting on behalf of a larger group=== | ===A class action is brought by an individual acting on behalf of a larger group=== | ||
A class action is a lawsuit that groups people with a common claim together against the same defendant. Otherwise, all the claims would be separate lawsuits. Mass production and marketing of consumer goods and services mean that a single mistake or wrongful act at any stage of design, production or distribution can harm many people in a similar way. A class action is one response to these injuries or losses (also called '''mass wrongs'''). | A '''class action''' is a lawsuit that groups people with a common claim together against the same defendant. Otherwise, all the claims would be separate lawsuits. Mass production and marketing of consumer goods and services mean that a single mistake or wrongful act at any stage of design, production or distribution can harm many people in a similar way. A class action is one response to these injuries or losses (also called '''mass wrongs'''). | ||
Often, injured people won’t sue individually because the money they seek is less than their legal costs. And it’s often not practical for just one buyer of a defective product to sue a large business. But the total loss or damages suffered by many injured people or buyers may be very large. Class actions make lawsuits more affordable by allowing all the victims of a mass wrong to share the cost of a lawsuit. Class actions are mass-produced lawsuits for mass-produced wrongs. | Often, injured people won’t sue individually because the money they seek is less than their legal costs. And it’s often not practical for just one buyer of a defective product to sue a large business. But the total loss or damages suffered by many injured people or buyers may be very large. Class actions make lawsuits more affordable by allowing all the victims of a mass wrong to share the cost of a lawsuit. Class actions are mass-produced lawsuits for mass-produced wrongs. | ||
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The ''[http://canlii.ca/t/84g6 Class Proceedings Act]'' lets one person sue in BC Supreme Court for a group of people if they have similar claims against the same wrongdoer. The Federal Court of Canada also allows certain class actions involving federal law and the federal government. | The ''[http://canlii.ca/t/84g6 Class Proceedings Act]'' lets one person sue in BC Supreme Court for a group of people if they have similar claims against the same wrongdoer. The Federal Court of Canada also allows certain class actions involving federal law and the federal government. | ||
A person who has been hurt or suffered loss can apply to BC Supreme Court to be the '''representative plaintiff''' in a lawsuit for a group of people. The representative plaintiff must also ask the court to '''certify''' the lawsuit as a '''class proceeding'''. | A person who has been hurt or suffered loss can apply to BC Supreme Court to be the '''representative plaintiff''' in a lawsuit for a group of people. The representative plaintiff must also ask the court to '''certify''' the lawsuit as a '''class proceeding'''. | ||
Once the court certifies a lawsuit, it appoints the lawyer for the representative plaintiff as | Once the court certifies a lawsuit, it appoints the lawyer for the representative plaintiff as class counsel. This lawyer is then the lawyer for all the class members. | ||
A defendant in two or more cases can also ask the court to convert the cases into a class action. | A defendant in two or more cases can also ask the court to convert the cases into a class action. | ||
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===What a court needs to certify a class action=== | ===What a court needs to certify a class action=== | ||
The court must certify the lawsuit as a class action if the following five criteria are met: | The court must certify the lawsuit as a class action if the following five criteria are met: | ||
*The document the plaintiff files in court (called the “notice of claim”) shows a '''legally valid claim''' based on a mistake or wrongful act. | |||
*The court can identify two or more people as a '''class''', who are then the class members. The class is easily defined, so people can easily tell if they fit into the class. (In some cases, classes are again divided into subclasses.) | * The document the plaintiff files in court (called the “notice of claim”) shows a '''legally valid claim''' based on a mistake or wrongful act. | ||
*There are '''common issues''' in the claims of the class members. | * The court can identify two or more people as a '''class''', who are then the class members. The class is easily defined, so people can easily tell if they fit into the class. (In some cases, classes are again divided into subclasses.) | ||
*A class action is the best way to '''fairly and efficiently resolve''' the common issues. | * There are '''common issues''' in the claims of the class members. | ||
*There is a '''representative plaintiff''' — someone to represent all the members of the class. | * A class action is the best way to '''fairly and efficiently resolve''' the common issues. | ||
* There is a '''representative plaintiff''' — someone to represent all the members of the class. | |||
===A representative plaintiff must meet certain criteria=== | ===A representative plaintiff must meet certain criteria=== | ||
A representative plaintiff must: | A representative plaintiff must: | ||
*fairly represent the interests of the class members, | * fairly represent the interests of the class members, | ||
*have a plan to run the class action for the class members and notify them of the lawsuit, and | * have a plan to run the class action for the class members and notify them of the lawsuit, and | ||
*not have an interest that conflicts with interests of other class members on the common issues. | * not have an interest that conflicts with interests of other class members on the common issues. | ||
In almost all cases, the representative plaintiff must live in BC. If appropriate, the court will appoint a non-BC resident to represent a class of people who do not live in BC. | In almost all cases, the representative plaintiff must live in BC. If appropriate, the court will appoint a non-BC resident to represent a class of people who do not live in BC. | ||
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Non-residents must formally '''opt in''' to the class action, meaning they must choose to be part of it. That’s not true for BC residents — they are automatically in unless they '''opt out''' (as explained shortly). When the court certifies a class action, it will state how and by when non-residents can opt in to the class action. | Non-residents must formally '''opt in''' to the class action, meaning they must choose to be part of it. That’s not true for BC residents — they are automatically in unless they '''opt out''' (as explained shortly). When the court certifies a class action, it will state how and by when non-residents can opt in to the class action. | ||
====Advertising to find potential class members==== | ====Advertising to find potential class members==== | ||
People can advertise to find potential class members to start a class action. The law does not deal with advertising. But it’s usually not necessary because only two or more people are needed to form a class. Any advertising would have to be careful not to promise financial gain for joining the class action. | People can advertise to find potential class members to start a class action. The law does not deal with advertising. But it’s usually not necessary because only two or more people are needed to form a class. Any advertising would have to be careful not to promise financial gain for joining the class action. | ||
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===A judge supervises the class action for all class members=== | ===A judge supervises the class action for all class members=== | ||
Even if class members know about a class action, most of them probably won’t be in court. To protect them, a judge '''supervises''' every stage of the class action. The judge looks out for the best interests of the class as a whole, not just the representative plaintiff, to ensure both the process and results are fair. | Even if class members know about a class action, most of them probably won’t be in court. To protect them, a judge '''supervises''' every stage of the class action. The judge looks out for the best interests of the class as a whole, not just the representative plaintiff, to ensure both the process and results are fair. | ||
If the representative plaintiff '''settles''' the class action, the judge will ensure that a notice to class members is published and that the settlement is fair, reasonable and in the best interests of the class as a whole. That does not mean all class members get the same amount. Different members in different situations may receive different amounts. | If the representative plaintiff '''settles''' the class action, the judge will ensure that a notice to class members is published and that the settlement is fair, reasonable and in the best interests of the class as a whole. That does not mean all class members get the same amount. Different members in different situations may receive different amounts. | ||
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===How do people decide whether to start a class action?=== | ===How do people decide whether to start a class action?=== | ||
People who are thinking of using a class action should consider the following things: | People who are thinking of using a class action should consider the following things: | ||
*Has a class action dealing with the same issues already been started? | * Has a class action dealing with the same issues already been started? | ||
*Is a class action a fair and efficient way to resolve the common issues? | * Is a class action a fair and efficient way to resolve the common issues? | ||
*Are the common issues more important than the individual issues? | * Are the common issues more important than the individual issues? | ||
*Is a lawsuit the best way to resolve the claims? Has the defendant come up with other ways to compensate class members? | * Is a lawsuit the best way to resolve the claims? Has the defendant come up with other ways to compensate class members? | ||
*What type of lawsuit is best for the case — class action or individual? | * What type of lawsuit is best for the case — class action or individual? | ||
*Is a class action too complicated? | * Is a class action too complicated? | ||
For example, a class action is not appropriate if individual issues would overwhelm any benefit from settling the common issues. In these cases, there is a risk of long and complex individual trials after the common issues are settled. | For example, a class action is not appropriate if individual issues would overwhelm any benefit from settling the common issues. In these cases, there is a risk of long and complex individual trials after the common issues are settled. | ||
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===With more information=== | ===With more information=== | ||
The trend towards more frequent class actions will probably continue as every Canadian jurisdiction now has class action laws. The '''Canadian Bar Association''' offers a searchable '''National Class Action Database'''. It gives lawyers and the public easy access to court documents for class action lawsuits across the country. | The trend towards more frequent class actions will probably continue as every Canadian jurisdiction now has class action laws. The '''Canadian Bar Association''' offers a searchable '''National Class Action Database'''. It gives lawyers and the public easy access to court documents for class action lawsuits across the country. | ||
* [https://www.cba.org/Publications-Resources/Class-Action-Database Visit website] | |||
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