|
The answer depends on the nature of the suit and your circumstances. Some class actions seek recovery for a large group of people; however, individual damages may be small. If you have a huge amount of monetary damages, which are different from the other members of the Class then you may consider opting out. One should talk to a lawyer when making this decision. Cases, where the damages involved do not exceed several thousand dollars, may result in no recovery after those expenses and costs are deducted by your attorney due to the cost involved in litigating complex issues.
back to top
In a class action for money damages, lawyers who represent the class are generally paid out of the recovery, i.e., "common fund" they create for the plaintiff class.
In class actions involving declaratory judgments or injunctive relief, lawyers may be paid by the plaintiffs that hired them, or in some cases, by the defendants if the plaintiffs win.
Attorney fee awards are subject to court review and approval. Ordinarily, if an award is made in a common fund case, it will be awarded as a percentage of the fund created for the class. A benchmark award generally accepted by the courts is approximately 25% to 35% of the settlement; although the award may be adjusted higher or lower depending on the specific facts of a case.
back to top
No one person cheated out of a hundred dollars can find a lawyer to represent him or her. Conversely, several thousand people cheated out of a hundred dollars each have a powerful collective wrong that attracts qualified attorneys to put a stop to the practice.
In recent years, there has been a great deal of criticism of class action litigation in the news. Much of the criticism is unjustified. A majority of the criticism focuses on the fees lawyers receive for representing persons in a class action lawsuit. The most vocal opponents of class action litigation are insurance companies who are required to pay covered claims as a result of the litigation, or the wrongdoers involved in the underlying misconduct.
The truth of the matter is that the lawyers who represent a class will often recover in fees an award many times greater than the award received by any given class member; however, the total collective allocations to the class in a proper settlement are invariably many times the fee awarded to lawyers. Without a means to sue wrongdoers for cheating many people out of small sums, we would all be at the mercy of fraud and deceit.
Additionally, non-tangible benefits to the group can be substantial. For example, in this case the Plaintiff's lawsuit finally spurned ICANN to protect the public by terminating RegisterFly's accreditation.
back to top
First, the Complaint must get "served" on all of the defendants by the U.S. mail or a process server.
The defendants will usually file an answer denying the allegations made in the complaint. Alternatively, they may elect to challenge the complaint by filing certain motions challenging the lawsuit. If motions are filed, an answer will be required after the judge rules on the motions unless the case is dismissed.
After the answers are filed and any motions ruled on, a period of "discovery" will usually take place. Discovery involves the lawyers demanding documents from the other side, asking written questions, and taking depositions. Courts will hold a conference with the lawyers and set a timetable for preliminary discovery needed for certification to be completed.
The parties will begin confirming the evidence in a process called discovery. Each side can request documents, ask written and oral questions of witnesses and gather information from each other. Many company executives will be required to answer questions about the practices at RegisterFly, eNom and ICANN. The named plaintiffs will all be asked to answer questions and provide documents as well.
During the discovery phase, the defendants may file motions to challenge the legal sufficiency or underlying factual basis for the action. These are usually called motions for summary judgment. If a defendant wins, some or all of the plaintiffs' claims may be dismissed.
After the preliminary discovery is complete, the plaintiff will file motion to certify a class action. The defendants will file objections to certification. The Court will have a hearing. If plaintiffs win, the case proceeds to be certified as a Class Action.
Trial or Settlement. After final certification is granted, additional discovery may be needed before the case is tried. After that discovery is completed, the case is set for trial unless it settles. The trial of a class action procedurally is the same as for any other civil lawsuit.
back to top
|
