Updated
A California “class action” lawsuit is a legal action in which one or more plaintiffs sue as representatives of a group of people with similar claims. Liability is then determined by a judge who approves a legal remedy for all members.
Common types of these lawsuits that our California personal injury attorneys handle include (but are not limited to):
- Consumer fraud,
- Dangerous or defective products liability,
- Employment wage and hour law disputes,
- Civil rights violations,
- Securities violations,
- Valsartan lawsuits, and
- Immigration violations.
Below our California personal injury lawyers discuss:
- 1. What are class actions?
- 2. How do they get initiated in California?
- 3. What criteria does a California court use in certifying a class?
- 4. What is the procedure?
- 5. Can members “opt out”?
1. What are class actions?
It is a lawsuit that resolves a common issue of liability and/or damages affecting a large group of people. The primary legal authority in California is Code of Civil Procedure § 382 on “permissive joinder.” CCP 382 provides, in relevant part:
“[W]hen the question is one of a common or general interest, of many persons, or when the parties are numerous, and it is impracticable to bring them all before the court, one or more may sue or defend for the benefit of all.”
People can bring these types of lawsuits in many types of state law and federal law cases. Employment class actions often involve legal issues regarding unpaid wages, minimum wages, overtime wages, rest breaks, meal breaks, and similar grievances under California labor law and employment law. Other common reasons for class action suits include data breaches, false advertising, and other matters related to consumer protection.
2. How do they get initiated in California?
Any potential plaintiff can initiate the process in California. The first step is to file a lawsuit and move for certification.
The court then decides whether the proposed group meets the requirements for certification. At this point, the judge does not consider the underlying merits of the case. He or she only determines whether the claims should be tried under CCP 382.1
3. What criteria does a California court use in certifying a class?
To get a certification in California, the plaintiff must establish that there is “an ascertainable class” and a “well-defined community of interest among [] members.”2
“Community of interest” is determined by three factors:
- Predominant common questions of law or fact;
- Class representatives with claims or defenses typical of all the members of the class; and
- Representatives who can adequately represent all the members.
Plaintiffs must also establish that resolving the claims in this type of lawsuit would “provide substantial benefits” to both the courts and the litigants.3 This involves showing that this type of lawsuit is superior to alternative methods of resolving the dispute(s), including individual litigation.4
4. What is the procedure?
Once the class is certified, the case moves forward as a lawsuit.
The court will notify potential members of the case by mailing them legal notice of the claim (usually at the plaintiff’s expense).
The notice will explain what the case is about and the rights of each member.
5. Can members “opt out”?
Members usually have the right to “opt out” of class actions or proposed settlements in California. The opt-out procedure will be explained in the legal notice sent by the court.
A member who opts out retains the right to file an individual lawsuit. A member who does nothing will be bound by any settlement or decision in the lawsuit.
If the class action litigation is eventually resolved in the plaintiff’s favor (either by trial or settlement) the court will notify members how to make a claim for relief. In such a case, the defendant will usually be ordered to pay the plaintiffs’ fees and costs – including attorneys’ fees and court costs.
In California, the vast majority of these lawsuits end up being resolved by a class action settlement.5
Call our law firm for help.
If you have been the victim of a wrongful act in California, we invite you to contact our class action attorneys for a free consultation and legal advice.
Call us or fill out the form on this page. We have offices throughout the state including Los Angeles, San Francisco, San Diego, Riverside, and more.
We can also help you determine whether you have the grounds for class actions in Nevada or class actions in Colorado.
Legal references:
- Lindner vs. Thrifty Oil (2000) 23 Cal.4th 429.
- Sav-On Drug Stores v. Superior Court (2004) 34 Cal. 4th 319.
- Bell v. Farmers Ins. Exchange (2004) 115 Cal.App.4th 715.
- Daar v. Yellow Cab Co, (1967) 67 Cal. 2d 695; Vasquez v. Superior Court (1971) 4 Cal.3d 800.
- According to the February 2010 report Class Certification in California by the Judicial Council of California, Administrative Office of the Courts, “Eighty-nine percent of cases [] ended in settlement while only 15 percent of cases with no [] certification ended in settlement.”