You And the Law Articles

Class Action Lawsuits

What do customers exposed to Hepatitis A after eating food from Capers in Vancouver have in common with women with silicone breast implants and arthritis sufferers who no longer take Vioxx since the medication’s recall? All are or have been claimants in a class action lawsuit.

A class action is a lawsuit that involves two or more claimants who have suffered similiar injury or loss caused by the same company or entities. Class actions allow people to collectively sue as a group for compensation, when individually they couldn’t afford to do so. If 500 people each have a similiar claim against a large company for, say $2,000 each, the cost and expense of going to court on separate claims probably wouldn’t be worthwhile. But a collective claim for $1 million is another story.

To proceed as a class action, the BC Supreme Court must first certify the lawsuit. What the court must decide is whether the key issues in dispute are common to or shared by a particular group or "class" of people, so that class action is the preferred way to go. The court will consider whether there’s a lawful claim, whether there’s an identifiable class of affected people, and whether a class action is the most practical procedure for the fair and efficient resolution of the common issues.

The other thing the court must do is appoint a "representative plaintiff" to represent the class members. Usually, this person is chosen before going to court before being formally appointed, and their claim is broadly representative or typical of the claims of the other class members. The representative plaintiff works with the lawyers pursuing the class action and must attend court hearings and other particular proceedings.

A class action doesn’t have to go to trial – like many lawsuits, it can be settled or resolved before a trial. One of the first class actions in BC was pursued by homeowners living along a river in the Lower Mainland who suffered flood damage to their properties. They claimed that the municipality and the dam operators didn’t take reasonable steps to prevent the flooding or warn downstream residents about the possibility of flooding. The case was settled shortly before trial.

This case is a good example of the advantages of a class action. Most of the payments for individual homeowners were under $10,000, so it’s unlikely that any individual homeowner could have afforded to sue. Also, the defendants in class actions are often major companies or other large organization, such as the municipality and dam owners in this case. This type of lawsuit makes it possible for "big business" and major organizations to be held accountable for any wrongdoing they cause.

If you think you belong to a defined class in a class action that’s already been certified and you reside in BC, then you’re automatically "deemed" to be a part of the class action. But you have to contact the lawyers pursuing the claim as soon as possible. If you’ve suffered an injury or loss and think other people have suffered similiar problems, then a class action may make sense for you and you should contact your lawyer.

This law column was written by Janice Mucalov, LL.B.,* with the assistance of PIHL & ASSOCIATES LAW CORPORATION. A version of this column was published in the Kelowna Daily Courier. The column provides information only and must not be relied on for legal advice. Please contact PIHL & ASSOCIATES LAW CORPORATION for legal advice concerning your particular case.

 

*Lawyer Janice Mucalov has authored several popular law books and writes about legal affairs for a variety of publications. "You and the Law" is a registered trade-mark. © by Janice Mucalov.