Frequently Asked Questions About Class Actions
Here are answers to some frequently asked questions about class actions.
What is a class action?
A class action is a lawsuit brought by one or more persons on behalf of a larger group of people with similar claims. It can provide access to justice for persons whose individual claims may be too small to litigate on their own.
Can any case be brought as a class action?
No. For a matter to proceed as a class action, the proceeding must be certified under the Class Proceedings Act, 1992. A court will certify an action only where:
1. The pleadings must disclose a cause of action (There must be some legal basis for the claim).
2. There must be an identifiable class of two or more persons who can be represented by the representative plaintiff or defendant.
3. The claim must raise one or more issues that all class members have in common. That means if one class member wins, they all win.
4. A class proceeding must be the preferable procedure for the fair and efficient resolution of the common issues.
5. There must be a person who is willing to act as the representative plaintiff and to fairly and adequately represent the class members’ interests. That person must have a plan that sets out a workable method of advancing the class proceeding on behalf of the class and for notifying class members of the class proceeding. That person cannot have an interest that conflicts with the interests of other class members on the common issues.
Once certified, a class action proceeds much like any other lawsuit. The parties will exchange documents and examine each other’s witnesses. At trial, they will lead evidence and make arguments before a judge.
Do I have to participate in the class action?
People who are members of the class but who do not want to be part of the class action can “opt out”. They can either pursue their own individual lawsuits, or do nothing. Members of the class are notified of their option to opt out when they receive the notice that a class proceeding has been certified. If a class member does not opt out by completing the form provided within the time period provided, they are considered to be a member of the class. This means they are bound by any court decision for the class. If a class member does opt out, they will not be entitled to share in any damages if the class action succeeds.
How will legal fees and disbursements be paid?
Our legal fees are paid only if there is a successful recovery for the plaintiffs. In some cases, contributions may be requested from class members to cover the cost of such disbursements as expert reports, transcripts and filing fees. Such contributions, if requested, would not be large and would help the chance of success in the proceeding.