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Frequenly Asked Questions
What is a Class Action?
A class action is a powerful legal tool which allows ordinary people to join forces to fight injustice. Class actions are lawsuits in which one or more people sue on behalf of themselves and other people who have suffered a similar harm at the hands of the same defendant. Together, all the people with similar claims (except those who exclude themselves) are members of a “class” and their claims and rights are decided in a single court proceeding.
How does a class action work?
A class action starts as an ordinary civil lawsuit started by one or more persons on their own behalf. They then seek to include others by asking the Court to decide whether or not the lawsuit meets certain legal conditions to be “certified” as a class action. This certification process is typically the first major step in the lawsuit and often takes many months after the lawsuit is started.
If the Court decides to permit the lawsuit to proceed as a class action, it will decide who will be included in the group or “Class”, what the issues are that the class action will decide on their behalf, and the Court will appoint a person to act as the “representative plaintiff” for the others in the class.
The legislation governing class actions contains many safeguards to ensure that the rights of class members are protected. For example, it requires that class members be given notice of the class action and the right to exclude themselves. It also requires the Court to manage the way the class action is conducted to ensure that the interests of the class members are protected. For example, any settlement reached in a class action must be approved by the court as being fair, reasonable and in the best interests of class members.
Why should I participate in a class action?
All of the members of the class stand to benefit from a successful class action and they don’t have to deal with the expense and inconvenience of starting and prosecuting their own lawsuit.
If a class action is certified and you are a member of the class, you will be entitled to participate in the
case and obtain the benefit of any ruling by the Court on the common issues.
If the lawsuit is successful against any or all of the defendants, you will be entitled to recover compensation for the wrongdoing you suffered as a result of their conduct.
If the lawsuit is not successful against any of the defendants, you will not be able to recover compensation – but you will also not be responsible for any of the costs associated with the lawsuit.
What will it cost me to participate?
Individual class members are not personally liable to pay class counsel’s costs and fees for prosecuting the common issues in the class action. Class members are also not liable to pay any costs if the class action is not successful.
Class action lawyers usually work on a “contingency” fee basis, meaning they are only paid a fee (often a percentage of the amount paid to each person in the Class) if a settlement or court award is achieved. These agreements must be approved by the Court as fair and reasonable before the class action lawyer is paid out of the settlement or award.
How do I participate in a class action?
In Alberta, once a class action has been certified, all persons who fit the Class definition are automatically included in the class action, unless they choose to “opt out” by following the instructions the court gives on how to be excluded.
It is usually a good idea, however, to contact the lawyer in charge of the case and identify yourself. This information allows them to provide potential class members more direct notification of important developments in the case.
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