It’s not uncommon for the actions of a single company to negatively impact the lives of hundreds, if not thousands, of people. When this occurs, there are at least two courses of action those people can take. They can either pursue separate cases and join together in a Multidistrict Litigation (MDL), or they can pursue a single all-encompassing claim, having one lead plaintiff file a class action suit on behalf of all the injured parties. Each option has its benefits. It’s important to understand the difference between these two processes, so you can understand which one is appropriate in your case.
Basic Differences
Class action suits bind all parties (known as class members) into a single entity, so that the outcome of the trial or settlement determines the outcome for every single plaintiff. Once a person decides to be a class member, that person has limited opportunities to opt out and pursue an individual legal action independently – even if the class loses the case. MDLs, by contrast, maintain the division of plaintiffs throughout the process, so that even if the defendant offers a settlement, a claimant can opt out if he or she believes the amount is too low. In the end, MDLs are meant to expedite pretrial procedures for cases dealing with similar questions and facts.
Reasons for Joining a Class Action
There are several reasons a person might want to join a class action suit. For one, this type of lawsuit often involves a powerful defendant with lots of legal resources at its disposal. Thus, it can appear intimidating to file an individual claim against such a behemoth. This is especially true for plaintiffs with very little money, who can barely afford to hire an attorney in the first place and who therefore might be hesitant to seek compensation for minor injuries.
In many cases, a class action is appropriate when the injury is identical across the entire class of victims and it is financially impractical for each victim to pursue an individual claim. In most cases, the lead plaintiff and his attorneys will negotiate a global settlement to partially or fully compensate all class members.
Social Justice
Though it is true that each individual class member may not receive a huge sum of money, it is important to note that class actions are useful for remediating collective harm. Thus, by way of a class action suit, laws and regulations can be enforced and future injuries can be prevented. In this way, it might be said that class action lawsuits can be vehicles for social justice.
MDLs
However, in class actions, class members give up a certain amount of agency. As mentioned, plaintiffs give up their right to pursue further legal action and they don’t have access to their own lawyer. And when a settlement is finally reached, they may not obtain compensation that is proportional to their expenses. When a person’s injuries are severe and the associated expenses are high, it might be more beneficial to pursue a separate claim, possibly through an MDL if one is available for that particular claim.
Examples
It makes sense, for instance, that a person would want to join a class action suit after finding out their LG phone is defective. After all, this person just wants a new a phone, or money to buy a new phone. The expenses are limited and each plaintiff has been injured in a substantially similar manner. But when it comes to a lot of defective drug or medical device cases, it’s more likely that each person has experienced a different level of harm. In these cases, it makes more sense to pursue an individual claim. When there are a large number of similar claims with injuries of different severity, an MDL might be pursued, at which point your case can be informed by what happens in the others. In an MDL, each plaintiff can independently pursue remuneration for his or her particular injuries, without conceding power to the collective body of the class. This can help ensure that the plaintiff receives a sum of money adequate to his or her needs.
If you’ve been injured due to a defective drug or device, you may want to consult with a product liability attorney, who can help you choose the best path forward.
