
FOR IMMEDIATE RELEASE
February 26, 2001
CONTACT: John Sullivan
PHONE: (916) 443-4900
SACRAMENTO - Class action lawsuits that produce big money for lawyers but little justice for the public would be curbed under a bill introduced by Senator Chuck Poochigian.
The bill would give the courts a chance to take a quick, close second look at the initial "certification" decision that determines whether a class action lawsuit can proceed. It would save the legal system the cost of dealing with complex though meritless lawsuits without denying important class action relief to anyone with a legitimate case.
Sponsored by the Civil Justice Association of California (CJAC), SB 1133 would allow either side in a case to obtain a Court of Appeal review of a trial court judge's class certification decision. A request for a review would have to be sought within 10 days of the trial court ruling.
"A process that gives a Court of Appeal a fresh look at a certification will ensure that justice is done, that this key initial step in a class action case is the correct one," said John H. Sullivan, Civil Justice Association president. "When the court says 'yes' on certification, a process is launched that can involve mailing notices to millions of consumers and the beginning of a trial where the costs and stakes are in the multi-millions of dollars. Right now, the certification decision cannot be reviewed until after that trial, usually years later."
Federal courts and at least 16 states allow for immediate review of certification rulings.
The certification decision hinges on whether claims are better suited for case-by-case trials or a single class-wide trial. This determination is based on factors such as how numerous the plaintiffs group is likely to be, whether the law and facts related to all plaintiffs are similar, and whether a class action approach is overall substantially more beneficial to both sides and to the courts than proceeding case-by-case.
The RAND Institute for Civil Justice in a comprehensive study published in 2000 ("Class Action Dilemmas: Pursuing Public Goals for Private Gain") observed an increase in class action litigation, noting that "the financial incentives that damage class actions provide to private attorneys tend to drive the frequency and variety of class action litigation upwards."
Senate Bill 1133 follows the theme of the Institute for Civil Justice recommendation that "outcomes could be substantially improved if more judges would supervise class action litigation more actively."
Enacting SB 1133 will send a clear message nationally that California is a state that wants class action lawsuits to be instruments of justice, not money machines, Sullivan said.
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