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A Class Action (also known as a representative proceeding) is a lawsuit brought on by one person or a group of people on behalf of a larger group of persons or entities who share similar claims. In Melbourne, Australia, the class action regime is governed by Part IVA of the Federal Court of Australia Act 1976 (Cth). The aim of a class action is to provide a fair, efficient, and economically viable mechanism for dealing with complex legal disputes that involve a significant number of persons affected by the same issue.
Persons facing issues that affect a large group of individuals or entities often require the expertise of a lawyer. You may need a lawyer if you believe you and a considerable group of people were harmed by the same product, service, or action. Lawyers can advice on the legitimacy of the case, gather evidence, file the lawsuit, represent the group in court, and negotiate a settlement. Smaller businesses may also need a lawyer if they are part of a class action lawsuit, either as a plaintiff or a defendant.
Class action in Australia, especially Melbourne, is governed by Part IVA of The Federal Court of Australia Act. This Act lays out the requirements for a class action, the representative party must have a claim that is 'in respect of, or arising out of, the same, similar or related circumstances and gives rise to a substantial common issue of law or fact.' The Act does not require an opt-in or opt-out provision. However, the court may enter judgement for or against all group members in relation to common questions. Lastly, it also has provisions dealing with discontinuance and settlement.
A common issue in a class action is one that is shared by all class members and is central to the resolution of all claims, such as whether a product was defective or a company made false statements.
A class action begins when a plaintiff files a lawsuit on behalf of a group of people who have suffered similar harm or loss. The court must then certify the case as a class action before it can proceed.
In Australia, you will automatically be considered a member of the class action if you fall within the description of the group members outlined in the statement of claim, and will not need to actively join.
Typically the legal costs of the representative plaintiff are paid from any damages awarded to the group. Sometimes, these costs are also paid by a litigation funder who agrees to pay the costs in return for a percentage of any damages awarded.
If a class action is successful, a court will order the defendant to pay damages to the group members. The amount each group member receives will depend on their individual circumstances and the group size.
The Federal Court of Australia website provides a wealth of resources related to class action law. Legal Aid Victoria also offers support and advice. The Law Institute of Victoria provides referrals for lawyers practising in class action law.
Persons requiring legal assistance in class action should first consult with a legal practitioner who specializes in the field. They can provide guidance on the merits and timeline of the case, potential costs involved, and, representation in court if required.
