When most people hear a term like "class action law suit" they may automatically assume that eventually their case will be held in front of a jury, or at least a judge, in a courtroom and that at the end of the case, they will get their verdict and that will be that.
The truth of the matter is a bit different – most cases end in class action settlements. Just about everyone in a class action lawsuit is motivated to settle the case and disperse compensation and close it out. Justice is not as much the name of the day as expedient completion. This is not always the case – if the lead plaintiff is determined to see a different outcome, regardless of time and if they have the right class action lawyer, a well publicized and lengthy trial may be more beneficial than a settlement.
In most cases though – the resolution is more about money than anything else – which is why class action settlements occur so frequently. The plaintiffs have already lost something, whether it is stocks, securities, business interest, and cash or if they have incurred pain and suffering. Many plaintiffs bring the suit because they want compensation – they want back what they have lost.
The defendant in a class action lawsuit typically wants the lawsuit to go away. Whether they are liable or not, a lengthy lawsuit can cost more money, in actual dollars and in potential dollars lost from poor public relations, than defending their innocence is worth. A company who has caused pain and suffering or defrauded their clients clearly has interest in settling and avoiding bad press as much as possible.
The lawyers on both sides are both motivated to clear up the matter as quickly as possible. The defendant’s lawyer wants to achieve his or her client’s desired outcome as quickly as possible and the class action lawyer is motivated to collect his paycheck which will be derived from the judgment or from any settlement.
Finally, the court is motivated to see settlements. Their primary motivation is to clear their dockets and achieve resolution. In the collective mind of the court, the fewer lawsuits that make it into the courtroom, the less work for courts, and therefore, the better.
This is why class action settlements, mediation and alternative class action lawsuit resolutions are popular. Everyone’s needs are met – the plaintiffs get compensation, the defendant admits some culpability but avoids bad press and further litigation, the class action lawyers get paid and the courts are not bogged down. Whether or not this is the best resolution, in terms of the checks and balances of society, is a matter of debate. Perhaps cases need to get to court more often to ensure that big business is not getting out of control and to help quell the tide of a litigious society – but perhaps not.
Either way, if you are considering joining or starting a class action lawsuit, you should consider the possibility of a class action settlement as an option. It’s quite likely to be suggested and you and your lawyer should do the math and assess what figures seem reasonable so that you can properly negotiate the right terms.