In this episode, attorney Michael Forrest of Mazow McCullough joins John Maher to explore the most common types of class action lawsuits, including data breaches, false advertising, and landlord-tenant disputes. Forrest explains how different types of class actions are handled depending on the legal statutes involved and highlights the responsibilities of a class representative. He discusses key factors individuals should consider before joining or filing a class action, such as the risk of buyout offers from defendants and the importance of representing the broader class. He also explains how courts evaluate certification requirements like numerosity and commonality, and how individual claims can still proceed outside of a class action if within the statute of limitations.
John Maher: Hi, I’m John Maher, and I’m here with Attorney Michael Forrest of the Law Office of Mazow McCullough. Today, we’re talking about types of class action lawsuits. Welcome, Michael.
Michael Forrest: Hi, how are you, John? Thanks for having me.
Most Common Types of Class Action Lawsuits
Maher: Yeah, good, thanks. Michael, what are some of the most common types of class action lawsuits that are filed today?
Forrest: So, in Massachusetts, primarily right now, we’re seeing a lot of data breaches filed, unfortunately. We’re also seeing a lot of false advertising claims, particularly with respect to food and beverages. And there’s also landlord-tenant class actions that you see. There’s a lot of landlord, particularly larger landlord facilities that are using leases that are all unlawful. So you do see a lot of those as well.
Are Different Types of Class Action Suits Handled Differently
Maher: Do class action lawsuits differ depending on the subject matter, things that you mentioned, like consumer fraud and employment discrimination, securities litigation? Are they handled differently either by you as an attorney or by the court system?
Forrest: So, they are. It depends on the type of action. So because there are many statutes that authorize these types of actions. So for example, in Massachusetts, we have a very strong Consumer Protection Act. That statute actually itself provides for a class action mechanism. In the employment world, there are mechanisms in both state and federal courts that enable to enforce statutes in either collective or class action.
And then in a regular case, there may be prerequisites as well. So, before you file a class action, depending on the type of case, you may have to file a demand letter beforehand and wait a period of time before you can actually move forward with the claim.
Key Factors to Consider when Thinking About A Class Action Suit
Maher: Okay. So, for a potential plaintiff, what are some of the key factors to consider when they’re determining whether or not a class action lawsuit is the right approach for their situation or whether or not they should go forward with an individual litigation?
Forrest: So oftentimes we see people who have spent time online. They may have a small infraction or a large infraction that occurs to them some sort of unlawful act. And oftentimes, people go online and they realize, “Hey, this hasn’t just happen to me. This has happened to thousands or hundreds of other people.” That’s often the time that they’ll come to us. At that point, there’s a decision to be made.
Oftentimes, the defendant will try to incentivize the putative class rep where this individual would go away. But there’s this idea that if you’re going to move forward, one of the things that you want to think about is, “Am I willing and ready to represent the interests of all these other people?” Because again, there may come a point where the defendant tries to buy you out, for example.
So, it requires this commitment to the class, this idea of trying to do justice, for example. And I think that those are some of the most important things because you’re entering into litigation, which means that you’re going to have other responsibilities for these people. So it’s an important thing to think about. Again, there’s nothing wrong with bringing an individual claim, but if it’s the type of thing where you think if class action is possible, I think these are the concerns and the things that you need to think about before you move forward.
Company Buyout vs Class Action
Maher: So, if the company that you’re going after tries to buy you out, like you said, they’re going to offer some sort of settlement to you, it might be a high number and you need to be sort of ready and willing to say, “No, I’m not going to accept that. I’m going to move forward because I’m representing all of these hundreds or thousands of other people that are in the class.” Is that how I’m understanding that?
Forrest: Correct, correct. And you’ll oftentimes see in the beginning of a case. For example, with those Consumer Protection Act claims, you do need to send a demand letter first, and the business has 30 days to respond. So, oftentimes what will happen is the response may include a large amount of money to try to get that individual to go away. And oftentimes that’s a decision to make. That’s an early decision in the case that do you take the large sum or do you continue forward for the remainder of the class.
Can Someone Sue Individually Outside of the Class Action Suit?
Maher: Is there anything preventing somebody if they don’t take part in a class action lawsuit from suing a company individually for a similar or the same issue later?
Forrest: No, as long as you’ve never released the claims against the business for that act, or if they haven’t been released through, say a larger action you were a part of as a member of a class. As long as that’s not the case, you still can always bring an individual claim.
Maher: Okay.
Forrest: I said, I should clarify that one thing. It also depends on the statute of limitations. So, you can bring that claim individually, but it would still have to be in the time period.
How Do Court Handle Class Action Suits?
Maher: Okay. How do courts handle the complexities of class certification in different types of class actions, especially when they’re considering issues like numerosity, commonality, typicality, and adequacy of representation?
Forrest: So, there’s no magic formula. Oftentimes you’ll see with numerosity, for example, the courts kind of wrestle with how many people is enough people to make a class. And there is no magic number. 42. People have said it’s kind of a number that the courts ruminate around. I’ve seen them very low in employment cases, as low as 6 or 7 individuals in an employment case against a small business. So, I don’t think in some instances there’s a roadmap.
One of the things that the courts really wrestle with presently is this idea of predominance and with the issue of individualized issues, ascertainability of damages and ascertainability of individual class members. So I think the courts really do wrestle with these things and it does affect how a class eventually gets certified.
Maher: All right, well that’s all really great information, Michael. Thanks again for speaking with me today.
Forrest: Thank you, John. Have a good day.
Maher: You too. And for more information, you can visit the Mazow McCullough website at helpinginjured.com or call (978)744-8000.
