U.S. Chamber of Commerce link
HomeInternational

Safeguards Against Abuse

While creating a collective action system is inherently risky, there are safeguards that can decrease the likelihood that it will cause the same problems as class actions did in the U.S. While ILR encourages policymakers to rely on alternative dispute resolution and other less volatile mechanisms to increase access to justice, it strongly recommends the adoption of critical safeguards in any country where collective redress through litigation is already an established right. Among others, the safeguards include:

While creating a collective action system is inherently risky, there are safeguards that can decrease the likelihood that it will cause the same problems as class actions did in the U.S. While ILR encourages policymakers to rely on alternative dispute resolution and other less volatile mechanisms to increase access to justice, it strongly recommends the adoption of critical safeguards in any country where collective redress through litigation is already an established right. Among others, the safeguards include:

  • Loser Pays
  • Restrictions on Standing
  • Class Certification processes
  • Fairness in Class Action Settlements
  • Reasonable Legal Fees
  • Opt-in process
  • Reasonable Damages

Read ILR’s paper Globalisation of Class Actions: Safeguards to Curb Litigation Abuse for details.

 

Issue Resources: Safeguards Against Abuse

"Opt-In" vs. "Opt-Out" - Verfahren in Sammelklagen (German)

Source: Institute for Legal Reform | Released: Jul 28, 2010
Download Now

'Opt-In' vs. 'Opt-Out' Procedures in Collective and Representative Litigation

Opt-In vs. Opt-Out Procedures in Collective and Representative LitigationOne of the most significant safeguards against lawsuit abuse in collective litigation is the adoption of an “opt-in,” rather than an “opt-out” procedure. It remains to be determined which of these two procedures EU policymakers will select as part of any collective redress regime. In this paper, ILR discusses the key differences between the opt-in and opt-out procedures, and explains why – if the EU adopts any collective redress procedures – an opt-in mechanism would be better for European consumers, better for European businesses and better for the administration of civil justice in the European Union.

Source: Institute for Legal Reform
Released: Jul 28, 2010
Download Now

The Globalisation of Class Actions: Safeguards to Curb Litigation Abuse

The Globalisation of Class ActionsIn recent years, there has been a pronounced trend at both the European Union and Member State level toward adopting class action rules and other aggregate litigation devices. Class action proponents have argued that such mechanisms will promote judicial economy and ensure that injured parties have an effective means of obtaining redress. Although these advocates for class actions recognise that the class action device has been subject to significant abuse in the United States, they generally dismiss the prospect of similar abuse occurring in Europe. Such a potential future, however, needs to be taken seriously – the U.S. experience with class actions demonstrates how such mechanisms can be easily exploited when there are no structural safeguards against misuse.

Source: Institute for Legal Reform
Released: Aug 01, 2008
Download Now

By Region

East Asia & the Pacific

STAY INFORMED!

System default for subscribers email address
Prefix (std)
First Name
Middle Name (std)
Last Name
Suffix (std)
Title
Organization
Number, Street, etc...
Apt Number, Office Building, etc...
Phone Number
Fax Number
Mobile Phone
Birthday
Sex
Preferred Issues
Preferred States
Daily/Weekly
System default for subscribers email type
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.
Image CAPTCHA
Enter the characters shown in the image.