Class Action Dilemmas: Pursuing Public Goals for Private Gain

by Deborah Hensler, Erick K. Moller

Overview

Class action law suits abound, but what is their purpose, and who benefits? This independent look at class action practices discusses the history of such cases, the driving forces behind them, and the justice or protection that their settlement provides. A comprehensive picture of class action suits in the 1990s comes to life in 10 fascinating case

Product Details

ISBN-13:	9780833026019
Publisher:	RAND Corporation
Publication date:	07/10/2000
Pages:	625
Product dimensions:	7.08(w) x 9.96(h) x 1.60(d)
Lexile:	1740L (what's this?)

About the Author

Jennifer Gross (J.D., University of Southern California) is a doctoral fellow at the RAND Graduate School. Her studies focus on the use of law as a tool to deter undesirable behavior effectively. Jennifer has been a member of the class action research team and is currently conducting research on the use of appeals and grievances procedures in managed care.

Table of Contents

THE ONCE AND FUTURE CONTROVERSY ............................... 1 FAIRNESS ISSUES CATALYZE AN IDEOLOGICAL DEBATE ................... 2 BRINGING POLICY ANALYSIS TO BEAR ................................. 3 Methods ....................................................... 4 THE CURRENT CLASS ACTION LANDSCAPE ............................. 5 CLASS ACTION DILEMMAS ARISE FROM THE INCENTIVES OF LAWYERS, PARTIES, AND JUDGES ......................................... 8 MASS TORT CLASS ACTIONS INJECT ADDITIONAL INCENTIVES ............. 11 HOW INCENTIVES SHAPE OUTCOMES.................................. 12 Class Actions Are Complex Social Dramas .............................. 13 The Merits Are in the Eyes of the Beholders ............................. 15 The Benefits and Costs Are Difficult to Assess ............................ 18 1. Negotiated Compensation Amounts Varied Dramatically ............... 19 2. In Some Cases, Actual Compensation Was a Lot Less Than the Amount Negotiated.................................................. 20 3. Consumer Litigation Was Associated with Changes in Practice-but Some Changes May Have Had Other Explanations ......................... 20 4. Class Counsel's Fees Were a Modest Share of the Negotiated Settlements .... 20 5. In Some Cases, Class Counsel Got a Larger Share of the Actual Dollars Paid Out Than Indicated by the Negotiated Settlement ..................... 21 6. In a Few Cases, Class Counsel Got More Than the Total Collected ......... 21 7. Total Transaction Costs Are Unknown ............................. 22 JUDGES' ACTIONS DETERMINE THE COST-BENEFIT RATIO ................. 23 FINDING COMMON GROUND BY FOCUSING ON PRACTICE................. 25 Adding a Cost-Benefit Test for Certification Would Yield Unpredictable Outcomes .................................................. 26 Requiring Class Members to Opt In Would Array Business Representatives Against Consumer Advocates.................................... 26 Prohibiting Settlement Classes Might Not Cure Any Problems ................ 27 Broadening Federal Court Jurisdiction Would Give Federal Judges More Control, but Would Not Address Other Important Issues ...................... 28 Prohibiting Mass Tort Class Actions Would Not Solve the Mass Tort Problem..... 30 Increasing Judicial Regulation of Damage Class Actions Is the Key to a Better Balance Between Public Goals and Private Gain....................... 31 1. Judges Need to Scrutinize Proposed Settlements More Closely ............ 32

Editorial Reviews

...a thoughtful discussion of current trends in mass litigation....a highly recommended addition to professional, governmental, academic, and judicial reference libraries.

Wisconsin Bookwatch

...an ambitious attempt...to assess the costs and benefits of class action lawsuits.

Law and Politics Book Review

...an ambitious attempt...to assess the costs and benefits of class action lawsuits.

Law & Politics Book Review

Class Action Dilemmas: Pursuing Public Goals For Private Gain is the collaborative effort of Deborah R. Hensler, Nicholas, M. Pace, Bonita Dombey-Moore, Beth Giddens, Jennifer Gross, and Erik K. Moller under the auspices of the Rand Corporation's "Institute for Civil Justice". This in-depth, benchmark study examines newly compiled information about class action law suits and offers a thoughtful discussion of current trends in mass litigation and their implications for the future. Data was collected from extensive interviews with case participants, various electronic sources, court records, and other legal documents. Commentary on the federal class action rule is also reviewed along with the most recent attempt to revise the rule. The contributors discuss the history of the controversy of class action law suits, and present ten illustrative case studies. In addition, proposals for options for reform that may improve the balance of public good and private gain are offered for consideration. Class Action Dilemmas is a very highly recommended addition to professional, governmental, academic, and judicial reference libraries.
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