Edgar Law Firm LLC Trial Lawyers

Adeptly Guarding Your Business’s Interests

What is the Class-Action Fairness Act of 2005?

On Behalf of | Jul 22, 2021 | Class Actions

Class action lawsuits allow multiple people to come together to hold another party accountable for negligence. These cases can help people to get justice even if they do not have the time or money to take a case to court personally.

However, there are some concerns with this type of lawsuit, which led to the Class Action Fairness Act of 2005. The U.S. Government Publishing Office explains this act works to reach three specific goals to make class-action lawsuits fair for participants.

Jurisdiction options

The act helps make it easier to take a case into federal court. Prior rules would usually require cases to stay in state court, but with the adoption of the act, people can now have options to bring important cases into the federal system where they may have more of an impact on policies moving forward, which can help to keep more people safe.

Better outcomes

The act also works to allow cases to move more quickly and to ensure fairness for all members. It removes discrimination in awarding damages. For example, before, people who lived loser to the court would get higher payouts, but the act stops this from happening. It also helps ensure less loss for class members and ensures fair attorney fees.

Resulting benefits

The act also strives to help increase the value of class action lawsuits for society as a whole. Instead of focusing on damages for just class members, it helps to ensure there is some accountability for the company or entity facing the claims.

Class actions were essentially made easier for members and more productive for society through the passing of this act.

FindLaw Network