World class actions : a guide to group and representative actions around the globe / edited by Paul G. Karlsgodt.
2012
K2243 .W67 2012 (Map It)
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Title
World class actions : a guide to group and representative actions around the globe / edited by Paul G. Karlsgodt.
Published
Oxford [UK] ; New York : Oxford University Press, [2012]
Copyright
©2012
Call Number
K2243 .W67 2012
ISBN
9780199730247 (pbk. : alk. paper)
0199730245 (pbk. : alk. paper)
0199730245 (pbk. : alk. paper)
Description
xlii, 811 pages ; 24 cm
System Control No.
(OCoLC)772715755
Bibliography, etc. Note
Includes bibliographical references and index.
Record Appears in
Added Author
Table of Contents
Acknowledgments
xxxi
List of Contributors
xxxiii
Introduction
xxxv
pt. I
MULTIPARTY AND REPRESENTATIVE ACTION SYSTEMS AROUND THE WORLD
1.
The United States
3
1.1.
Introduction
3
1.2.
Legal Systems in the United States
4
1.2.1.
The Importance of Common Law and Precedent
4
1.2.2.
The Role of Federalism
5
1.2.3.
The Federal Court System
5
1.2.4.
State Civil Court Systems
6
1.2.5.
Comparing Federal Court to State Court Jurisdiction
7
1.2.6.
Personal Jurisdiction
10
1.2.7.
The Rules of Civil Procedure
11
1.2.8.
Juries in Civil Cases
11
1.2.9.
Pleadings
13
1.2.10.
Pretrial Discovery
14
1.2.11.
Remedies
15
1.2.12.
Appeals
19
1.2.13.
Litigation Funding, Attorneys' Fees, and Fee-Shifting
19
1.2.14.
Attorney Licensing
21
1.3.
Class Actions in the United States
22
1.3.1.
General Requirements for Class Certification
22
1.3.2.
Types of Class Actions
24
1.3.2.1.
Class Actions under Rule 23(b)(1)(A) and (B)
25
1.3.2.2.
Class Actions for Injunctive or Declaratory Relief under Rule 23(b)(2)
25
1.3.2.3.
Class Actions for Damages under Rule 23(b)(3)
26
1.3.3.
State Law Deviations from Rule 23
27
1.3.4.
The Class Action Fairness Act and Forum Selection between Federal and State Courts in Class Actions
28
1.3.5.
The Class Certification Decision
29
1.3.6.
Appointment of Class Counsel
31
1.3.7.
Notice to the Class
32
1.3.8.
Defendant Classes
33
1.3.9.
Appeals of Class Certification Decisions
34
1.3.10.
Court Supervision of Class Actions
35
1.3.11.
Class Action Settlements
36
1.3.11.1.
Rule 23(e)---Basic Requirements for Class Action Settlements
36
1.3.11.2.
Types of Class Action Settlements
36
1.3.11.3.
The Settlement Process
38
1.3.11.3.1.
Preliminary Approval
38
1.3.11.3.2.
Implementation of the Notice Program
39
1.3.11.3.3.
Final Fairness Hearing
41
1.3.11.3.4.
Proceedings Following the Fairness Hearing
43
1.3.12.
Class Action Trials
44
1.4.
Other U.S. Multiparty or Representative Action Procedures
44
1.4.1.
Mass Actions and the MDL Panel
44
1.4.2.
Other Specific Procedures
46
1.5.
Practical Considerations in Prosecuting or Defending Class Actions in the United States
49
1.5.1.
Cultural Factors
49
1.5.2.
Litigation "Hot Spots"
50
1.5.3.
Locality-Specific Factors
52
1.5.4.
Class Action Funding
53
1.5.5.
Class Action Support Professionals
54
1.6.
For Further Study
54
2.
Canada
56
2.1.
Introduction
56
2.2.
The Canadian Legal System
57
2.3.
Civil Proceedings in Canada
58
2.3.1.
Pleadings
59
2.3.2.
Pretrial Discovery
59
2.3.3.
Trial
61
2.3.4.
Appeals
61
2.4.
Remedies
62
2.4.1.
Damages
62
2.4.2.
Aggregate Damages
63
2.5.
Rules Governing Class, Representative, and Group Actions in Canada
63
2.5.1.
Threshold Requirements for Class Certification in the Common Law Provinces
65
2.5.2.
Quebec's Authorization Process
66
2.5.3.
Common Themes in Class Certification in All Canadian Jurisdictions
67
2.5.3.1.
Cognizable Cause of Action
67
2.5.3.2.
Identifiable Class
67
2.5.3.2.1.
Class Size
68
2.5.3.2.2.
Class Definition
68
2.5.3.3.
Common Issues
68
2.5.3.4.
Preferable Procedure
70
2.5.3.5.
Representative Plaintiff
72
2.5.3.6.
Key Certification Decisions
73
2.5.4.
Appealing the Certification Order
75
2.5.5.
Requirements to Serve as Class Counsel
76
2.6.
Special Issues Pertaining to Class Actions in Certain Substantive Areas of Law
76
2.6.1.
Securities Law
76
2.6.2.
Antitrust and Competition Law
81
2.6.3.
Civil or Human Rights
83
2.6.4.
Employment and Labor
84
2.6.4.1.
Wrongful Dismissal
85
2.6.4.2.
Unpaid Wages, Bonuses, and Overtime
87
2.6.4.3.
Retirement Benefits
88
2.6.5.
Product Liability and Mass Torts
90
2.6.6.
Environmental Law
94
2.6.7.
Waiver of Tort
96
2.7.
Practical Considerations
98
2.7.1.
Litigation "Hot Spots"
98
2.7.2.
Verdicts and Exposure Considerations
99
2.8.
Costs and Funding
101
2.8.1.
Cost-Shifting
101
2.8.2.
Litigation Funding
102
2.8.2.1.
Public Funding
102
2.8.2.2.
Private Funding
102
2.8.2.2.1.
Third-Party Funding
102
2.8.2.2.2.
Contingency Fees
103
2.8.3.
Costs Awards
103
2.8.4.
Resources for Class Action Funding
107
2.8.4.1.
The Ontario Class Proceedings Fund
107
2.8.4.2.
The Quebec Fonds
109
2.8.4.3.
Third-Party Financing
110
2.8.5.
Class Action Resources for Lawyers
111
2.8.6.
Class Action Vendors
111
2.9.
Key Issues and Considerations for the Future
112
2.9.1.
Legislative Reform
112
2.9.2.
Multijurisdictional Classes
112
2.9.3.
National Class Action Database
113
2.10.
Cultural and Societal Considerations
113
3.
Latin America
114
3.1.
Introduction
114
3.2.
Foundations Common to Latin American Legal Systems
114
3.3.
Collective Actions and Class Actions: A Challenge to Latin America's Legal Tradition
116
3.4.
The Iberoamerican Model Code on Collective Actions
117
3.4.1.
Diffuse and Individual Homogeneous Rights or Interests under the Model Code
118
3.4.2.
Standing to Sue
118
3.4.3.
Some Particulars on the Procedure
118
3.4.4.
The Judgment
120
3.4.5.
Collective Actions against a Group, Category, or Class
121
3.5.
Latin American Countries with Express Collective or Class Action Procedures
121
3.5.1.
Brazil
121
3.5.1.1.
Introduction
121
3.5.1.2.
The Court System in Brazil
122
3.5.1.3.
Pleadings and Discovery
123
3.5.1.4.
Costs
123
3.5.1.5.
The Class Action Regime within the Brazilian Consumer Defense Code
123
3.5.2.
Chile
125
3.5.2.1.
The Court System in Chile
126
3.5.2.2.
Pleadings and Discovery
126
3.5.2.3.
Costs
126
3.5.2.4.
Collective Litigation in Chile: The Consumer Protection Act
127
3.5.3.
Colombia
129
3.5.3.1.
Popular Actions
130
3.5.3.2.
Class Actions
132
3.6.
Latin American Countries with Developing Collective Litigation Procedures
134
3.6.1.
Argentina
134
3.6.1.1.
Introduction
134
3.6.1.2.
The 1994 Constitutional Amendment
135
3.6.1.3.
The Consumer Protection Act
136
3.6.1.4.
The Halabi Decision: A Gateway to Class Actions in Argentina
137
3.6.2.
Costa Rica
138
3.6.3.
Ecuador
139
3.6.4.
Mexico
141
3.6.5.
Peru
142
3.6.6.
Uruguay
143
4.
Representative Actions and Proposed Reforms in the European Union
144
4.1.
Overview of EU Directives
145
4.2.
Representative and Group Actions in Consumer Protection
146
4.3.
Representative and Group Actions in Competition Law
149
4.4.
Proposed Changes in Collective Actions
150
4.4.1.
Proposed Collective Actions in Competition Law
150
4.4.2.
Proposed Collective Actions in Consumer Protection Law
151
4.5.
The Debate over Proposed Reforms in Individual EU Member Countries
155
4.5.1.
Proposed Reforms in the United Kingdom
156
4.5.2.
Proposed Reforms in France
159
4.5.2.1.
History of the National Debate over Class Actions
160
4.5.2.1.1.
Political Declarations
160
4.5.2.1.2.
Working Groups
161
4.5.2.1.3.
Legislative Reform Proposals
162
4.5.2.2.
Recent Developments in 2010 to Early 2012
163
4.5.2.3.
Commonly Cited Arguments in Favor of the Adoption of Collective Action Procedure
164
4.5.2.4.
Commonly Cited Obstacles to the Introduction of Class Action Procedures under French Law
165
4.5.2.4.1.
Constitutional Obstacles
165
4.5.2.4.2.
Nul Ne Plaide Par Procureur
166
4.5.2.4.3.
Integral Compensation for the Loss Suffered
166
4.5.2.4.4.
Attorneys' Ethics
167
4.5.2.5.
Conclusion
167
4.5.2.6.
Selected Literature
168
5.
The United Kingdom
169
5.1.
Introduction
169
5.2.
The Legal System in England and Wales
171
5.2.1.
Pretrial Discovery
172
5.2.2.
Appeals
173
5.2.3.
Remedies
174
5.2.4.
Costs and Litigation Funding
176
5.3.
Group and Representative Action Rules, Statutes, and Regulations
178
5.3.1.
Collective Actions
178
5.3.2.
Statutory Collective Actions
182
5.3.3.
Representative Actions
184
5.3.4.
Practical Considerations
185
6.
Denmark
186
6.1.
Introduction
186
6.2.
The Danish Legal System
187
6.2.1.
The Civil Law Basis for Danish Law
187
6.2.2.
The Court System
187
6.2.3.
Documentary Evidence and Document Production
188
6.2.4.
Remedies
189
6.2.5.
Legal Cost Allocation
190
6.2.6.
Legal Aid
190
6.2.7.
The Consumer Ombudsman
190
6.3.
Class Actions in Denmark
191
6.3.1.
The Rules Governing Class Actions
191
6.3.2.
The Scope of the Danish Act
191
6.3.3.
Initiating a Class Action
191
6.3.4.
Opt-In or Opt-Out
193
6.3.5.
The Class Representative
193
6.3.6.
The Role of an Absent Class Member and Notice
194
6.3.7.
Appeal
195
6.3.8.
Legal Costs and Security
196
6.4.
Judicial Treatment of the Danish Act
196
6.5.
Practical Considerations
197
6.6.
Quo Vadis?
197
7.
Sweden
198
7.1.
Introduction
198
7.2.
The Swedish Legal System
199
7.2.1.
The Civil Law Basis for Swedish Law
199
7.2.2.
The Swedish Courts
199
7.2.3.
The Consumer Ombudsman
200
7.2.4.
Document Production
200
7.2.5.
Available Remedies
201
7.2.6.
Litigation Costs and Their Allocation
201
7.3.
The Swedish Group Proceedings Act
202
7.3.1.
Scope
202
7.3.2.
Various Types of Group Actions
202
7.3.3.
How to Initiate a Group Action
203
7.3.4.
Defining the Group and the Opt-In Procedure
203
7.3.5.
Special Preconditions for Allowing a Group Action under the Swedish Act
204
7.3.6.
The Role of the Plaintiff
204
7.3.7.
The Role of the Group Members
205
7.4.
Judicial Application of the Swedish Act
206
7.4.1.
Court Cases in Which Judgments Have Been Rendered
207
7.4.2.
Court Cases in Which the Group Actions Were Withdrawn before the District Court Decided on Allowing the Action
208
7.4.3.
Other Cases in Which Group Actions Have Been Allowed
209
7.4.4.
Court Cases in Which Group Actions Have Not Been Allowed
210
7.5.
Practical Considerations
211
7.6.
The Future
212
8.
Finland
214
8.1.
Introduction
214
8.2.
The Finnish Legal System
215
8.2.1.
The Civil Law Basis for Finnish Law
215
8.2.2.
The Court System
215
8.2.3.
Evidence and Document Production
217
8.2.4.
Civil Remedies
218
8.2.5.
Litigation Costs and Their Allocation
219
8.2.6.
The Role of the Consumer Ombudsman
219
8.3.
Class Actions in Finland
220
8.3.1.
Introduction
220
8.3.2.
Fundamental Preconditions
221
8.3.3.
Other Requirements and Considerations
221
8.3.4.
Commencement of the Proceedings and Opt-In
222
8.3.5.
The Class Representative
223
8.3.6.
The Role of a Class Member and Resignation from the Class
224
8.3.7.
Expansion/Restriction of the Action
225
8.3.8.
Decision and Appeal
225
8.3.9.
Legal Costs
226
8.3.10.
Case Law
226
8.4.
Practical Considerations
227
8.5.
Quo Vadis?
228
9.
Norway
229
9.1.
Introduction
229
9.2.
The Norwegian Legal System
229
9.2.1.
The Civil Law Basis for Norwegian Law
229
9.2.2.
The Court System
230
9.2.3.
Evidence and Document Production
231
9.2.4.
The Types of Remedies Available
232
9.2.5.
Litigation Costs and Their Allocation
232
9.2.6.
The Role of the Consumer Ombudsman/Consumer Council
233
9.3.
Class Actions in Norway
234
9.3.1.
Introduction
234
9.3.2.
Fundamental Preconditions
234
9.3.3.
Opt-In or Opt-Out
235
9.3.4.
The Class Representative
236
9.3.5.
The Role of a Class Member
237
9.3.6.
Appeal
238
9.3.7.
Cost-Shifting in Norwegian Class Actions
238
9.4.
Judicial Treatment of Class Actions
239
9.5.
Practical Considerations
240
10.
Germany
241
10.1.
Introduction
241
10.2.
The German Legal System in General
241
10.3.
Representative and Group Action Procedures in Germany
244
10.3.1.
Joinder of Parties
244
10.3.2.
Pooling of Individual Interests
244
10.3.3.
Enforcement of Consumer Protection and Competition Law by Certain Organizations
245
10.3.3.1.
Injunctive Relief and Revocation Claims
245
10.3.3.2.
Disgorgement of Profits
246
10.3.3.3.
Mass Torts
246
10.3.3.4.
Securities Litigation: Capital Market Model Proceedings Act
246
10.3.3.5.
Case Studies
249
10.3.3.5.1.
Deutsche Telekom Case
249
10.3.3.5.2.
Daimler Case
250
10.3.3.5.3.
Further Cases
250
10.4.
Conclusion
250
10.5.
Selected Literature
251
11.
Austria
252
11.1.
Introduction
252
11.2.
The Austrian Legal Framework
253
11.2.1.
Civil Procedure Law
253
11.2.2.
The Austrian Court System
253
11.2.3.
Damages
254
11.2.4.
Litigation Costs and Cost-Shifting
254
11.2.5.
Litigation Funding
255
11.3.
Multiparty and Group Litigation in Austria
256
11.3.1.
Procedural Rules Governing the Participation of Multiple Legal Actors in Civil Proceedings
256
11.3.1.1.
Joinder of Proceedings (Streitgenossenschaft/Subjektive Klagshaufung)
256
11.3.1.2.
Intervention (Nebenintervention)
257
11.3.1.3.
Accumulation of Claims (Objektive Klagshaufung)
257
11.3.1.4.
Consolidation of Individual Proceedings (Verbindung von Verfahren)
257
11.3.2.
Specific Group Action Procedures Available under Austrian Law
258
11.3.2.1.
Model Case Proceedings (Verbands-Musterklage)
258
11.3.2.2.
Actions to Be Brought by Certain Associations (Verbandsklage)
258
11.3.3.
Austrian-style Class Actions (Sammelklage nach osterreichischem Recht)
259
11.3.3.1.
The Initial Cases
259
11.3.3.2.
The Supreme Court's Decision
260
11.3.3.3.
Developments in 2010
261
11.4.
Criticisms of Australian-style Class Actions
261
11.5.
Key Legislation Proposals and Issues to Be Considered
261
11.6.
Conclusion
263
12.
Switzerland
264
12.1.
Overview
264
12.2.
The Swiss Legal System
265
12.3.
Collective Actions in Switzerland
266
12.3.1.
General Procedural Devices for Limited Collective Redress
266
12.3.2.
Special Procedural Devices for Limited Collective Redress
267
12.4.
Trends and Proposed Legislation
269
13.
Belgium
271
13.1.
Introduction
271
13.2.
Collective and Class Action Litigation in Belgium
273
13.2.1.
Existing Group Litigation
273
13.2.2.
Representative Litigation
274
13.2.3.
Specific Legislation
275
13.2.4.
From Embryonic Class Actions in Employment Matters, to Beyond...
276
13.3.
Recognition of Foreign (Opt-Out) Class Actions
278
13.3.1.
Conditions for the Recognition of a U.S. Court Decision in Belgium
278
13.3.2.
Can a U.S. Opt-Out Class Action Judgment Be Recognized in Belgium?
281
13.3.2.1.
Concepts of International Public Policy and the Requirements of a Fair Trial and Due Process
281
13.3.2.2.
These Grounds for Refusal Do Not Result, by Definition, in a Nonrecognition of a U.S. Opt-Out Class Action Judgment
282
13.4.
Conclusion
285
13.5.
Selected Literature
285
14.
The Netherlands
286
14.1.
Introduction
286
14.2.
The Dutch Legal System
286
14.3.
Collective Litigation in the Netherlands
288
14.3.1.
Actions by Associations and Foundations Pursuant to Article 3:305a DCC
288
14.3.2.
The Collective Financial Settlement Action
289
14.3.3.
Cases Applying the Act on the Collective Settlement of Mass Damages
293
14.3.3.1.
The DES Case
293
14.3.3.2.
The Dexia Case
295
14.3.3.3.
The Shell Case
296
14.3.3.4.
The Converium Case
297
14.4.
Dutch Recognition of Class Action Settlements Entered in the United States
298
14.5.
Conclusion
300
14.6.
For Further Reading
300
15.
Spain
301
15.1.
Introduction
301
15.2.
The Civil Law System in Spain
302
15.2.1.
Spanish Civil Courts
302
15.2.2.
General Civil Procedure
303
15.2.3.
Pretrial Discovery
303
15.2.4.
Remedies, Costs, and Attorneys' Fees
304
15.3.
Group or Representative Action Rules, Statutes, and Regulations
305
15.3.1.
Who May Bring a Collective Action?
305
15.3.2.
Trial Court Procedure
306
15.3.3.
The Effect of Opting In
308
15.3.4.
Judgments in Collective Proceedings
308
15.3.5.
Appeal
309
15.4.
Practical Considerations
309
15.5.
Issues to Consider for the Future
310
15.6.
For Further Reading
311
16.
Portugal
312
16.1.
Introduction
312
16.2.
The Legal System in Portugal
313
16.2.1.
Source of Law
313
16.2.2.
The Trial Courts
313
16.2.3.
Evidence Gathering and Discovery
314
16.2.4.
Declarative Proceedings
314
16.2.5.
Appeals
315
16.2.6.
Remedies
316
16.2.7.
Litigation Costs and Funding
316
16.3.
Class Actions in Portugal
317
16.3.1.
Introduction
317
16.3.2.
Class Actions as Representative Actions
317
16.3.3.
Who May Bring a Class Action?
318
16.3.4.
Class Action Procedure
318
16.3.5.
The Class Action Rules in Operation
320
16.4.
Other Group Action Procedures
321
16.5.
Possible Future Developments
321
16.6.
For Further Reading
321
17.
France
323
17.1.
Introduction
323
17.2.
The French Legal System
323
17.2.1.
The Civil Court System
324
17.2.2.
Civil Trial Procedure
324
17.2.3.
Remedies and Cost-Shifting
326
17.3.
Collective and Multiparty Actions in France
326
17.3.1.
Joinder, Consolidation, and Intervention
326
17.3.2.
Action Taken in a Collective Interest
327
17.3.3.
Joint Representative Actions
329
17.4.
Recognition of Foreign Class Actions in France
331
17.5.
Conclusion
333
17.6.
For Further Reading
333
18.
Italy
334
18.1.
Introduction
334
18.2.
General Characteristics of Italian Civil Procedure
335
18.3.
Group Action Procedures in Effect before the Introduction of Art. 140 bis of the Consumer Code
335
18.4.
General Characteristics of Class Actions as Amended by Law No. 99 Dated July 23, 2009 and Legislative Decree No. 1 Dated January 24, 2012
336
18.5.
The First Class Action Started Pursuant to Art. 140 bis of the Consumer Code
338
18.6.
Final Comments
339
18.7.
For Further Reading
339
19.
Russia
341
19.1.
Introduction
341
19.2.
General Characteristics of Russian Civil Procedure
342
19.3.
Group and Representative Action Procedures
344
19.4.
Class Action Procedures in Russia
345
19.5.
First Class Action Cases
346
19.6.
Practical Considerations
347
19.7.
For Further Reading
348
20.
Israel
349
20.1.
Introduction to the Israeli Legal System
349
20.1.1.
Sources of Law
349
20.1.2.
The Israeli Courts
350
20.1.3.
Civil Practice in Israel
351
20.1.3.1.
Statement of Claim
351
20.1.3.2.
Statement of Defense
351
20.1.3.3.
Counterclaim
351
20.1.3.4.
Third-Party Claim
352
20.1.3.5.
Better Particulars
352
20.1.3.6.
Discovery and Questionnaires
352
20.1.3.6.1.
Questionnaires
352
20.1.3.6.2.
Disclosure of Documents
352
20.1.3.6.3.
Request to Admit Facts or Documents
352
20.1.3.7.
Stages of the Trial
353
20.1.3.7.1.
Pretrial Hearing
353
20.1.3.7.2.
Hearing of Evidence
353
20.1.3.7.3.
Summaries
353
20.1.3.8.
Appeal
353
20.1.4.
Remedies
354
20.1.5.
Litigation Funding
354
20.2.
Class Actions in Israel Prior to 2006
355
20.2.1.
The Specific Statutory Provisions to Allow for Class Actions
355
20.2.2.
Class Actions Permitted before 2006 in the Absence of Express Legislation
357
20.2.3.
Regulation 29 of the Civil Procedure Regulations
357
20.3.
The Class Actions Law, 2006
358
20.4.
Class Action Procedure
360
20.4.1.
Prerequisites for Class Certification
360
20.4.1.1.
The Requirement of a Personal Cause of Action
362
20.4.1.2.
The Requirement that the Action Raise Issues Common to Class Members
362
20.4.2.
Other Procedures Applicable to Class Actions
363
20.4.3.
Organizations as Class Representatives
363
20.4.4.
Special Procedures Governing Claims against the State's Authorities
363
20.4.5.
Class Action Settlements
364
20.5.
Trends in Israeli Court Rulings after the Legislation of the Class Actions Law
365
20.5.1.
Consumer Class Actions
365
20.5.2.
Securities Class Actions
367
20.5.2.1.
Securities Fraud Cases
368
20.5.2.2.
Compulsory Acquisition Cases
371
20.5.2.3.
D&O Errors and Omissions Cases
371
20.5.2.4.
Wrongful Acts by Controlling Shareholders
372
20.5.2.5.
Class Actions Resulting from Cessation in Trading
373
20.5.3.
Class Actions against Banks and Credit Card Companies
373
20.5.4.
Environmental Class Actions
375
20.5.5.
Class Actions against Insurers
376
20.6.
Conclusion
377
21.
South Africa
378
21.1.
Introduction
378
21.2.
The Law of the South African Republic
378
21.2.1.
The Legislature
379
21.2.2.
The Judiciary
380
21.3.
Sources of Law
380
21.4.
Class Actions in South Africa
381
21.4.1.
Class Actions: Where We Have Been
382
21.4.2.
The Class Action Procedure
384
21.4.2.1.
The Class
385
21.4.2.2.
Evidence of the Class
386
21.4.2.3.
Jurisdiction
387
21.4.2.4.
Notice
388
21.4.3.
Conclusion
388
21.5.
Funding Class Action Litigation
388
21.6.
Legal Representation and Litigation Funding in Class Actions
389
21.7.
Other Aspects of South African Civil Procedure that Are Potentially Applicable to Class Actions
391
22.
Australia
392
22.1.
Introduction
392
22.2.
The Legal System in Australia
393
22.2.1.
Introduction
393
22.2.2.
Civil Trial Courts
394
22.2.3.
Decision-Makers
395
22.2.4.
Pretrial Discovery
396
22.2.5.
Appeals
396
22.2.5.1.
Right to Appeal
396
22.2.5.2.
Restrictions Applying to Appeals
397
22.2.5.2.1.
Appeals from a Judgment at First Instance
398
22.2.5.3.
Restrictions Arising from the Conduct of the Appellant
399
22.2.5.4.
Statutory Limitation
400
22.2.6.
Remedies
400
22.2.6.1.
Damages
401
22.2.6.2.
Equitable Relief
401
22.2.7.
Caps on Damages
401
22.2.8.
Civil Remedies and Administrative Penalties
402
22.2.9.
Litigation Funding
402
22.2.9.1.
Loser Pays
402
22.2.9.2.
Contingency and Conditional Fee Agreements
403
22.2.9.3.
Private Litigation Funding
403
22.3.
The History of Class Actions and Collective Litigation in Australia
405
22.4.
Class Actions Today
407
22.4.1.
Class Action Procedure
407
22.4.1.1.
Commencing an Action
407
22.4.1.1.1.
At Least Seven Persons
407
22.4.1.1.2.
The Claims Must Arise Out of "the Same, Similar, or Related Circumstances"
408
22.4.1.1.3.
The Claims Must Give Rise to at Least One "Substantial Common Issue of Law or Fact"
409
22.4.1.2.
Who Can Bring a Group or Representative Action?
409
22.4.1.2.1.
Standing
409
22.4.1.2.2.
Requirements for Lawyers
410
22.4.1.3.
Opt-Out Procedure
410
22.4.1.4.
Differences between Australian and U.S. Class Action Procedure
411
22.4.1.4.1.
The Lack of an Affirmative Certification Requirement
411
22.4.1.4.2.
Commonality
412
22.4.1.4.3.
Typicality
412
22.4.1.5.
Group Definition
412
22.4.1.6.
Communicating with Class Members
413
22.4.1.7.
Termination of a Class Action
414
22.4.1.8.
Judgment and Costs in Class Actions
416
22.4.1.9.
Settlement or Discontinuance of a Class Action
417
22.4.2.
Class Actions in Particular Substantive Areas of Law
417
22.4.2.1.
Product Liability
417
22.4.2.2.
Consumer Fraud
418
22.4.2.3.
Securities
419
22.4.2.4.
Antitrust and Competition Law
420
22.4.2.5.
Civil or Human Rights
421
22.4.2.6.
Environmental Law
422
22.4.2.7.
Employment and Labor Laws
423
22.5.
Other Factors Impacting the Likely Range of Verdicts or Outcomes in Australian Class Actions
424
22.6.
Key Proposed Legislation
424
22.6.1.
Reforms Proposed in Victoria
424
22.6.1.1.
Opt-In System
425
22.6.1.2.
Introduction of Cy Pres Damages
426
22.6.1.3.
Changes to Costs Rules
427
22.6.2.
NSW Proposed Reforms
427
23.
The Asia-Pacific Region
429
23.1.
Introduction
429
23.2.
Japan
430
23.2.1.
The Legal System
430
23.2.1.1.
Trial and the Introduction of Saiban-in
431
23.2.1.2.
Discovery and Evidence Gathering
431
23.2.1.3.
Cost-Shifting and Litigation Funding
432
23.2.1.4.
Remedies
433
23.2.2.
Multiparty and Representative Proceedings in Japan
434
23.2.2.1.
Multiparty Proceedings before 1996
434
23.2.2.2.
Consumer Group Actions---Consumer Contract Act
434
23.2.2.3.
Joinder of Claims
435
23.2.2.4.
Representative Actions
436
23.2.3.
Conclusion
437
23.3.
Malaysia
438
23.3.1.
Civil Litigation in Malaysia, Generally
438
23.3.1.1.
Sources of Law in Civil Cases
438
23.3.1.2.
Civil Actions
439
23.3.1.3.
Appeals
440
23.3.1.4.
Remedies
443
23.3.1.5.
Litigation Funding
444
23.3.2.
Multiparty and Collective Actions in Malaysia
445
23.3.2.1.
Consolidated Actions
445
23.3.2.2.
Representative Actions
446
23.3.2.2.1.
Representative Actions against Private Parties
447
23.3.2.2.2.
Representative Actions against the Government or a Public Authority
448
23.3.2.3.
Joinder of Parties
450
23.3.2.4.
Derivative Actions
450
23.3.3.
The Future of Collective and Representative Litigation in Malaysia
452
23.4.
New Zealand
452
23.4.1.
The Legal System in New Zealand
452
23.4.1.1.
Civil Procedure, Generally
453
23.4.1.2.
Personal Injury Claims and the Accident Compensation Scheme
454
23.4.1.3.
Remedies
454
23.4.1.4.
Litigation Funding
456
23.4.2.
Representative and Multiparty Actions in New Zealand
457
23.4.2.1.
Existing Procedures
457
23.4.3.
Proposed Class Action Procedures
461
23.5.
Republic of Korea
461
23.5.1.
The Legal System
462
23.5.2.
Class Actions and Multiparty Litigation in Korea
463
23.5.2.1.
The History of Class Action Legislation in Korea
463
23.5.2.2.
Securities Class Action Regime
463
23.5.2.2.1.
Type of Claims Permitted
463
23.5.2.2.2.
Threshold Requirements for Certification
464
23.5.2.2.3.
Qualification of Lead Plaintiff and Legal Counsel
464
23.5.2.2.4.
Procedures
464
23.5.2.2.5.
The Effect of a Judgment and Distribution
465
23.5.2.3.
Group Actions in Consumer Protection Cases
465
23.5.3.
The Future of Class Actions in Korea
466
23.6.
Singapore
466
23.6.1.
Sources of Law
466
23.6.2.
Civil Litigation in Singapore
467
23.6.3.
Appeals
468
23.6.4.
Remedies
469
23.6.5.
Litigation Funding
469
23.6.6.
Multiparty and Representative Litigation in Singapore
470
23.6.6.1.
Consolidated and Other Nonrepresentative Multiparty Litigation
470
23.6.6.2.
Representative Actions
470
23.7.
Taiwan
472
23.7.1.
Civil Litigation in Taiwan
472
23.7.2.
The Court System
473
23.7.2.1.
The District and High Courts
473
23.7.2.2.
The Supreme Court and Constitutional Court
474
23.7.3.
Litigation Funding and Cost-Shifting
474
23.7.4.
The History of Representative Proceedings in Taiwan
475
23.7.5.
The Two Kinds of Representative Proceedings
477
23.7.5.1.
Representative Proceedings by Assignment of a Party
477
23.7.5.1.1.
Representation by Persons with a Common Interest
477
23.7.5.1.2.
Publication to Other Persons with Common Interests
478
23.7.5.1.3.
Representation by an Incorporated Nonprofit Organization
478
23.7.5.1.4.
Representation by a Consumer Protection Organization under Article 50 of the CPL
478
23.7.5.2.
Representative Proceedings by Statutory Authorization
479
23.7.6.
Conclusion
479
24.
China
480
24.1.
Introduction
480
24.2.
The Chinese Legal System
481
24.2.1.
The Legal Tradition
481
24.2.1.1.
Chinese Ancient Legal Tradition
482
24.2.1.2.
The Legal Tradition of the Former Soviet Union and the Local Revolutionary Legal Tradition
482
24.2.1.3.
Western Legal Traditions
483
24.2.2.
The Legal Form and Legislative System
484
24.2.3.
Court System
485
24.2.3.1.
Grassroots People's Court
486
24.2.3.2.
Intermediate People's Court
486
24.2.3.3.
Higher People's Court
486
24.2.3.4.
Supreme People's Court
486
24.2.4.
A Brief Description of the Civil Litigation Process
486
24.2.5.
Remedies
488
24.2.6.
Appeal and Retrial
490
24.2.7.
Court Fees
490
24.2.8.
Lawyer Fees
491
24.2.9.
Litigation Agent
492
24.2.10.
Enforcement
493
24.3.
The Collective Action System in Contemporary China
494
24.3.1.
Joint Actions
494
24.3.2.
Representative Actions in Which the Number of Litigants Is Fixed
496
24.3.3.
Representative Actions in Which the Number of Litigants Is Not Fixed
497
24.3.4.
Distinguishing Characteristics among the Different Types of Collective Action Mechanisms
498
24.3.4.1.
The Representative Action vs. the Joint Action
499
24.3.4.2.
The Representative Action in Which the Number of Litigants Is Fixed vs. the Representative Action in Which the Number of Litigants Is Not Fixed
499
24.3.4.3.
The Essential Joint Action vs. the Common Joint Action
499
24.4.
Practical Considerations in Resolving Collective Disputes in China
500
24.4.1.
The Characteristics of Contemporary Chinese Collective Disputes
500
24.4.2.
Cultural Factors
501
24.4.3.
Sources of Funding for Collective Action
503
24.4.3.1.
Private Funding from the Plaintiffs Themselves
503
24.4.3.2.
Legal Aid
503
24.4.3.3.
Judicial Aid
504
24.4.3.4.
Contingency Fees
505
24.4.4.
The Court's Judicial Capacity
505
24.4.5.
The Impact of Procedures for Reviewing Judicial Performance
507
24.5.
Conclusion: Multiple Collective Dispute Resolution
508
24.5.1.
Resolving Collective Disputes by Various Action Mechanisms
509
24.5.2.
Resolving Collective Disputes by a Combination of Judicial and Alternative Dispute Resolution Procedures
509
24.5.3.
Resolving Collective Disputes by Social Collaborative Efforts
509
25.
India
510
25.1.
Introduction
510
25.2.
The Indian Legal System
511
25.2.1.
Decision-Makers/Fact Finders
512
25.2.2.
Pretrial Discovery
513
25.2.3.
Appeals
513
25.2.4.
Remedies
515
25.2.4.1.
Damages
515
25.2.4.2.
Injunctions
516
25.2.4.3.
Specific Performance
516
25.2.5.
Litigation Funding
517
25.2.5.1.
Attorneys' Fees
517
25.2.5.2.
"Loser Pays" Principle/English Rule in India
517
25.2.5.3.
Government Funds
517
25.3.
Rules, Statutes, and Regulations Governing Representative Actions
518
25.3.1.
Pleading Requirements
518
25.3.2.
Prerequisites for Representative or Class Actions
519
25.3.3.
Procedures Governing Public Interest Litigation
520
25.3.3.1.
General Procedures
520
25.3.3.2.
Standing to Pursue a PIL
521
25.3.3.3.
Filing Requirements
521
25.3.3.4.
PILs against Private Corporations
521
25.3.4.
PILs vs. Class Actions
522
25.3.5.
Key Decisions and Verdicts in PILs
522
25.3.6.
Representative Procedures Allowed in Certain Substantive Areas of Law
525
25.3.6.1.
Consumer Protection
525
25.3.6.2.
Securities
526
25.3.6.3.
Antitrust and Competition Law
528
25.3.6.4.
Civil or Human Rights
528
25.3.6.5.
Employment and Labor Law
529
25.3.6.6.
Environmental Law
529
25.4.
Conclusion
530
pt. II
SELECTED TOPICS IN INTERNATIONAL AND TRANSNATIONAL CLASS ACTION LAW
26.
Prosecuting Class Actions and Group Litigation
533
26.1.
Understanding the Rise of International Class and Collective Action Litigation and How This Leads to Classes that Span International Borders
533
26.1.1.
The Rise in Global Markets and International Legal Developments
533
26.1.2.
Changing Government Policies toward Collective Redress and Representative Legislation
541
26.1.3.
Importance and Benefits of Available Group Action Procedures
543
26.2.
Forum Selection in International Litigation
545
26.2.1.
The Importance of Available Group Action Procedures in a Given Forum
545
26.2.1.1.
Advantages and Disadvantages of Various Types of Group or Representative Actions: Opt-Out vs. Opt-In
545
26.2.1.2.
Procedural Advantages and Disadvantages of Litigating in Various Jurisdictions
551
26.2.1.2.1.
Level of Detail Required in a Complaint
553
26.2.1.2.2.
Availability of Discovery
556
26.2.1.2.2.1.
Jurisdictions Permitting Limited Discovery
556
26.2.1.2.2.2.
Jurisdictions Permitting Extensive Discover
558
26.2.1.2.3.
Advantages of Judge vs. Jury in Hearing Class Action Litigation Cases
559
26.2.1.2.3.1.
Common Law vs. Civil Law
559
26.2.1.2.3.2.
Judge vs. Jury
561
26.2.1.2.4.
Speed and Efficiency of Courts
563
26.2.1.2.5.
Availability of Claim Preclusion in Civil Cases from Criminal Liability of Defendant
563
26.2.1.2.6.
Advantages and Disadvantages of Procedures for Class Certification
564
26.2.1.2.7.
Potential Claimants (Who Can Sue?)
566
26.2.2.
Different Remedies Available in Different Forums
569
26.2.2.1.
Levels and Types of Damages
570
26.2.2.2.
Remedies Limited to the State
570
26.2.2.3.
Remedies Limited to Cy Pres Funds or Neutral Organizations
570
26.2.3.
Impact of Social Attitudes toward Litigation and Group Litigation Procedures
572
26.2.3.1.
Europe
572
26.2.3.2.
Brazil
574
26.2.4.
Impact of Legal System Cost Structures on Litigation and Group Litigation Procedures
575
26.2.4.1.
Litigation Costs in England and Wales
576
26.2.4.2.
The Emergence and Growth of Litigation Funding in England and Wales
577
26.2.4.2.1.
Insurance
577
26.2.4.2.2.
Third-Party Funding
580
26.2.5.
Fee-Shifting Considerations
582
26.2.5.1.
Attorney-Paid Contingency Fees
582
26.2.5.2.
Class Proceedings Funds in Canada
583
26.2.5.3.
Conditional Fee Agreements in the United Kingdom
583
26.2.6.
Changing Policies toward Group Litigation and Increased Willingness of Claimants to Participate in Group Actions
584
26.2.6.1.
Impacts of Reforms in Europe and Developed Markets
584
26.2.6.2.
Impacts of Reforms and New Procedures in Emerging Markets
586
26.2.7.
Increased Focus on Private Enforcement of the Laws in a Global Market
587
26.3.
Prosecuting Collective Actions under Procedural Schemes that Are Still Being Developed
588
26.3.1.
Seeking Collective Redress for Consumers, Investors, Employees, or Other Groups in a Global Economy
588
26.3.1.1.
Group Litigation Orders in the English High Court
590
26.3.1.2.
Strategies for Obtaining Collective Damages in Actions Filed in Other European Jurisdictions
592
26.3.1.2.1.
Claims Assignment
592
26.3.1.2.2.
Court-Approved Settlements
594
26.3.1.2.3.
The Accao Popular in Portugal
596
26.3.1.2.4.
Spanish Civil Procedure Law
597
26.3.2.
Lobbying Efforts and Complimentary Regulatory Action to Improve Access to Courts
598
26.3.2.1.
Office of Fair Trading (OFT) Report
598
26.3.2.2.
Civil Justice Council (CJC) Report
598
26.3.2.3.
European Commission (EC) White Paper
600
26.3.2.3.1.
Mechanisms of Collective Redress
601
26.3.2.3.2.
Disclosure
601
26.3.2.3.3.
Leniency Program
601
26.3.2.3.4.
Principles of Equivalence and Effectiveness
602
26.3.2.3.5.
"Pass-On" Defense
604
26.3.2.3.6.
Statute of Limitations
605
26.3.2.3.7.
Rules Governing Damages Actions
605
26.3.3.
The Decision to Pursue a Single-Forum or Multiforum Strategy
606
26.3.4.
Coordination of Government Agencies
608
26.3.5.
Public Relations Efforts in Support of International Representative or Group Action Litigation
611
26.3.5.1.
Potential Claimants
611
26.3.5.2.
Legislatures and Courts
611
26.3.5.3.
Defendants
612
26.4.
Conclusion
613
27.
Multijurisdictional and Transnational Class Litigation: Lawsuits Heard "Round the World"
615
27.1.
Introduction
615
27.2.
Types of Class Actions by Jurisdictional Scope
617
27.2.1.
Multijurisdictional Parallel Class Actions: Actions Brought in Multiple Forums
617
27.2.2.
Transnational Class Actions: One Action to Rule Them All
619
27.2.3.
A Critical Look at Transnational Class Actions
620
27.3.
Issues in Transnational Class Actions
624
27.3.1.
Preliminary Jurisdictional Issues
624
27.3.1.1.
Choice of Forum
624
27.3.1.2.
Res Judicata
625
27.3.1.3.
Jurisdiction Simpliciter
627
27.3.1.4.
Forum Non Conveniens
630
27.3.1.4.1.
Stay or Dismissal of Proceedings
631
27.3.1.5.
Antisuit Injunctions
634
27.3.2.
Jurisdictional Concerns during Certification
637
27.3.2.1.
Certification and the Res Judicata Effect
637
27.3.2.1.1.
The Requirement for Foreign Recognition
637
27.3.2.1.2.
Should Foreign Recognition Even Be a Relevant Factor?
640
27.3.2.2.
The Burden Imposed by Foreign Putative Class Members
641
27.3.2.2.1.
Due Process Considerations
642
27.3.2.2.2.
Conflicts of Law Considerations
643
27.3.2.3.
Evidentiary Challenges
644
27.3.2.3.1.
Evidence from Jurisdictions Party to the Hague Convention
644
27.3.2.3.2.
Evidence from Jurisdictions that Are Not Party to the Hague Convention
645
27.3.2.4.
Administrative Burdens
646
27.3.3.
Recognition and Enforcement of Foreign Judgments and Settlements
647
27.3.3.1.
Foreign Enforcement in Jurisdictions with Class Action Regimes
648
27.3.3.1.1.
United States
648
27.3.3.1.2.
Canada
649
27.3.3.1.3.
Australia
650
27.3.3.2.
Enforcement in Jurisdictions without Class Action Regimes
650
27.3.3.2.1.
Opt-Out Regimes
651
27.3.3.2.2.
Contingent Fee Arrangements
651
27.3.3.2.3.
Representative Plaintiffs: Public vs. Private Enforcers
652
27.3.3.2.4.
Punitive Damages
652
27.3.3.3.
Concluding Thoughts on Enforcement
653
27.4.
Common Types of Transnational Class Actions
654
27.4.1.
Human Rights
654
27.4.1.1.
The Marcos Litigation: The Elusiveness of Enforcement
655
27.4.1.2.
The Khulumani Litigation: Liability of Secondary Actors and the Role of Foreign Policy
656
27.4.2.
Mass Torts
658
27.4.2.1.
Canada as a Destination of Choice in Transnational Mass Tort Litigation?
658
27.4.2.2.
Transnational Mass Tort Litigation Involving the Actions of Multinational Companies Abroad
662
27.4.3.
Securities Claims
663
27.5.
The Increasing Impact of Transnational Class Actions in Europe
669
27.5.1.
The Existing Collective Redress Regime in Europe
669
27.5.2.
The Existing Regime for Recognition and Enforcement of Collective Redress
670
27.5.3.
The Door to Europe Is Opening: The Innovative Dutch Solution
671
28.
International Class Action Notice
673
28.1.
Act One: Managing an International Class
674
28.2.
Act Two: Reaching an International Class
677
28.3.
Act Three: Effectively Communicating with an International Class
682
28.4.
Act Four: Conclusion
685
29.
International Class Actions under the U.S. Alien Tort Claims Act
687
29.1.
Introduction
687
29.2.
The History of Class Action Litigation under the ATCA
688
29.3.
The Basic Requirements of Actions under the ATCA
690
29.4.
Unique Issues in ATCA Litigation Generally
692
29.4.1.
Who May Be Sued under the ATCA?
692
29.4.2.
Jurisdictional Defenses in ATCA Cases
692
29.4.2.1.
Extraterritorial Subject Matter Jurisdiction
692
29.4.2.2.
Personal Jurisdiction
693
29.4.2.3.
Foreign Policy Considerations and Other Prudential Limitations
694
29.4.2.4.
Exhaustion of Remedies
695
29.4.2.5.
Other Public Policy Considerations
696
29.4.3.
Remedies and Enforcement of Judgments
696
29.5.
Class Certification in Cases Brought under the ATCA
697
29.6.
Alternatives to Actions under the ATCA
699
30.
International Class Arbitration
700
30.1.
Introduction
700
30.2.
The History of Class Arbitration in the United States
701
30.2.1.
California Authorizes Class Arbitration in the Early 1980s
701
30.2.2.
A Decade Later, Pennsylvania Follows California
704
30.2.3.
The Federal Courts of Appeals Reject Class Arbitration
705
30.2.4.
The U.S. Supreme Court Opens the Floodgates: Green Tree Financial Corp. v. Bazzle
707
30.2.5.
The Post-Bazzle Rush to Class Arbitration
709
30.2.5.1.
The AAA and JAMS Establish Class Arbitration Procedures
709
30.2.5.2.
The AAA Class Arbitration Experience
710
30.2.5.3.
International Class Arbitrations in the United States
711
30.2.5.4.
Class Action Waivers and the Backlash against Bazzle
712
30.2.6.
The Supreme Court Attempts to Seal the Dam: Stolt-Nielsen S.A. v. AnimalFeeds International Corp.
714
30.2.7.
Class Arbitration Waivers after Stolt-Nielsen
717
30.2.8.
Jock v. Sterling Jewelers: The Class Arbitration Debate Continues
719
30.3.
Class Arbitration outside the United States
720
30.3.1.
National Courts and the Potential for Class Arbitration
721
30.3.1.1.
Class Arbitration in Colombia: A Surprising Exception
721
30.3.1.2.
The Possibility of Class Arbitration in Canada
723
30.3.2.
International Tribunals and Institutions Have Permitted Large, Consolidated Arbitrations, but Have Not Embraced Class Arbitration
725
30.4.
The Path to International Class Arbitration
728
30.4.1.
Drafting an Arbitration Clause to Evince Consent
729
30.4.2.
Developing a Suitable Class Arbitration Procedure
730
30.4.2.1.
Notice to Absent Class Members
730
30.4.2.2.
Early Resolution and Pleading Standards
731
30.4.2.3.
Settlement Fairness and Administration
731
30.4.2.4.
Costs and Fees
732
30.4.3.
The Challenge of International Enforcement
732
30.4.3.1.
Lack of Actual Notice of the Proceedings
734
30.4.3.2.
The Right to Defense
735
30.4.3.3.
Challenges for Lack of Consent
735
30.5.
Conclusion
736
31.
Representing Clients in Litigation Abroad
738
31.1.
Help! I've Been Sued in Qingdao
738
31.2.
How Convenient: There Are Lots of Foreign Counsel on the Internet
742
31.3.
What Do You Mean They Don't Do It That Way There---How Un-American
747
31.4.
Exposed---And in a Foreign Country No Less
751
Table of Cases
755
Index
777