Filing a class action lawsuit – what is it and how can you succeed and receive compensation?

What is a class action lawsuit?

A class action lawsuit is a very powerful and complex legal process in which one person or a small group of people ask the court to authorize them to represent a very large group of people who have been harmed by the same party (usually a company or some authority).

Filing a class action lawsuit can only be done when there is a large group of victims (at least several hundred people) and only when it can be proven (and not just assumed) that similar/identical damage was indeed caused to that group of victims.

In most cases, in class action proceedings, the amount of damage caused to each injured party is very small (perhaps even a few shekels), and therefore filing a personal claim becomes an economically unviable task. The only person who can file a class action is the person who was actually harmed by the company against which the proceedings are being considered (and in very exceptional cases, non-profit organizations that operate on the issue relevant to the proceedings).

The plaintiff or plaintiffs who file the proceeding are called the applicant or applicants, and after the application is approved, they are called The class plaintiff or class plaintiffs, and the rest of the victims are usually called The group of victims or group members.

Most often, the members of the group are not at all aware that a class action lawsuit is being filed on their behalf, and they usually learn of this after a media announcement regarding a settlement, or after the court's decision approving the lawsuit as a class action, or after a final judgment is rendered in the lawsuit.

Filing a class action lawsuit is very different from an individual/private lawsuit in many ways. The class action lawsuit is more cumbersome, often takes longer, sometimes involves more risks for the person considering filing it, and will not always lead to significant financial compensation or any financial compensation. In some cases, after filing the class action lawsuit, the initiator of the lawsuit will be forced to pay the opposing party very significant amounts of money in the form of legal fees.

Before filing a class action lawsuit or defending against it, it is advisable to consult with an experienced class action lawyer.

What cases are suitable for resolution in a class action lawsuit?

Cases that are suitable for resolution in a class action lawsuit have several things in common:

1. This is a uniform or very similar damage (for example: overcharging);
2. The amount of damage is usually low and does not justify filing a personal claim;
3. There is no need to conduct individual inquiries to discover whether any of the group members were harmed;
4. The group of victims numbers at least several hundred people (a small group of victims may preclude the conduct of the class action);
5. A class action lawsuit cannot be filed on any issue or matter – but only in those cases specified in the Second Schedule to the Class Actions Law;

Considering filing a motion to approve a class action lawsuit?

To understand whether your case is suitable for resolution in a class action proceeding, it is worth examining the following issues.

1. What evidence do I have?

If all you have is data that is relevant only to your specific case, you can give up the idea of ​​filing a class action. You need evidence that is relevant not only to your individual case, but evidence that will show that the company's failures constitute a harmful and infringing policy that is relevant to a large group of people.

2. Are there many casualties?

Of course, it is impossible to know the exact number of victims, certainly not before the case was filed with the court and a document discovery process took place.

If you do not know even one other victim, this may only reinforce the conclusion that this is not an improper policy of a company against which you are considering filing a class action lawsuit, but an individual case that is relevant only to you (or a very limited group of people). These cases are not suitable for a class action lawsuit.

On the other hand, if it is a misleading advertisement directed at the general public or an illegal collection action that can be proven to have been carried out in violation of the law, these cases may indicate a large group of victims.

3. What exactly do I want to claim?

If you want to claim damages such as Exemplary damages or damages without proof of damageYou cannot do this in a class action lawsuit.

If the cause of your claim requires an individual investigation with respect to each member of the group, these cases are also not suitable for resolution within the framework of a class action.

In a class action, it is also possible to claim compensation for uniform damage caused to the members of the group (for example, reimbursement for overcharging, even if the overcharging is not uniform among all members of the group), and compensation for Non-pecuniary damage.

4. On what issue do I want to file a class action lawsuit?

The Class Action Law states: Closed list of cases in which a class action lawsuit can be filed (this is not a short list and is very worth reviewing). If the issue in which you wish to file a class action lawsuit does not appear in the Second Schedule to the Class Actions Law, it will not be possible to conduct the lawsuit, and there is a high probability that it will be Will be dismissed outright.

What are the prerequisites for submitting a request for approval of a class action lawsuit?

Cannot be asked How to file a class action lawsuit Without knowing the prerequisites for filing a class action lawsuit, set forth in Sections 4 and 8 of the Class Actions Law.

Section 4(a):

A. They may submit to the court a request for approval of a class action as detailed below::

(1) A person who has cause of action or in a matter as stated in section (3)א), Which raises fundamental questions of fact or law that are common to all members of a group of people – on behalf of that group;

(2) A public authority in a claim or matter as stated in section (3)א), In the field of one of the public purposes in which the public authority is engaged – on behalf of a group of people who have the same claim or the same matter, Raises fundamental questions of fact or law that are common to all members of the group;

3) Organization in a claim or matter as stated in section (3)א), In the field of one of the public purposes in which the organization is engaged – on behalf of a group of people whose claim or matter raises substantial questions of fact or law that are common to all members of the organization, Provided that the court is satisfied that, In the circumstances of the case, There is difficulty in submitting the application by a person as stated in the paragraph (1) However, The Israeli Consumer Council as defined in the Israeli Consumer Council Law, 576"ח-2008, You will be entitled to submit a request for certification of a claim as a class action., Even if there is no difficulty in submitting the application by a person as stated in paragraph (1).

In certain cases, if it becomes clear during the course of the proceedings that the person wishing to represent the group of victims (the applicant) does not have a personal cause of action, the court will order his replacement. Although this possibility is subject to the court's discretion, the court will not rush to exercise its authority in this matter, especially if it is clear, or should have been clear, that the person who actually initiated the proceedings has no connection to the group of victims. In most cases, in such a situation, the court will deny the request for approval and will not order the replacement of the initiator of the proceedings (the applicant).

Article 8(a):

The court may approve a class action lawsuit., If he found that all of these had been met:

(1) The claim raises substantial questions of fact or law that are common to all members of the class., And there is a reasonable possibility that they will be decided in the lawsuit in favor of the group.;

(2) A class action lawsuit is the most efficient and fair way to resolve a dispute under the circumstances.;

(3) There is a reasonable basis to assume that the interests of all members of the group will be represented and managed in an appropriate manner.; The defendant may not appeal or seek to appeal a decision in this matter.;

(4) There is a reasonable basis to assume that the interests of all members of the group will be represented and managed in good faith..

Exemplary damages or damages without proof of damage

While this is not exactly a prerequisite for filing a class action lawsuit, it is certainly an important issue. Which may lead to the rejection of the request for approval of a class action, and therefore it is very important to be aware of this issue before considering and/or drafting the request.

Section 20(e) of the Class Actions Law states as follows:

The court will not award exemplary damages in a class action lawsuit., And he will not award compensation without proof of damage., Except in the claim as specifically specified 9 In addition to the second, However, the above does not prevent an award of compensation for damage other than financial damage..

That is, a class action lawsuit cannot be filed based on Example compensation Or compensation without proof of damage. Sample compensation or compensation without proof of damage are common in the Consumer Protection Law, the Tibi Law, the Technicians Law, and also in the Spam Law.

What makes these compensations unique is that they range in large amounts (between hundreds of shekels and thousands or even tens of thousands of shekels) and the injured party is not required to prove that he or she suffered any damage (hence the name of these compensations).

With the exception applicable to people with disabilities, a class action lawsuit based on these damages may be dismissed out of hand.

Checking the Class Action Registry before filing a class action lawsuit

The existence of a previous class action lawsuit on the same issue in which you wish to file a class action lawsuit may lead to a situation in which the court orders the deletion of your lawsuit (if any). Therefore, in order to save time and resources in preparing and filing a new lawsuit, it is worth checking whether Class Action Registry Refers to a previous lawsuit on the same subject.

In fact, this is not just a technical issue intended to serve the class plaintiff, but In duty which is stipulated in the Class Actions Law and also in the Class Actions Regulations. There are examples in court rulings where the courts have chosen to dismiss a request for certification out of hand in those cases where the applicant and his lawyer did not review and did not notify, as required, the court that there were additional requests for certification of class actions dealing with the same issue. In extreme cases, legal costs have even been awarded to the state treasury.

Section 5(a)(2) of the Class Actions Law:

Before submitting an application for approval, The applicant will check the register to see if a request for approval or a class action is registered there., It is pending., Which are the essential questions of fact or law that are common to the members of the group that arise in it?, All or some of them, identical or substantially similar to the aforementioned questions arising in his application for approval; The applicant found that an application for approval or a class action as mentioned above was recorded in the register., He will indicate in his request for approval its details..

Regulation 2(13) of the Class Actions Regulations:

In the application for approval, the litigant shall detail his arguments., Includes references, Including in these matters:

13. פAny other motion for certification or other class action in which the material questions of fact or law common to the members of the class arise, All or some of them, Identical or substantially similar to the questions raised in the request for approval, If found in the register;

If you do not follow the instructions mentioned above, and submit a request for approval of a class action lawsuit on a matter that is already being investigated by the court, chances are you will find that you worked for nothing and your lawsuit will not be resolved.

When is it appropriate and necessary to file an application for class action approval?

At this point, you already know that a class action lawsuit can only be filed when it involves a violation of law and damage that is relevant to a large group of people, when there are common questions of fact or law that are common to all members of the group, and when conducting a class action lawsuit is the most efficient and fair way to resolve the dispute.

But is it always worthwhile File a class action lawsuit, even when it is theoretically possible to do so? The answer is no.

A class action lawsuit is a very complex procedure that consumes a lot of time and resources. Therefore, before filing it, we need to examine who the defendant is facing. If the potential defendant is a large and established corporation that is acting in violation of the law, then there is no hesitation, and as long as you are equipped with sufficient evidentiary and factual infrastructure, it is worthwhile and necessary to file a class action lawsuit.

Filing a request for approval of a class action lawsuit against a small business or individual

Filing a class action lawsuit against a small business (e.g., a single-branch store) or an individual (e.g., a store owner) has become very common in recent years, especially when a class action lawsuit is filed regarding accessibility. One reason for this is that these proceedings are filed in the Magistrate's Court, where the fee for filing a class action lawsuit is much lower than in the District Court.

Before filing a class action lawsuit against a small business or individual, you should consider two main issues: 1. The chance that you will receive significant compensation in these cases is very low. 2. The courts do not like to conduct class action lawsuits against a small business or individual.

ניתן לראות דוגמאות רבות בפסיקות בתי המשפט לכך שניהול הליך ייצוגי נגד עסק קטן או אדם פרטי נתפשת לעיתים כדבר שאינו חיובי (ואף שלילי) בעיני בית המשפט. כך לדוגמה נפסק במסגרת ת"צ 24597-10-22 חיים סרור נ' אריאל רום השקעות בע"מ:

These first-hand insights of the Supreme Court must be borne in mind when we examine the class actions filed in court. This is also, but not only, the case where the defendants are small businesses, and even individuals, who may have committed a minor (and possibly even bona fide) violation of the provisions of the law. This is especially true when early recourse to them could have saved them many days and nights of financial and emotional distress after receiving a class action lawsuit filed against them in the District Court for millions of shekels.

…

The intention is not to block recourse to these procedures, even when the violation is minor, if the harm to the individual member of the group is likely to be great. However, this tool should be used wisely and cautiously, while considering whether early recourse is not preferable to the use of the doomsday weapon. Is it not appropriate to leave recourse to the court in a class action as a last resort after a brief attempt has been made to end the alleged violation, especially where the harm is not so great?

In this specific case, because the applicant did not first contact the business in advance before filing a class action lawsuit, the court denied him and his lawyer the compensation and fees, so they essentially wasted their time.

What preparatory steps should be taken to submit an application for class action approval?

If you have come this far, you probably understand that before submitting an application for approval of a class action lawsuit, you should carefully review and examine everything that has been written so far. At the same time, court rulings have expanded the duties imposed on the class plaintiff and his attorney. Failure to perform these duties may lead to a reduction in the payment paid to the class plaintiff and his attorney in the event that the application is approved and the lawsuit is accepted (in the best case scenario) or lead to the lawsuit being dismissed (in the worst case scenario).

Early contact with the defendant prior to filing a class action lawsuit

The purpose of early contact with the defendant is to inform the defendant of the violation of the law committed by him, in order to allow him to correct the omission before a class action lawsuit is filed against him. Currently, there is no obligation to make a prior application, except in cases where one wishes to file a class action lawsuit against an employer (in the Labor Court), and especially when there is a representative labor organization (according to the ruling of the National Court).

Early filing before filing a class action lawsuit is of great additional importance; such a filing, and a response to it, may lead to a situation in which you discover that you were wrong and that you have no cause of action at all, and if you had not filed a lawsuit with the defendant, you would have filed a class action lawsuit, conducted a full legal process (thereby causing a waste of judicial time and causing the defendant to pay a lot of money to defend against a class action lawsuit) and ultimately lost and paid very high legal costs.

Alternatively, an early filing, and a response to it, may reveal additional and substantial details to you that will assist you in the further course of action. These two reasons are sufficient to pursue any potential class action with an early filing, as its advantages outweigh its disadvantages.

Class action lawsuit against the authority

A class action lawsuit against an authority is different from a class action lawsuit against a company because the authority has a very significant benefit stipulated in Section 9 of the Class Actions Law, which does not exist when submitting a request for approval of a class action lawsuit against any other entity.

An authority may submit within 90 days from the date of submission of the application for approval Notice of terminationThe meaning of filing a cease and desist notice is that the authority informs the court that it stops collecting the payments it collected in violation of the law, but the benefit is that the authority does not have to return the money to the residents.

In such a situation, the court will order the rejection of the request for approval, but before that, it will decide on the issue of compensation and fees due to the applicant and his lawyer who filed the request for approval.

If the authority does not submit a cease and desist notice within 90 days, the proceedings against it will continue and the applicant will have to prove his claims.

Who do you contact to submit a request for class action approval?

As in any other field, to achieve the best result, you turn to the best expert you can find in a specific field. If you want to file a class action lawsuit, you certainly wouldn't turn to a lawyer who specializes in medical malpractice.

In order to file a class action lawsuit And succeed in it חייבים ליצור קשר עם עו"ד תביעות ייצוגיות מנוסה, אשר עוסק And updated in this area regularly. Regular updating in this area is extremely necessary, especially in light of the fact that important judicial decisions are rendered relatively frequently, and these decisions may place new requirements and conditions on the class plaintiff.

עורך דין תביעות ייצוגיות שהגיש תביעות בודדות ולא הגיע להשגים משמעותיים לא יוכל לייצג אתכם ואת חברי הקבוצה באותו צורה כמו עו"ד תביעות ייצוגיות שמגיש תביעות ייצוגיות באופן קבוע או מייצג באופן קבוע נתבעים במסגרת תביעות ייצוגיות, סיים תיקים בפשרות נאות לטובת חברי הקבוצה, הגיע למצבים בהם בתי המשפט אישרו את בקשותיו לאישור תובענות ייצוגיות, ואף ניהל תיקים עד למתן פסק דין סופי בתובענה.

Experience and knowledge in this field (as in other fields) may be The crucial difference Between a case ending in favor of the group members, And in handsome compensation to the class action plaintiff, and the rejection of the request and the charging of legal costs to the class plaintiff.

Why should you file a request for class action approval?

People who want to apply for class action certification can be divided into two groups:

1. People who see this process primarily as a financial venture and whose goal is to make money;
2. Principled people whose goal is to lead to the cessation of the violation of the law (and sometimes even to punish the company that violates the law), and financial reward is secondary for them.

It can be assumed that most people belong to the first group, but there is nothing wrong with that. Both the courts and the Attorney General have recognized the financial motive as a legitimate motive, as long as it is consistent with the best interests of the group members.

If there was no potential Earn large sums of money In a class action lawsuit, no class plaintiff would take on the risks involved in this legal process, and without class plaintiffs, the class action lawsuit would not take place at all.

How much money can be earned in a class action lawsuit?

Remember, you as class plaintiffs initiate the proceedings, but you are not the main focus of this proceeding. In a class action proceeding, you must always ensure the highest possible compensation for the members of the class, and why?

The courts award compensation to the class plaintiff, and fees to his attorney, depending on the benefit achieved for the class members. The higher the compensation for the class members, the higher the financial compensation that the class plaintiff can claim. In this way, the legal system tries to incentivize the class plaintiff to act in favor of the group members.

In class action lawsuits where the compensation to the group reaches millions of shekels, the compensation to the class plaintiff can range from tens of thousands of shekels to hundreds of thousands of shekels.

What expenses is the class action plaintiff expected to pay?

Legal costs after the request for approval of a class action lawsuit is rejected

החשש הגדול ביותר הכרוך בהגשת בקשה לאישור תובענה ייצוגית הוא דחיית הבקשה וחיוב התובע הייצוגי בהוצאות משפט. בעבר, לאחר הליכים ממושכים קבוצת תובעים ייצוגיים חויבה בהוצאות משפט בסך 350 אלף ש"ח.

In order to reduce the risk of the application being rejected and being charged legal fees (in legal proceedings, success can never be guaranteed 100%, and therefore it is always about reducing risks, not eliminating them), serious preparatory work must be done before filing a class action lawsuit.

Don't be tempted to file a class action lawsuit the day after publishing about some malfunction in a telecommunications company or a violation relevant toFood product labelingTypically, these types of claims end in dismissal, and some end in the request being rejected and the class plaintiff being charged legal costs.

Court fee

As of May 8, 2018, there is To pay a fee לפני הגשת בקשה לאישור תובענה ייצוגית. הגשת תביעה ייצוגית לבית המשפט השלום – אגרה בסך כ-9538 ש"ח (בעת הגשת ההליך משלמים רק 3577 ש"ח). הגשת תביעה ייצוגית לבית המשפט המחוזי – אגרה בסך כ-19,076 ש"ח (בעת הגשת ההליך משלמים רק 6557 ש"ח).

The amounts increase slightly each year and it is possible that by the time you read this article, the actual amounts will be higher.

In both cases, the entire fee is not paid immediately upon filing the class action lawsuit, but rather the fee is divided into two parts. Upon filing a class action lawsuit, a little less than half of the amount is paid, in both cases.

Class actions filed with the Labor Court are exempt from paying a fee. Class actions regarding accessibility and environmental hazards are also exempt from fees.

Lawyer's fees

payment Lawyer's fees Performed by the respondent as part of a class action, and only after approval by the court. The person initiating the action is not required to pay attorney fees to the attorney representing him.

Other expenses

Throughout the procedure, there are various expenses that are borne exclusively by the class plaintiff.For example; expert opinions, summoning witnesses, court errands, purchasing necessary equipment for managing the lawsuit, unique printing costs (in one of the cases handled in our office, it was necessary to print over 2,000 color photos - which involves a significant financial expense), and more.

In conclusion

A class action lawsuit is a very complex process that requires extensive preparation and testing before filing. This process is suitable for those cases where it can be proven that there is a large group of victims who were harmed by the same party in a very similar, to the point of being identical, manner.

A class action lawsuit cannot be conducted alone, similar to a small claim, but must be handled by a highly experienced class action lawyer.

A person who is successful in a class action lawsuit will be entitled to financial compensation that will be paid exclusively to him. The financial compensation depends greatly on the benefit obtained for the group of victims, and in some cases can reach amounts reaching hundreds of thousands of shekels, and in exceptional cases even more.

Frequently Asked Questions Regarding Filing a Request for Class Action Certification