09 lezione (class action)

8/19/2019 09 Lezione (Class Action)

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INTERNATIONAL LAW

PARMA UNIVERSITYInternational Business and Development

International Markets and Organizations Law

Prof. a!riele "atalini

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CLASS ACTION:U.S. AND ITALYAPPROACHES

International markets and organisations lawProf. Gabriele Catalini


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DEFINITION

In law, a class action or a

representative action is aform of lawsuit in whih a largegrou! of !eo!le olleti"el#

bring a laim to ourt and$or inwhih a lass of defendants is

being sued.


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%&'TO(&

) Meieval E!rope: England **+- reord of afew indi"iduals re!resenting a large grou! of!eo!le in legal suits.

) "irst S!it: */01 a Disart "s. Otes ase.) R!le #$: *2//- 3.'. law first introdued grou!

litigation) R!le %$: allowed absent !arties to be

re!resented as members of the !roseutinglass.

) R!le &%: (ule /2 beame (ule +/ and 4o!t out5

was introdued) Private Sec!rities Liti'ation Re(or) Act* o(

+,,-: new rules in seurities lass ationlawsuit.

) Class Action "airness Act o( &-: e6!ansion

of federal 7urisdition o"er man# large lass8ation lawsuits in the 3nited 'tates.


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3.'. FEDE(9: C:9'' 9CTION'

) Class ation lawsuits ma# be broughtin federal ourt if the laim arisesunder Federal (ules of Ci"il Proedure

(ule +/ and +2 3.'.C.9. ; *//+


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5C9NT> C%9(9CTE(I'TIC'

+ Numerosity 8 the lass must be so large as to makeindi"idual suits im!ratial

& Commonality 8 there must be legal or fatual laimsin ommon

% Typicality 8 the laims or defenses must be t#!ial

of the !laintiffs or defendants# Adequacy of Representation 8 the re!resentati"e

!arties must ade?uatel# !rotet the interests of thelass

-.

ommon issues o!!osed to indi"idual fat8s!eifionflits between lass members and the defendants

/. lass ation, instead of indi"idual litigation, is asu!erior "ehile for resolution of the dis!utes athand

http://atlas.nrcan.gc.ca/sites/english/maps/reference/international/usa/map.jpg


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'T9TE C:9'' 9CTION'

) 'ine *1/2, man# states ha"eado!ted rules similar to the F(CP

) %owe"er, some states ha"e i"il!roedure s#stems whih de"iatefrom the federal rules

) 'ome states, do not !ro"ide foran# lass ations, while others, limitthe t#!es of laims that ma# bebrought as lass ations.

http://atlas.nrcan.gc.ca/sites/english/maps/reference/international/usa/map.jpg


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Ho0 oes a Class Action s!it 0or12

Step +- drafting a om!laint

filing it in ourt

4ser"ing4 on the defendants

Step &- defendants answer or

hallenge the om!laint

Step %- a !eriod of 4diso"er#4 takes !lae


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Ho0 oes a Class Action s!it 0or12

Step #- the !laintiff files motion toertif# a lass ation.the defendants will file

ob7etions to ertifiation.

the Court will ha"e a hearing.

If !laintiffs win, the ase will be ertified.

Step -- Notie about member@s rights and deadlines for 4o!ting out4

Step /: Trial or 'ettlement


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CLASS ACTION IN ITALY


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E3(OPE' 9TTIT3DE FO( T%E C:9''9CTION

The European Consumer Commissioner:

5The old ontinent will ne"er 5go

down Athe 9merian lass ationBroad> with its 5to6i oktail> ofontingen# fees, !uniti"e damages,

and !retrial diso"er#>.


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#IST$RY

% &'() * t+e first Italian de!ate too, pla-e

% )&)/ 0anuar1 &st * t+e new onsumer lassation law beame effeti"e

% Italian onsumer assoiations announedthe# would launh lass ations for some0,000 small Italian in"estors who laimthe# ha"e been 5heated> b# banks whosold them 9rgentinian bonds


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Other !artii!ants of lass ation


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T%E TE('

The Italian law has no retroati"eeffet, The Class 9tion 9t allowslaims based on torts ourring

a(ter A!'!st +-3 &,


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2IRST RESU3TS

In less than a #ear, si6 signifiant lass ationlawsuits ha"e been filed against both Italianand foreign defendants, making Ital#@s numberof lass ation lawsuits high in om!arison toother ountries with reentl# introdued lassation laws.

9t least two of the ases seek e6tremel# high

damages, totaling H.+ billion together


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2EATURES

T+e -lass a-tion la4 is t+e first la4 in Ital1 to

provide for monetar1 dama5es in a -lass a-tion/ as

previous la4s onl1 allo4ed for in6un-tions/ mar,in5

e7traordinar1 -+an5e in t+e Italian liti5ations1stem.

T+ese la4suits are limited to four t1pes of -ases8

%-ontra-ts/

%produ-t lia!ilit1/

%anti*-ompetitive 9anti*trust: pra-ti-es/

%and unfair -ommer-ial pra-ti-es.


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T#E DI22EREN"E 2R$M T#E US 3A;

The law differs from the 3.'. Federal(ule of Ci"il Proedure +/- in a number of areas, e.g., more

restriti"e lass ertifiation !roess an 5o!t8in> basis no diso"er# absene of !uniti"e damages.


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NEATIVE TRENDS

Consumer assoiations are !roati"el# looking for lassation o!!ortunities and are ad"ertising to attrat and 5reruit> !otential !laintiffs. Jut the# are not atual!laintiffs.

'o it is not lear- %OK and 9T K%9T (9TE the onsumer assoiationswill be 5om!ensated> for their lass ation work

%OK and %OK 3C% the# will !a# the onsumers

Do the onsumer assoiations will ad"oate thes!eifi interests of the lass of !laintiffs the# re!resent,or will !ursue their own interests and$or the interests oftheir members as a wholeL


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WHO MAY FILE?

Entities that can act on ehal! o!

the "lainti!! 8

% "onsumer asso-iation or -ommittee 4it+nation4ide presen-e

% "onsumer


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The "roceeding

#$ %tage8 Admissi!ilit1The class action is dee&ed inad&issile i! 8

% T+e -laim is unfounded

% T+ere is -onfli-t of interest% T+e ri5+ts infri5ed upon are not

+omo5enous

% T+e lead plaintif is una!le to ade=uatel1represent t+e interest of t+e -lass


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#$ %tage' Ad&issiilit(

T+e lead plaintiff must !e a -onsumer

T+e lead plaintiff must +ave >an interestin t+e suit?

The "hase ends with a co)rt decision


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*)licit( and o"t+ins

% Pu!li- dissemination of t+e admissi!ilit1

findin5

% A deadline for optin5 in is settled

% Mem!ers must affirmativel1 opt in to t+e

-lass

% De-ision on lia!ilit1 and dama5es -annot !e -+an5ed after t+e optin5 in.


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@ Sta5e' Liailit( and ,a&ages

% 3ia!ilit1 and dama5es are determined

The co)rt s"eci!ies8% Dama5e amount

% Uniforml1 appli-a!le -riterion for ea-+

individual -laim

% No provision for punitive dama5es


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Final considerations

% Italian -onsumer asso-iation -is a -is US

plaintiff la4 firms

% Italian -onsumer asso-iation +ave t+e

possi!ilit1 to s+ape t+e la4

% What.s ne/t?


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09 lezione (class action)

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