Collo vs McDo

Legal concepts

The class action

A US procedure in which a few plaintiffs act on behalf of all. The decisive stage is not the judgment: it is class certification.

In brief

  • Governed by Rule 23 of the Federal Rules of Civil Procedure.
  • Four cumulative conditions (Rule 23(a)): numerosity (class too numerous to act individually), commonality (common questions), typicality, adequacy of representation.
  • For a damages action (Rule 23(b)(3)): the common questions must predominate, and the class action must be superior to other methods.
  • The judgment binds all members of the class — favourable or not. They can only request their exclusion (opt-out).
  • Any settlement must be approved by the judge, who checks that it is “fair, reasonable, and adequate” (Rule 23(e)).

Certification is the real issue. As long as the class is not certified, the defendant faces a single plaintiff; once it is certified, it faces thousands of people at once — and the financial risk becomes such that settlement is often unavoidable, regardless of the merits.

That is why procedural battles over predominance are so bitter. In franchise litigation, the question becomes: are the operators' situations similar enough to be judged together, or does each agreement, each restaurant, each local market require individual examination? The defendant always argues for the second answer.

Sources

External sources.

  1. Federal Rules of Civil Procedure, Rule 23 — Class Actions — Cornell Legal Information Institute

Where this comes up in the case file

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