What is the difference between a direct action lawsuit and a class action lawsuit?
A direct action lawsuit is when an individual sues an entity on their own behalf. This individual is known as the plaintiff and the entity being sued is known as the defendant. The goal of a direct action lawsuit is to recover damages that the individual sustained due to the defendant’s misconduct. On the other hand, a class action lawsuit is when a group of people, or a class, come together to sue a single defendant. In a class action lawsuit, the group of plaintiffs must all have a similar type of claim against the defendant. The goal of a class action lawsuit is to recover damages for the entire group of plaintiffs, rather than just for an individual plaintiff. In California, class action lawsuits are more common because the California Supreme Court has ruled that class action lawsuits are the best way to resolve common claims against a defendant. Because of this ruling, it is more beneficial for an individual to join a class action lawsuit instead of suing the defendant alone. Class action lawsuits in California are useful for resolving large disputes between many persons and entities. By consolidating the claims of the multiple plaintiffs into one lawsuit, it reduces the cost and time that would be used to resolve the individual claims. Class action lawsuits also give the plaintiffs more power in the negotiation process, as they are able to settle their claims as a whole.
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