What is the difference between a settlement class and a damages class?

A settlement class and a damages class in New York are two types of class action lawsuits. A settlement class is formed when a group of individuals all agree to settle a dispute with the defendant without going to trial. The settlement agreement will include a payment of money or other compensation to the class members in return for settling the dispute. Settlement classes are often used when the amount of damages that could be awarded in a trial would be too small for the group to take the time to pursue. A damages class is a group of individuals who believe they have suffered losses due to the actions of the defendant. This type of class is usually created when there is a lot of proof that the defendant caused losses to the entire group. In this type of case, the class members are often seeking to be compensated for their losses through a monetary award. This award may include payment of medical bills, lost wages, or other damages that the class members may have suffered. The main difference between a settlement class and a damages class is that in a settlement class, the parties are required to agree to a resolution without going to trial, while in a damages class, the parties go to trial and the jury determines a verdict. The jury will then award damages to the class if the group has proven their case.

Related FAQs

What is the difference between a class action and a collective action?
What are the risks of filing a class action lawsuit?
How are class action settlements distributed?
Can a class action lawsuit be dismissed?
What are the requirements to file a class action lawsuit?
What type of discovery is available in a class action lawsuit?
What is an opt-in class action lawsuit?
How are attorneys’ fees paid in a class action settlement?
What is the role of the class action counsel?
How do I file a class action lawsuit?

What is the difference between a settlement class and a damages class?

Related FAQs

Related Blog Posts