How does a class action lawsuit differ from a class action arbitration?
A class action lawsuit is a legal process by which a large group of people, called “plaintiffs”, bring a claim against a defendant (usually a person or a company) for damages due to a wrongful act. The claim is filed in a court of law, with the plaintiffs all represented by one or more attorneys. The goal of a class action lawsuit is to get justice for the plaintiffs as a group. On the other hand, a class action arbitration is a dispute resolution process similar to a lawsuit, except that an arbitrator, rather than a court of law, presides over the case. In arbitration, the plaintiffs and defendant each present their case to the arbitrator, who then makes a ruling. The ruling is final, meaning that, unlike in a lawsuit, there is no appeal process. The major difference between a class action lawsuit and a class action arbitration is in the outcome. The goal of a class action lawsuit is to obtain damages, while in an arbitration, the goal is typically to reach an agreement or settlement between the parties. Another difference is the cost: class action lawsuits often have high legal costs, while class action arbitrations are typically much less expensive. Finally, class action lawsuits are very rarely allowed in California, whereas arbitration may be agreed upon by the parties involved.
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