How does a class action lawsuit differ from a class action arbitration?

A class action lawsuit and a class action arbitration are both ways of resolving legal disputes but they are different processes. In a class action lawsuit, a group of people who have suffered a similar harm, known as a class, collectively bring a claim against a defendant. A single person, known as a named plaintiff, is usually chosen to represent the class. The court then reviews the claim and if it’s successful, the court may award damages on behalf of the entire class. In contrast, class action arbitration is a form of alternative dispute resolution (ADR) that is usually chosen by the parties instead of a lawsuit. It is a type of private dispute resolution process that is usually simpler and quicker than a court trial. A neutral third party, known as an arbitrator, hears the evidence and arguments from both sides and then makes a decision. The decision is binding on the parties and is only enforceable in a court of law if both parties agree to it. In New York, class action lawsuits and class action arbitrations offer the same types of remedies that the court could issue. These include damages, injunctions, and other types of relief. The main difference is the process used to resolve the dispute. Class action lawsuits are handled in a court of law while class action arbitrations are handled out of court.

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How does a class action lawsuit differ from a class action arbitration?

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