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

A class action lawsuit and a class action arbitration are similar in that they are both methods of handling multiple claims under the same legal umbrella. However, they differ in the way the claims are handled and the resolution is reached. A class action lawsuit is a type of lawsuit filed by a group of individuals, known as the “plaintiffs”, against one or more defendants. The plaintiffs are represented by one or more lawyers who argue the case on their behalf. The lawsuit usually seeks resolution through a settlement or a court judgement, and the results of the lawsuit can result in damages being awarded. A class action arbitration, on the other hand, is an alternative dispute resolution process. It is an out of court procedure where an impartial arbitrator or arbitral panel hears the claims of both parties. Each party presents their case to the arbitrator and an agreement is reached, usually an award of damages for the plaintiffs. Unlike a court judgement, the agreement reached in arbitration is binding, which means that it is almost impossible to challenge it in court. The key difference between a class action lawsuit and a class action arbitration is that class action lawsuits are handled by a court and are subject to higher burdens of proof, while class action arbitrations are private proceedings handled by an arbitration panel. Arbitrations are usually faster and less expensive than lawsuits, but can still provide fair compensation for the plaintiffs.

Related FAQs

What is the role of the court in a class action lawsuit?
What is the effect of class action damages on individual class members?
How do class action settlements compare to individual lawsuit settlements?
What is the procedure for class notice and opt-out in a class action lawsuit?
What is the role of lead counsel in a class action lawsuit?
How do I file a class action lawsuit?
What are class action federal rules of procedure?
What types of defenses are available in class action lawsuits?
What is an aggregate settlement in a class action lawsuit?
What is the difference between class action and single plaintiffs lawsuits?

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

Related FAQs

Related Blog Posts