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EU to relaunch debate on class-action lawsuit plan
International | 2010/10/12 01:40

The European Commission will relaunch a debate next month on a controversial plan to help consumers launch class-action lawsuits to seek compensation for anti-competitive practices, according to a Commission document.

Collective redress makes it easier for small claimants in cross-border disputes to take action by allowing a large number of small claims to be bundled and brought to court by a third-party representative, such as a recognised consumer organisation.

According to European Commission figures from 2008, "76% of consumers would be more willing to defend their rights in court if they could join together with other consumers".

Financial services (39%), telecoms (12%), transport (8%) and package tourism (7%) were identified as the sectors in which consumers find it most difficult to obtain redress for mass claims by a study carried out by the EU executive.

But the proposals were shelved after criticism from companies worried about US-style class-action lawsuits and the possibility of hefty punitive damages. Class actions are rare in Europe.

Interested parties will be able to give their views during a consultation that will run until the end of February, the document showed.

In a May report commissioned by European Commission President José Manuel Barroso, elder statesman Mario Monti said it should be easier for victims of unfair business behaviour to be compensated in order to boost consumer confidence in the single market.




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Class action or a representative action is a form of lawsuit in which a large group of people collectively bring a claim to court and/or in which a class of defendants is being sued. This form of collective lawsuit originated in the United States and is still predominantly a U.S. phenomenon, at least the U.S. variant of it. In the United States federal courts, class actions are governed by Federal Rules of Civil Procedure Rule. Since 1938, many states have adopted rules similar to the FRCP. However, some states like California have civil procedure systems which deviate significantly from the federal rules; the California Codes provide for four separate types of class actions. As a result, there are two separate treatises devoted solely to the complex topic of California class actions. Some states, such as Virginia, do not provide for any class actions, while others, such as New York, limit the types of claims that may be brought as class actions. They can construct your law firm a brand new website, lawyer website templates and help you redesign your existing law firm site to secure your place in the internet.
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