Class Actions Brief Blog

Statutes defining minimum damages per violation, such as many consumer protection laws, often inspire class actions. Plaintiffs argue that certification of such classes is easier because they avoid issues of individualized damages. But in the aggregate, these damages can become immense. As a recent case from the Ninth Circuit shows, however, the Constitution places outer limits on the damages available in these class actions.

Due Process Limits on Aggregate Statutory Damages

Wakefield v. ViSalus Inc., 51 F.4th 1109 (9th Cir. 2022) involved a class action under the Telephone ...

It is no secret that many businesses minimize risk by requiring arbitration of disputes on an individual basis. The exposure created by a single claim pales next to that presented by a class claim, asserted under Rule 23, on behalf of numerous individuals. To implement this mitigation strategy, businesses typically include in their agreements an arbitration provision, coupled with a waiver of the right to bring a class or collective action.

The United States Supreme Court has generally validated this approach. Even when the cost of asserting an individual statutory claim far ...