The answer depends on the nature of
the suit and your own individual
circumstances. Often, class actions seek
recovery for a large group of people, but
individual damages may be small. For
instance, if a mortgage company is
improperly charging interest, and as a
result every class member paid $100 more
than he or she should have been charged, the
cost of litigation may make it impractical
to file such a case individually. On the
other hand, if you have substantial damages
and a serious claim, you should talk to a
lawyer about whether to file your own
lawsuit.
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Can I be bound by a
settlement or judgment of a class action?
Yes. If the court decides the
underlying legal proceedings were fair, all
absent class members are generally bound by
the judgment or settlement of a case. But if
the lawsuit is primarily to recover money,
absent class members are entitled to notice
and an opportunity to "opt out" (exclude
themselves) from the proceedings. If a
person opts out, he is not bound by any
judgment or settlement of the class action.
If a person opts out, he may be free to
bring a claim for damages individually. When
a class action is for declaratory or
injunctive relief, notice isn't required to
bind absent class members and the court may
not allow a person to opt out.
