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TLPJ Launches Special Project To
Preserve Class Actions
Corporations Banning Class Actions
To Avoid Accountability for
Cheating and Discriminating Against Consumers and Employees
Arthur H. Bryant |
Trial Lawyers for Public Justice (TLPJ), a national public
interest law firm, is launching a major new project
– The Class Action
Preservation Project –
to fight a growing attempt by corporations to deprive consumers
and employees of their legal rights.
Throughout America, corporations are trying to avoid
accountability for cheating and discriminating against their
customers and workers by slipping class actions bans into the
fine print of their form agreements. The Class Action
Preservation Project will battle this growing threat to
Americans’ rights.
"Corporations are trying to write their own ‘get out of jail
free’ cards by slipping class action bans into their form
agreements," said TLPJ Foundation President Thomas M. Dempsey of
Los Angeles. "They hope no one will notice until it’s too late.
We all have to stop them or justice can never be done."
"Preserving class actions is essential," said TLPJ Executive
Director Arthur H. Bryant. "In many cases, class actions are the
only way justice can be done. Brown v. Board of
Education was a class action. So are numerous consumers’
rights, civil rights, workers’ rights, antitrust, securities,
anti-discrimination, and toxic pollution cases. If class actions
are eliminated, many of our rights will be lost."
Class actions are lawsuits brought on behalf of hundreds,
thousands, or even millions of people cheated, discriminated
against, or mistreated in the same way by corporations or the
government. In most such cases, if class actions are barred, the
wrongdoers will get away scot-free and the victims will receive
nothing at all.
Recognizing this fact, employers, credit card companies,
banks, phone companies, cell phone providers, mortgage
companies, insurers, companies selling on the Internet, and
others are increasingly inserting class action bans into their
form agreements. They claim that people "agree" to these bans
– which
they call "class action waivers" –
simply by using their credit cards, cell phones, or keeping
their jobs.
This growing threat to Americans’ rights was documented last
year in "Opting
Out of Liability: The Forthcoming Near-Total Demise of the
Modern Class Action," by Benjamin N. Cardozo Law School
Professor Myriam Gilles in The Michigan Law Review.
"In the ongoing and ever-mutating battle between plaintiffs’
lawyers and the protectors of corporate interests, the corporate
guys are winning because they have developed a new set of tools
powerful enough to imperil the very viability at class actions
in many – actually, most – areas of the law," wrote Professor
Gilles. "In fact, I believe it is likely that, with a handful of
exceptions, class actions will soon be virtually extinct."
TLPJ’s Class Action Preservation Project will (1) challenge
attempts to ban class actions; (2) fight efforts to improperly
limit class actions, including through court decisions, legal
rule changes, and mandatory arbitration; (3) educate the public
about the value of class actions and the dangers to them; and
(4) battle illegal settlements and other abuses that threaten
class actions' integrity or preservation. Professor Gilles will
advise the Class Action Preservation Project.
TLPJ has already won the two leading cases striking down
class action bans,
Ting
v. AT&T before the U.S. Court of Appeals for the Ninth
Circuit in 2003 and
Discover Bank
v. Superior Court before the Supreme Court of California
in 2005. In the last two months, TLPJ argued challenges to class
action bans before the Supreme Court of Washington in
Scott v.
Cingular Wireless and the Supreme Court of New Jersey in
Muhammad
v. County Bank. The U.S. Court of Appeals for the First
Circuit and courts in Alabama, California, Florida, Illinois,
Massachusetts, Missouri, Ohio, Pennsylvania, and Washington have
also thrown out class action bans in other cases.
In contrast, the highest courts of Hawaii, Maryland, North
Dakota, and Washington, D.C., have all enforced class action
bans. So have lower courts interpreting the law of Alabama,
Arizona, Colorado, Delaware, Florida, Georgia, Illinois, Kansas,
Louisiana, Michigan, Nevada, New Hampshire, New York, Oklahoma,
Pennsylvania, South Dakota, Tennessee, Texas, and Washington.
And last month, Utah passed the first law in the nation
validating class action bans in consumer credit agreements.
TLPJ prosecutes a broad range of individual and class action
cases. For the past decade, it has also operated a special
project to prevent class action abuse – recently challenging a
proposed
Netflix nationwide class action settlement that would have
left Netflix better off – and many of its customers worse off –
than if no suit had ever been filed. That work will continue as
part of the Class Action Preservation Project.
The Class Action Preservation Project is part of TLPJ’s
Access to Justice Campaign, designed to expose, fight, and
defeat the wide-ranging attacks on the right to a day in court
in America – including federal preemption, mandatory
arbitration, class action bans and abuses, court secrecy,
attacks on the right to counsel and jury trial, and
unconstitutional legislation and Administration actions. For
information about the Access to Justice Campaign, the
law review article quoted above, articles and
press releases
about the cases cited above, and
briefs in
those cases, visit
www.tlpj.org.
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