Third, class arbitration greatly increases risks to defendants. Informal procedures do of course have a cost: The absence of multilayered review makes it more likely that errors will go uncorrected. Defendants are willing to accept the costs of these errors in arbitration, since their impact is limited to the size of individual disputes, and presumably outweighed by savings from avoiding the courts. But when damages allegedly owed to tens of thousands of potential claimants are aggregated and decided at once, the risk of an error will often become unacceptable. Faced with even a small chance of a devastating loss, defendants will be pressured into settling questionable claims.
—Justice Scalia delivers the opinion of the Court, and a knife in the back of class-action suits. [more inside]
posted by kipmanley
on Apr 27, 2011 -
Another class action suit, another lousy settlement.
Are or were you a member of Netflix? Sign up for your benefits under the class action settlement, and receive a free upgrade (or for former members, a free month) of service. That is one whole extra DVD at a time per month. Doesn't sound so hot? It gets better. The next month, they'll keep you on the upgraded plan and raise your bill to match it! Class action settlement, or class action fleecing?
posted by jmccorm
on Nov 2, 2005 -
Who here hasn't been a bit short before payday?
Jacob Ayrton of Calgary took out a payday loan of $500. Two weeks later he owed Payroll Loan Canada $606.32
(a $95 "brokerage fee" and 59% interest for a whopping 15,000% per annum charge.) Yesterday, an Alberta judge certified a class-action suit against so-called payday lenders with Mr. Ayrton as lead complainant. "These companies really exploit people who are vulnerable," said
his lawyer. A fast-growing franchise opportunity for investors, payday loan operations are facing increased scrutiny in Canada
and the U.S. (NC
posted by docgonzo
on Apr 27, 2005 -