For a class-action suit to go forward, a judge must certify that the people who are claiming they were wronged by a company have similar claims. Without the certification, a class-action suit can’t be tried.
Under current law, the plaintiffs in a case can appeal a judge’s decision not to certify a group, but the company defending the claim cannot appeal a decision to the contrary.
Tran and Sullivan see this as an uneven playing field for business because the plaintiffs have a right that the defendants don’t. But Cogan says the disparity levels the playing field.
Class-action suits are usually brought by hundreds or even thousands of people who claim they have been cheated out of a small amount of money or have been treated inequitably in some other way by a big company, Cogan said. If a judge doesn’t certify them as a class, then it becomes impossibly expensive for them to pay the hefty cost of legal fees.
“Typically defendants in these cases — drug manufacturers or banks — can well fund a defense of a class action, whereas it doesn’t work the other way,” Cogan said.
Many other states already have the same type of law in place that Tran is proposing, Sullivan said. Not following suit could result in businesses leaving California and moving elsewhere to avoid the threat of protracted legal battles.
Even though the companies defending themselves may have more resources, “it should not be relevant legally who has what money on what side,” Sullivan said.
— Alan Blank
