Class Action In Canada

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Class actions are a relatively recent feature and litigation trend of the Canadian legal system and the range of cases is continually growing. It refers to an action whereby one or more claimants can seek collective relief for themselves and on behalf of other individuals who have similar claims. They pose new challenges for defendants who must now face a large damage penalty.
During the recent years, there have been many areas of law such as, consumer protection law, defective products and manufacturer’s liability, employment law disputes, shareholders’ disputes, major environmental accidents, and franchise law that have benefited from this approach to litigation.
Defective or dangerous products are the cause of thousands of injuries every …show more content…

In 2012, one of the largest companies in Canada agreed to settle a class action lawsuit brought by 1000 Canadians who used the drug Vioxx, known for arthritic pain. It was used by many people since 1999, but it was later known that many consumers who used Vioxx had suffered from heart attacks and strokes. The plaintiffs argued that Merck knew about it, but they did not inform their customers about its adverse effects. Merck agreed to pay $21.8 to $36.8 million to settle this particular class action in Canada. Here, again we can see that class actions have been beneficial, since claimants received damages, and there has been a large group of people with a similar claim thus leading to a stronger negotiating …show more content…

Thus, it is reasonable for consumers to be able to afford to litigate the case. In addition, a class action law suit is decided by only a judge, so inconsistent verdicts do not become a problem. The litigation takes less court time, thus leading to greater judicial efficiency. The most important advantage is that all plaintiffs have the opportunity to receive damages caused by the defendant. When the class wins the lawsuit, all members in the class action receive some payment, even if the amount is not enough to cover the damages. However, in the absence of a class action, if the defendant is facing several lawsuits, he would pay greater compensation for the same injuries to earlier filing plaintiffs as compared to the later filing plaintiffs. Therefore, this particular risk does not exist in class action

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