Understanding Efficiency and Representation as Objectives of a Class Action

Abstract

The author examines the legal nature of class actions using a teleological approach. The paper provides an overview of the prevailing ideas and discussions in the literature about the targeted orientation of a class action. In particular, the two most significant goals are described in detail: efficiency and representation. The author emphasizes that structurally they are two-component: the goal of efficiency is related to the recovery of compensation and monetary restraint; the goal of representation is related to the accessibility of justice and the adoption of new legal norms. Within the framework of the analysis of the provisions of the legal doctrine, the author substantiates that giving priority to a particular purpose of a class action significantly limits the understanding of its legal nature and does not contribute to its assessment as an integral procedural and legal instrument. In addition, the author draws attention to the economic aspect of a class action, which, by combining separate claims related to similar circumstances, makes the initiation of the process financially expedient for plaintiffs, whose court costs are evenly distributed among all members of the group. On the other hand, class actions contribute to reducing the costs of defendants who may oppose several claims in a single trial. The burden on the judicial system is also reduced due to a smaller number of initiated cases. The paper argues that the objectives of a class action should be considered in their unity. This approach allows us to turn to a broader understanding of the class action and to identifying its key features, some of which relate to efficiency, and some – to the goal of representation. The author concludes that only a coordinated understanding of the objectives of a class action can become the basis for a clearer understanding of its legal nature and improvement of procedural legislation.