Good question—and this week, Pleading Ignorance answers it. It’s a question a lot of people have: Can I still file a lawsuit if there’s already a settlement? I spoke with attorney J. Benton Stewart of Stewart Law, P.L.L.C. to better understand the in’s and out’s of class action settlements and when it’s best to file your lawsuit.
Before we can answer that question, we have to first understand how class action lawsuits and settlements work.
Class action lawsuits can be opt-in or opt-out lawsuits.
If they are opt-in, then you have to ask to be part of the lawsuit. Typically, with an opt-in class action, you have to submit a claim form indicating that you wish to be a part of the class action—you have to officially “opt in”. If on opt-in class action lawsuit settles and you weren’t part of the class, you’re still free to bring about your own lawsuit. If you were part of the class, then you can’t bring one of your own.
In an opt-out lawsuit, you’re automatically part of the class regardless of whether or not you meant to be—you have to tell the claims administrator that you don’t want to be part of the class before you’ll be taken out. In this situation, if you haven’t told them that you do not want to be part of the class and the lawsuit settles, you can’t bring your own lawsuit. Basically, if you’re included in a class that settles, either because you chose to be or because you didn’t opt-out, you can’t bring your own lawsuit.
Bottom line, if you think you may want to file your own lawsuit against the defendant in the class action lawsuit, you cannot have been a member of the class (ie, the plaintiffs) of the class action. Still with me?
Of course, there’s more to it than that because of how settlements normally work.
Once a settlement is announced, usually a pool of money is set aside to pay all the claims. Instead Read the rest of this entry »