The Fairness in Class Action Litigation Act of 2015 has been sent to the House or Senate for consideration. The Act introduced is summarized in only two sentences, but it could have a large impact.
Fairness in Class Action Litigation Act of 2015
Amends the federal judicial code to prohibit federal courts from certifying any proposed class unless the party seeking to maintain a class action affirmatively demonstrates through admissible evidentiary proof that each proposed class member suffered an injury of the same type and extent as the injury of the named class representatives.
It defines “injury” as the alleged impact of the defendant’s actions on the plaintiff’s body or property.
Let’s look at franchisee class actions against franchisors. While franchisees may claim the same type or injury [for example a franchise disclosure violation or a breach in the implied duty of good faith and fair dealing], will franchisees have the same extent of injury? Will all franchisees alleging a disclosure violation have the same losses? Could one franchisee have suffered more monetary damages than another? The answer is probably yes. How many times are franchisee positions and injuries alike- the same?
The Act is not law yet. It is on the long road to enactment. We will keep you posted.