Abstract

http://ssrn.com/abstract=1185365
 
 

Footnotes (104)



 


 



Bad Bargains: The Mistake of Allowing Cost-Benefit Analyses in Class Action Certification Decisions


Patrick Luff


University of Oklahoma College of Law; University of Oxford - Faculty of Law

March 28, 2009

University of Memphis Law Review, Vol. 41, p. 65, 2010

Abstract:     
It is often argued that class actions are unfair to businesses and individuals alike. In recognition of these complaints, it has been suggested that, in determining whether or not to certify a class action, the judge should weigh the perceived costs and benefits that the certification decision would produce. In fact, a rule proposed in 1996 would have required courts to consider the costs and benefits of a class action in deciding whether to certify a class. Despite this proposed rule's failure, courts continue to use a cost-benefit analysis in making their certification decisions. This Article demonstrates that the arguments that favor a cost-benefit analysis stage in class action certifications fail because they are based on insufficient or misguided criteria. This Article emphasizes that the correct criteria by which to judge class-certification decisions are deterrence of socially harmful conduct and individual compensation for wrongdoing. In assessing courts' use of cost-benefit analyses in class action certifications, this Article concludes that using such a test defeats the goals of compensation and deterrence, which are the proper ends of the class action device.

Number of Pages in PDF File: 29

Accepted Paper Series


Download This Paper

Date posted: July 29, 2008 ; Last revised: August 19, 2011

Suggested Citation

Luff, Patrick, Bad Bargains: The Mistake of Allowing Cost-Benefit Analyses in Class Action Certification Decisions (March 28, 2009). University of Memphis Law Review, Vol. 41, p. 65, 2010. Available at SSRN: http://ssrn.com/abstract=1185365

Contact Information

Patrick A. Luff (Contact Author)
University of Oklahoma College of Law ( email )
300 Timberdell Road
Norman, OK 73019
United States
University of Oxford - Faculty of Law ( email )
St. Cross Building
St. Cross Road
Oxford, OX1 3UJ
United Kingdom
Feedback to SSRN


Paper statistics
Abstract Views: 779
Downloads: 108
Download Rank: 147,018
Footnotes:  104

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo7 in 0.344 seconds