What are class action suits?
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A class-action suit is a legal action or claim that allows one or many plaintiffs to file and appear for a group of people with similar interests. Such a group forms a “class”.
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A class-action suit derives from representative litigation to ensure justice to the ordinary individual against a powerful adversary.
Class Action Suits Vs Public Interest Litigation(PIL)?
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A crucial difference is that, unlike a class action suit, a PIL cannot be filed against a private party.
What has deterred the development of class action suits in India?
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Underdeveloped system of torts: A tort occurs when someone commits a wrong against another person. Tort law allows individuals who have had a wrong committed against them to claim damages against the person who has committed the wrong.
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Lack of contingency fees: The rules of the Bar Council of India do not allow lawyers to charge contingency fees, i.e., a percentage of the damages claimants receive if they win a case. This disincentivizes lawyers from appearing in time-consuming cases that class action suits inevitably are.
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Third-party financing mechanisms for litigants: Since litigation costs are high, class action suits can be made easier by allowing external parties to fund or sponsor the cost of litigation.