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Let's say there's a class action lawsuit, regarding specific device, called aBanana.

Normally, a class member would be someone who bought and used an aBanana device, and was affected by some issues with it.

However, in some cases, the device is bought by a company for an employee, and used by that employee.

How would class action membership work in this case?

  • Would the employee (who used the device, and presumably, was impacted by whatever issues the class action lawsuit was about) be a member, even though the device was bought and paid for by the company employing them?
  • Would the company be a class member because they were the device's legal owner? (despite - as a legal entity - NOT being directly impacted by the device related issue which spawned the CA lawsuit)?
  • Neither? Some other option? Depends on what a judge had for breakfast?
Mary
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user0306
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2 Answers2

19

The nature of the claim will drive the class definition. For some claims, it may make sense to define the class in terms of device owners (e.g. a breach of contract claim). For other claims, it may make sense to define the class in terms of users (e.g. igniting batteries).

The proposed class will be defined in the the complaint and motion for class certification.

The certified class will be defined in the certification order.

See Rule 23(c)(1)(B) of the Federal Rules of Civil Procedure:

An order that certifies a class action must define the class and the class claims, issues, or defenses, and must appoint class counsel under Rule 23(g).

It will be very clear who is a member of the class.

Another answer suggests that if the company who bought the defective devices failed to pay their own employees for the period when the defective devices affected operations, that this would somehow be "damage" that the employees could claim against aBanana. That is false. That scenario would not give the employee a cause of action against aBanana — only against the employee's employer. Failure of an employee's employer to pay wages would never give the employee a cause of action against aBanana. There are ways an employee might have a cause of action against aBanana (e.g. a dangerous good), but not because their own employer failed to pay them.

Jen
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It depends on who suffered damage. The employer likely suffered the purchase price as damages. Now if you used that aBanana to do your job, wasted two days but your employer paid you, then you likely suffered no damage, but your company suffered two days salary in further damages. If they refuse to pay you for the two wasted days, you suffered damages. If the company pays half the agreed rate, you both suffer damages.

So one, or the other, or both suffered damages and can join the class action.

gnasher729
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