Why Are There So Many Lawsuits & Settlements for California Residents Only?
One of the top questions we receive is: Why do so many class action lawsuits and settlements we cover apply only to California residents? Many of our readers are frustrated to find out that they aren’t able to participate in a class action just because they don’t live in California.
One reason is that California laws are some of the most supportive in the nation for class action lawsuits. Some states have very restrictive rules that make it hard for plaintiffs to file class action lawsuits. California is less restrictive than most when it comes to providing notice to putative Class Members, certifying a Class, and calculating damages that may be paid to Class Members. This means that cases are less likely to get dismissed and therefore they’re more likely to pay out following trial or settlement.
California also has some of the most generous labor laws in the country, which leads to a higher number of employment-related class action lawsuits and settlements in the state than in any other state in the country. [See: California Wage & Hour Class Action Lawsuit Investigation.]
In California, plaintiffs in a class action lawsuit are able to discover the names and contact information of potential Class Members, with some exceptions. This ability makes it easier for plaintiffs to identify other potential plaintiffs or other individuals who may be able to assist in the litigation.
Another reason class action lawsuits are popular in California is that the courts are less likely to uphold arbitration clauses in contracts. Arbitration clauses typically force consumers who have legal complaints against a company to pursue arbitration rather than file a class action lawsuit against the company. The state’s Supreme Court has invalidated certain arbitration provisions that it has found to be unconscionable or contrary to the state’s public policy.
Can I File a Class Action Lawsuit in California if I Live in a Different State?
It is possible for an out-of-state plaintiff to file a class action lawsuit in California—but only if certain factors are met. There must be a specific reason to choose California as the venue for your lawsuit. If the defendant’s headquarters are located in California or if your injury occurred in the state, you might be able to file in California—but you’ll have to convince a judge it belongs there.
If you’re thinking about filing a class action lawsuit, you can submit your information to our network of attorneys using our Start a Class Action feature. They will review your case and, if you qualify, you will be contacted for a free legal consultation regarding your claim.
How Can I Find Class Action Settlements I Qualify For?
Our team scours the Internet each week looking for open class action settlements that pay cash and offer other benefits to consumers and place them in one convenient place on our website, under the Open Settlements tab. You can also sign up for our free e-newsletter to receive new settlements in your inbox each week.
Related FAQ Articles:
How Does a Class Action Lawsuit Work?
Why File a Class Action Lawsuit?
