Class Action: How to increase claim rates?

Author

Sylvie De Bellefeuille, Élise Thériault, Josiane Fréchette

Organization

Option consommateurs

Published

2017

Summary

A class action is a procedure by means of which a person or an organization can institute legal recourse against one or more defendants in their own name or on behalf of a group. Whenever a favorable judgment is reached on a class action request, or when the court approves an amiable settlement agreed upon by the parties, a claims process is set in motion to permit class members to apply for compensation. Generally, only a fraction of those who are eligible actually claim compensation. This fact raises the question of the effectiveness of the class action law suit as a means of ensuring compensation. The aim of our research was to determine how to improve the claim rate of class actions.
Focus groups held in Montreal and Toronto showed how Canadians perceive the factors that might affect their decision to file a claim when a distribution of funds to class members is announced. Options consommateurs compiled a list of the class actions for which a distribution protocol has been developed over the past five years and for which an individual distribution took place in Canada.
The findings of this study demonstrate that there are many factors affecting the class action claim rate. Among these are the notices to members, which should be clear and concise, the claims process, which ought to require fewer steps and supporting documents, and the judges’ use of their discretionary powers. This research shows that barriers still exist today when it comes to the availability of class action data in Canada. As long as all the information, including that related to the claim rate, remains unavailable to the public, it will be difficult to clearly establish the factors likely to affect the claim rate. In addition to significantly reducing access to justice, such a process runs counter to the rationale behind collective action.

This document is available in the following language(s):

Third-Party Information Liability Disclaimer

Some of the information on this Web page has been provided by external sources. The Government of Canada is not responsible for the accuracy, reliability or currency of the information supplied by external sources. Users wishing to rely upon this information should consult directly with the source of the information. Content provided by external sources is not subject to official languages, privacy and accessibility requirements.

English and French

• English (PDF document)
• French (PDF document)

OCA Funded Research
This research received funding support through the Office of Consumer Affairs' Contributions Program.

Contact information

Source: Consumer Policy Research Database