Class action lawsuits involve representing a large group of people in a single case, typically against a corporation or other large entity. These cases can be enormously complex, requiring attorneys to manage numerous clients, claims and deadlines.
While most class-action attorneys strive to serve their clients effectively, there are instances where legal malpractice may occur. Below, we explore some common scenarios in class action litigation where malpractice might be a concern.
Scenario 1: a missed deadline can lead to serious negative consequences
One critical aspect of class action litigation is the necessity to meet strict deadlines. Attorneys must file claims in a timely manner to ensure that all involved parties have their cases heard.
However, with numerous clients to manage, there is a risk that some individuals may inadvertently be overlooked – especially if their contact information is not up to date.
If an attorney fails to file a claim on time for one or more clients, and if that failure was due to negligence, it could potentially be considered malpractice.
A missed deadline can terminate a client’s right to participate in the class action. It could also sometimes lead to the client’s entire case being dismissed.
Scenario 2: improper client classification under settlement agreements
In many class action settlements, each client in the class is assigned to a specific category or “grid” that determines their compensation. The grids are set up to group similarly-situated class members together and distinguish those who have greater or lesser claims.
For example, in a case involving a chemical spill, one client might be a career-long worker at the defendant chemical plant and therefore be placed on one grid. Another client who was an inspector and only visited the plant occasionally might be placed on another grid.
Each client’s classification should reflect their situation accurately and will be used to determine their compensation. However, errors can occur, and clients may be placed in the wrong grid.
Such a mistake could mean a client ultimately receives less compensation than they deserve. Or, a client could be overpaid and have to pay some of the money back. Grid classification errors, if due to negligence, could be viewed as malpractice.
Scenario 3: pressure to accept an inadequate settlement
Another concern in class action litigation is the potential for attorneys to pressure clients into accepting settlement offers that may not fully account for their circumstances, such as a serious medical complication.
An attorney might prioritize expedient case resolution over the client’s best interests, driven by the prospect of collecting fees sooner. If a client feels pressured into accepting a settlement that does not adequately compensate for their damages, this could be indicative of a conflict of interest between the attorney and the client.
Conflicts of interest may naturally arise in class-action litigation
Conflicts of interest may arise when an attorney’s obligations to one client compromise their duties to another client, or when a client’s interest conflicts with their own.
In class action litigation, attorneys must be prepared to balance the needs of numerous clients, and that can lead to conflicting interests. For example, an attorney might represent multiple clients whose interests diverge or become adverse during the course of the litigation.
Attorneys who take on class action litigation need to be prepared for diverging interests to arise among clients and to plan for how to handle them properly. When they do not, malpractice claims can easily arise.
Ordinarily, when a lawyer identifies a conflict of interest, he or she must withdraw from the litigation. However, clients can waive conflicts of interest, under certain circumstances. Therefore, it is crucial to have a plan in place.
Seek guidance from a legal malpractice attorney
If you believe that your representation in a class action lawsuit was compromised due to any of these issues, it may be a good idea to consult with a lawyer with experience handling legal malpractice claims. They can explain your rights and the potential remedies available to you, and provide guidance on how best to proceed.