Some people tend to confuse a small claim with a class action, as both can and do deal with small amounts. So what is the basis of the difference between the two?
claim Small In essence, it is a claim between two parties, the conflict between which is essentially a conflict that has no direct impact on other parties and is limited between the two opposing parties - in this context, it can be said that the plaintiff cannot be a company.
The lawsuit The representative, in contrast to the small one or a claim in general, is a claim that is essentially a "public" claim, in which the plaintiff acts as a representative of a large group of additional plaintiffs, whom the court prefers not to each pursue their own claim in view of the minor damage. It is also reasonable to assume that, in view of the minor damage to each of the individuals - the potential plaintiffs - those will choose not to sue, but the issue as a whole and the overall damage will have significant broad implications for the entire affected public as well as for those who have not yet been harmed, but who, if the phenomenon does not stop, will presumably be harmed.
The court - as one interested in encouraging the protection of the individual - is interested in encouraging the investigation of the class action and, if the phenomenon is found to be true, preventing its continuation before it harms additional individuals.
What amounts are involved in each claim?
While a small claim is limited in amount - which currently does not exceed 33,500 NIS - the class action is not limited in amount and often the aggregate value of the claim exceeds millions of shekels, while the damage to the individual is a few cents to a few shekels.
For example, our firm filed a lawsuit against the Airports Authority - which is currently being investigated in court - for the fee collected from all parking lots at Sde Dov and Ben Gurion airports. The damage to each of the parkers is small, but the aggregate value of the class action is NIS 200 million.
Mode of representation
Another noteworthy difference between the types of claims is that in a small claim, the plaintiff represents himself and only more exceptionally, is he represented by an attorney. In a class action, the issue of the ability to represent is an issue in itself and the court will examine whether the representative has the ability to represent in the claim. The reason for this is that the representative - both the plaintiff and the attorney - represents an entire group, a public, on which the outcome of the proceedings has an impact as a whole, and therefore it is appropriate that the representatives be those who are able to represent the public properly, so that it is not harmed as a result of inadequate representation.
Procedural difference
thing additional It should be noted that difference Procedural. While a small claim is filed in a manner in which the plaintiff files a statement of claim and the defendant files a statement of defense and the claim is heard before the court, in a class action lawsuit a preliminary proceeding is filed called request For approval The lawsuit As a complaint Representative. Only if and to the extent that the court approves the request will the claim be heard. Indeed, since the investigation at the stage of the request to approve the claim as a class action is a comprehensive investigation process, there are many cases in which, when the request is approved, the parties reach a comprehensive settlement, since the approval stage also entails a comprehensive consideration of the substantive questions in the law and the fact that the court approves the request is a strong "hint" to the defendant.
Duration of the procedure
Also, a small claim is basically a quick and expedited procedure, usually ending in no more than one hearing. If it becomes clear to the court that the issue is complex, the court has the authority to transfer the small claim to the lines of a regular claim. This is required in view of the minimal procedure - the rules of the game - that exist within the framework of a small claim. In a class action, the path is usually long and punctuated by complex litigation and quite a bit of hearing procedure, since the decision, even at the stage of the application for approval of the claim, has a substantial impact on a wide public and often in particularly significant sums of money.
Is it possible to reach a settlement in each of the claims?
While in a small claim, as in any regular claim between two parties to litigation, the parties can reach an agreement between themselves and the court will approve it as respecting the wishes of the parties, in a class action the court will examine the agreement between the parties and the court - by law - is required to examine "whether the agreement is appropriate, fair and reasonable considering the interests of the members of the group" (Section 19 of the Class Actions Law). Furthermore, the court is also required to appoint a party who will objectively examine the agreement and provide an opinion to the court on whether the agreement meets the criteria in the law (except in exceptional cases).
For example, there are rules regarding withdrawal from a class action. Unlike a regular lawsuit, in which the plaintiff can withdraw his claim and the question will be only the opposing party's expenses, in a class action the court's approval is required for the withdrawal of the claim. Furthermore, even if a plaintiff or representative chooses to withdraw from the class action, the court will appoint a substitute to continue the proceedings in light of the importance of the issue at hand and its impact on the public.
In addition, a class action lawsuit is limited by law to specific issues and a class action lawsuit cannot be filed on any issue that comes to mind. Furthermore, there are also differences between a class action lawsuit against a state authority and a class action lawsuit against a private entity.
toSummary, A class action lawsuit is a significant tool for protecting various public interests, but using this legal tool is not simple and cannot be used without consulting and assisting lawyers who specialize in this type of litigation. This is not to discourage "good consumers," but the road between an idea for a class action lawsuit and its implementation is long and fraught with difficulties and complex litigation.
• Lawyer Zvi ("Tsiki") Wolfson, is a managing partner in the firm Wolfson Weinstein & Co.' And he is involved in law. Commercial, corporate and corporate law and litigation.
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