Class actions

Running a class action or other form of group litigation is more complex than it might first appear. You will need to ensure that there is a valid retainer with every client and a workable mechanism for obtaining instructions, communicating advice and managing conflicts of interest. There are numerous practical and legal challenges, including:

• how the firm will be engaged by and communicate with a large number of clients;
• how instructions will be obtained and decisions made;
• what level of consensus is required before significant decisions can be taken;
• how conflicts between group members will be identified and managed;
• how costs, funding and adverse costs risks will be addressed; and
• what happens if clients wish to withdraw from the group or take positions inconsistent with the interests of other group members.

There are third parties who claim to be able to help manage some of these challenges, but even then it might be too much of a stretch. and group claims often involve substantial operational, regulatory, reputational and financial risks. Before accepting instructions in relation to any proposed class action, group litigation order, representative action or similar multi-party claim, you must consult the Director of Operations and Compliance and obtain approval before any engagement letter is issued or substantive work is undertaken.