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NCJ Number: 64690 Add to Shopping cart Find in a Library
Title: REVISION OF CLASS DAMAGE PROCEDURES - EMPIRICAL STUDIES
Author(s): ANON
Corporate Author: Arthur Young and Co
United States of America
Date Published: 1979
Page Count: 113
Sponsoring Agency: Arthur Young and Co
Washington, DC 20036
National Institute of Justice/
Rockville, MD 20849
US Dept of Justice
Washington, DC 20530
Contract Number: J-42661; J-XH7-04103-T; JADAG-79-M-1949; JAOIA-79-M-3093; JAOIA-79-M-6268
Publication Number: FJRP-79/009
Sale Source: National Institute of Justice/
NCJRS paper reproduction
Box 6000, Dept F
Rockville, MD 20849
United States of America
Document: PDF
Language: English
Country: United States of America
Annotation: THREE EMPIRICAL STUDIES INITIATED TO ESTIMATE COSTS AND IMPACTS OF PROPOSED REVISIONS OF FEDERAL PROCEDURES GOVERNING THE CLASS DAMAGE ACTION ARE PRESENTED.
Abstract: THE REVISIONS WERE PROPOSED BY THE U.S. DEPARTMENT OF JUSTICE'S OFFICE FOR IMPROVEMENTS IN THE ADMINISTRATION OF JUSTICE. IN THE FIRST STUDY, PLAINTIFF LAWYERS IN SECURITIES, TRUTH IN LENDING, AND ANTITRUST ACTIONS WERE SURVEYED TO DETERMINE THE RESOURCES REQUIRED FOR FEDERAL AND STATE GOVERNMENTS TO TAKE A GREATER ROLE IN THE LITIGATION OF MASS SMALL CLAIMS ACTIONS, AS PROPOSED. ASSUMING THE WORST-CASE INCREMENTAL WORKLOAD, THE PROPOSED RULE CHANGE WOULD HAVE AN INCREMENTAL COST OF 260 ATTORNEY YEARS OR $15.25 MILLION. IN THE FOURTH YEAR AND SUCCEEDING YEARS, THE INCREMENTAL COST COULD BE $61 MILLION. DETERMINATION OF ULTIMATE INCREMENTAL COST IS IMPOSSIBLE, HOWEVER. ALSO, THE FIRST STUDY CONCLUDED THAT ESTIMATED COSTS TO THE U.S. JUSTICE DEPARTMENT WOULD BE A MAXIMUM OF $2.8 MILLION PER YEAR, AND THAT ABOUT ONE-THIRD OF ALL CASES OF INTEREST ARE BROUGHT BY BUSINESSES. THE SECOND STUDY WAS DESIGNED TO ESTIMATE THE PROPOSED REFORM'S IMPACT ON SMALL BUSINESSES. RESULTS INDICATED THAT SMALL BUSINESSES ARE ALMOST ALWAYS INVOLVED ON THE PLAINTIFF SIDE OF CLASS ACTION DAMAGE SUITS AND THAT THEIR TOTAL FINANCIAL RECOVERIES EXCEEDED TOTAL PAYMENTS BY A FACTOR OF OVER 60 FOR ALL CASES AND BY A FACTOR OF 2.3 IN SMALLER DAMAGE CASES. IN THE THIRD STUDY, UNCLAIMED RECOVERIES RETURNED TO THE GOVERNMENT WERE ESTIMATED. USING DIFFERENT ASSUMPTIONS FOR SECURITIES AND ANTITRUST LITIGATION, GROSS AMOUNTS RANGED FROM $10.1 MILLION TO $74.8 MILLION. FOOTNOTES, TABLES, AND APPENDIXES LISTING CASE CITATIONS FOR LARGE AND SMALL ANTITRUST ACTIONS AND PRESENTING ADDITIONAL DATA ARE INCLUDED. (CFW)
Index Term(s): Class action lawsuits; Comparative analysis; Cost analysis; Federal regulations; Law reform
To cite this abstract, use the following link:
http://www.ncjrs.gov/App/publications/abstract.aspx?ID=64690

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