Liability Without Harm: Is There a New Source of Catastrophic Liability Lurking Within Your State's Consumer Protection Statute?

Lost benefit suits are especially threatening to product manufacturers because these claims are particularly susceptible to class aggregation. Rule 23 of the Federal Rules of Civil Procedure permits plaintiffs to assemble into classes when, among other things, they share 'questions of law or fact' and those common questions 'predominate over any questions affecting only individual members.' Fed. R. Civ. P. 23. Ordinarily, injury and causation are sources of diversity between plaintiffs and, by extrapolation, impediments to class treatment. Plaintiffs who claim injury from tobacco, for example, frequently claim different injuries and different causal mechanisms and, therefore, typically may not assemble into classes. <i>See, e.g., Aspinall</i>, 442 Mass. at 392-93, 813 N.E.2d at 485-86. By dispensing with the injury and causation requirements, lost benefit suits destroy a source of diversity between plaintiffs and promote class treatment.

27 minute read September 28, 2006 at 11:58 AM

By

James H. Rotondo And Thomas O. Farris