§6614 Y2K actions as class actions

Summary

Y2K lawsuits that say a product or service was defective can be run as class actions only if they meet all other legal requirements and the judge finds the alleged defect would be important to most people in the class. If a case is a class action, the court must send each class member a clear notice that explains the claim, says which court is handling it, and lists the lawyer fees — either the hourly rate or the contingency percentage and an estimate of how much that would be if the requested damages were awarded. Federal district courts usually have original jurisdiction over Y2K class actions, except in certain situations: most class members and the main defendants are from the same State and that State’s law will apply; the main defendants are States or state officials who can’t be ordered to give relief; the class does not seek punitive damages and the total dispute is under $10,000,000; or there are fewer than 100 class members. If a federal court only has the case because of this rule and the class can’t meet the federal class-action standards, the court must dismiss or remove class claims and send the case back. Plaintiffs may refile or fix class claims, defendants may move them back to federal court, time limits on claims are paused as federal law allows, and other civil procedure rules still apply.