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Monday, January 2, 2012

Class Suits

The purpose of a class suit is to obtain relief for or against a large number of persons as a group or integral entity and not as individuals with rights and liabilities separate from each other. These are the requisites:

1.) Many persons have a general or common interest in the subject matter of the case
2.) The persons are so numerous that it's not practical to join them all as parties
3.) The parties actually appearing before the court are sufficiently numerous and represented that their interests are fully protected

The subject matter must refer to the physical facts, property, money, etc.; it doesn't refer to the crime or act of the defendant. It also can't be used to recover real property from several persons occupying different portions of it (Sulo ng Bayan vs. Araneta, 72 SCRA 347.) However, it can refer to the wrongful act, property or contract directly involved in the suit "concerning which the wrong has been done and with respect to which the controversy has arisen." (Meralco vs. Philippine Consumers Foundation, 374 SCRA 262.) In other words, it can refer to the bad act that caused the damage.

In a class suit, there is a single right of action pertaining to numerous persons. In a permissive joinder or persons, on the other hand, there are multiple rights that belong to several distinct persons that cam from the same transaction/s and that there are common questions of law and fact that came out of the transaction/s.

Some Examples

A large group of stockholders filing suit against a corporation for an illegal act can qualify as a class suit (Pascual vs. Orozco, 64 Phil 697.)

A suit filed on behalf of plantation laborers against sugar planters and sugar central to enforce laborer's rights under RA 809 (the Sugar Act of 1952.)

There can be other causes, provided all 3 requisites are present.

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