What Is the Difference Between Class Action and Multidistrict Lawsuits?

    DENTON, TX, May 13, 2010 /24-7PressRelease/ -- In the United States, multidistrict litigation (MDL) refers to a special federal legal procedure that was created to expedite the process of handling complex cases like air disaster litigation or complicated product liability suits.

About MDL Cases
MDL cases are civil actions that involve one or more common questions of fact. A question of fact is a factual dispute between litigants that must be resolved by the jury during trial. It is an issue that is mandatory to the outcome of the case and requires an interpretation of conflicting views on the circumstances that surround the case. For example, a question of fact might be whether a medical device manufacturer was negligent in manufacturing medical equipment.

The Judicial Panel on Multidistrict Litigation
To speed trials that may involve thousands of plaintiffs, the Judicial Panel on Multidistrict Litigation decides whether cases should be consolidated under MDL and where to transfer the cases. MDL cases are sent from one court to another for pre-trial proceedings, and then remanded to the originating court for trial.

The Judicial Panel was created by legislation in 1968 in response to the difficulty the courts experienced in coordinating nearly 2,000 related cases that were then pending in 36 districts around the country. These cases involved an alleged nationwide antitrust conspiracy among electrical equipment manufacturers.

The Panel consists of seven judges presided over by the chairman. The chairman has additional responsibilities since they are responsible for the oversight of:

- The panel's office
- Its staff of 20 employees
- Its budget

Multidistrict Litigation vs. Class Action

MDL is not a type of class action. A class action lawsuit is a large-scale civil proceeding usually brought about in product liability cases on the behalf of multiple clients who have a shared interest in the case. Class actions may be transferred to an MDL consolidation in the same manner as single-plaintiff cases. But, for cases to be treated as an MDL consolidation, the Judicial Panel must find one or more common questions of fact. Because commonality is also a requirement for a class action, class actions are frequently litigated in MDL proceedings.

Benefits of Multidistrict Litigation

In pharmaceutical proceedings, MDL is a way that the courts can collectively handle multiple lawsuits involving the same dangerous drug. Consider suing a billion-dollar drug company with seemingly unlimited resources who will fight at every turn. This becomes very expensive. A single victim or their attorney would probably be unable to finance this litigation alone. The combination of claims in a single forum increases the plaintiffs' leverage by permitting counsel to pool their resources to work for the plaintiffs' common benefit.

MDL also promotes the efficiency and consistency of rulings. Instead of 100, even 1,000 cases that are filed in various courts throughout the United States, the litigation is consolidated. Important decisions are made by a single court, which saves significant time and money while ensuring consistent rulings.

Types of MDL Cases
Certain types of litigation are good candidates to be transferred and consolidated to a single judge. These include:
- Torts involving disaster (most often airplane crashes)
- Complex product liability cases
- Trademark and patent infringement
- Securities violations
- Antitrust issues

Corporate Defendant Preference
A majority of corporate defendants prefer MDL proceedings, because:
- They can consolidate all federal cases pending at the time the MDL consolidation request is granted
- They can bring in any subsequent state cases as "tag-along" cases
- It is more efficient and less dangerous for defendants to have each defense witness cross-examined in a single deposition (because a witness may give inconsistent testimony when involved in countless depositions across the country)

If you would like to learn more about multidistrict litigation, please visit the website of pharmaceutical litigation attorneys Schlichter, Bogard & Denton today, serving clients nationwide, to learn about your rights.
Website: http://www.druginjuryinformation.com

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