Courts Find More Ways To Screw Us

[+ Lucky]

As this article correctly points out, most people won't sue for a paltry $30. BUT, class action law suits make it easier for people to do- by joining a group of people in the same boat. According to a NY Times article in a column called The Haggler, the US Supreme Court has ruled that corporations can write contracts that block consumer class-action lawsuits.

 

We are forever giving up our rights voluntarily. That's why these websites have those super long things you have to click "I Agree" to. They don't want you reading them, and most of us don't. But companies who don't use the "I Agree" button have learned that they can do the same thing in paper contracts- make yo give up rights that the courts have long found that you have.

 

In the case discussed, a service man turned in his auto early. The lease had not expired. The Servicemembers Civil Relief Act allowed him to do this and get back the $400 he had paid in upfront charges. Congress wanted to protect service men who were serving. But, the Nissan Corporation had written this right out of his contract- or at least his right to sue over it.

 

The Haggler says that 76 times now courts have stopped class action lawsuits because the contract signed forbids them. Why didn't the Court rule that these provisions were unconscionable and thus not allowed? Because they are not consumer oriented. You don't think that they are going to rule for us against banks and credit card companies, do you?

 

http://www.nytimes.com/2012/05/06/your-money/class-actions-face-hurdle-in-2011-supreme-court-ruling.html?_r=1&ref=thehaggler

[orbital sander]

I have mixed feelings about class action lawsuits. The lawyers get millions of dollars, and all of the plaintiffs get coupons for 50 cents off their next purchase (or a check for $1.42)...and this is generally covered by an increase of price to the consumers who still buy from the defendant...something seems impotent about this, except for the John Edwards of the world...

[+ Lucky]

I agree with Orbital sander that class action lawsuits often seem to benefit only the lawyers, but what is the alternative? Lawyers do front the money needed to get the lawsuit to court, and gain nothing if they don't win. But they do seem to take too much when they do win.

[orbital sander]

I agree with Orbital sander that class action lawsuits often seem to benefit only the lawyers, but what is the alternative? Lawyers do front the money needed to get the lawsuit to court, and gain nothing if they don't win. But they do seem to take too much when they do win.

 

Yeah, but on the flip side, I guess if you divided the legal fee up among the class, they would get an additional $.50 added to their $1.42 check. Companies must just add it all to the "cost of doing business" these days.