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• W3122907212 abstract "THE COST OF SUING BUSINESS Joanna C. Schwartz* I NTRODUCTION To listen to the U.S. Chamber of Commerce, one would think that class actions are the most significant scourge on business ever con- jured up by man. In brief after brief to the U.S. Supreme Court, the Chamber of Commerce and other business amici tell the same story: Meritless class actions, filed by rapacious plaintiffs’ attorneys for the ostensible benefit of consumers, employees, and shareholders, are so devastatingly expensive to defend against, and threaten such financial devastation if plaintiffs prevail, that corporate defendants cannot help but accept “blackmail settlements” that harm both businesses’ bottom lines and society at large. 1 The Supreme Court appears to have premised several recent civil procedure decisions on this depiction of the costs and burdens of class action litigation. The Court invoked this narrative in Bell Atlantic Corp. v. Twombly 2 as justification for the plausibility pleading stan- dard. 3 The Court also invoked this narrative when, in AT&T Mobility * Professor of Law, UCLA School of Law. Many thanks to Maureen Carroll, Joseph Do- herty, Brian Fitzpatrick, Alexandra Lahav, David Marcus, Eric Orts, Margo Schlanger, Daniel Schwartz, Charles Silver, and Stephen Yeazell for their thoughtful comments on earlier drafts. Thanks also to Thomas Cochrane, Braden Holly, Tommy Huynh, Elyse Meyers, and the expert research staff at UCLA’s Hugh & Hazel Darling Law Library for excellent research assistance. Thanks to the editors of the DePaul Law Review for their editorial assistance. Finally, thanks to Stephan Landsman for inviting me to participate in the 21st Annual Clifford Symposium on Tort Law and Social Policy: The Supreme Court, Business and Civil Justice at DePaul University Col- lege of Law, and thanks to Robert Clifford for establishing and supporting such a wonderful event. 1. Although this Article focuses on arguments against class actions, this same rhetoric has been used to critique all types of lawsuits brought by individuals against corporations. See, e.g., Theodore Eisenberg et al., Litigation as a Measure of Well-Being, 62 D E P AUL L. R EV . 247 (2013) (“[P]ortraying much litigation as pathological is a key component of business lobbying groups’ social construction of the legal system. These groups commission and use questionable social science analysis and misleadingly portray highly publicized cases, such as the McDonald’s coffee- spill case. They do so to help characterize civil litigation as dominated by lottery-seeking plain- tiffs, greedy plaintiffs’ lawyers, and state civil justice systems that are overly hostile to business.” (footnotes omitted)). 2. 550 U.S. 544 (2007). 3. See infra notes 23–26 and accompanying text (discussing the Supreme Court’s plausibility requirement in pleading)." @default.
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• W3122907212 date "2016-08-17" @default.
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• W3122907212 title "The Cost of Suing Business" @default.
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