Adv. Elad Man
Hatzlacha - “NGOs and Class Action”
The Organization and Class Actions
In early 2006, as part of the legislative reform introduced to the field of class actions in Israel, the option class action by an organization was introduced for the first time. Corporate-bodies without a personal cause of action could now file and commence legal proceedings against defendants, having no direct rival with them. The rationale that led to the introduction of such mechanism, ,was designed to overcome and cure market failures and remove barriers relating to the submission of class actions, that until that point could only be filed by a someone holding a personal cause only.
Despite the fact that the alternative allowing organizations to file class actions was introduced already in 2006, it was not used to a large extant since it was incorporated into the procedure. For several years, there was complete uncertainty and ambiguity regarding the boundaries concerning the terms and situation, enabling organization to become lead plaintiffs and applicants. only in 2012, six years after the law reform, case law has begun to draw clear lines to the characteristics of organization's right of claim and to better define the relevant conditions and milestones involved.
The parameters and factors defined by the court in later years, allowed to create more certainty on the part of organizations and defendants as well, with regard to the involvement of organizations in the class action arena. The lecture will describe the rules and observations formed by the court and the growing role of organizations in complex economic litigation, which requires expertise in areas of law which can be identify as such that are suffering from sub-enforcement and a strong need for intense professional analysis and major financial and time resources.
The lecture will also deal with the legal areas in which it is desirable to deepen the work of organizations and will summarize the line of cases in which an organization can have significant advantages over the claimant with a personal cause.