| How to opt out of (almost) everything |
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Some companies give consumers the opportunity to opt
out of arbitration. In other situations, it's up to the consumers to ask and alter
the existing contract when they sign. If your only options are to
sign or not, you might have to decline to do business with the firm.
By opting out, you preserve the rights you had before
you signed -- the opportunity to take the other party to court if
you think you're not being treated fairly. You also retain the
right to agree to arbitration at a later date, if that seems like
the easiest way to resolve a particular dispute.
Class action suits
You get a letter in the mail or see a notice in the paper saying
you are eligible to be included in a class action suit. Now you
have a decision to make: Do you want to opt out of the suit?
Your choice will likely come down to how much damage
you may have sustained and whether you are considering your own
independent action, says Gregg A Farley, co-chair of the class action
and derivative suits committee for the American Bar Association
and partner with the firm of Sidley Austin LLP.
"If they think they have a claim, they have to use their own judgment," says Farley. "But if it's significant, you should be consulting your own lawyers."
You might be notified of a class action suit with
a letter or you could see a notice in a newspaper or magazine.
If you do nothing, you will be considered part of
the class, says Farley. If you want to opt out, the notice of the
class action suit will have instructions on what you need to do.
Usually, you fill out a form or send a note to one or both of the
attorneys in the action. It's always a good idea to send it in such
a way that you retain proof of the day and time it was sent, in
case you should need it later.
There is likely a time deadline, often within a month, says Farley. So it pays to act quickly.
Often there is a phone number if you have questions, says Farley. If you need additional details, that can be a good resource.
By opting out, you preserve your right to sue on your own, independently from the class, and won't be bound by the class-action judgment, says Farley. If you decide to pursue your own action, you'll have your attorney acting solely on your behalf, he says.
The most common reason people opt out of a class action is because they have a significant claim against the same defendant and wouldn't get the necessary remedy from a class action suit, says Farley. Individuals will opt out most often in class action suits related to personal injury and employment claims, when their potential claim is large enough that it makes more sense to bring their own suit, he says.
By opting out, you lose your share in the potential
benefits awarded to the class. In most class action suits, potential
benefits for individual class members "are of small or modest
size," says Farley. But if your potential claim and recovery
judgment would be small, "sometimes it makes economic sense
for a class member to remain in the class," says Farley.
Dana Dratch is a freelance writer based in Atlanta.
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