A class suit is an action where one or some of the parties may sue or defend for the benefit of all. This is allowed when the parties affected are so numerous that it is impracticable to join them all as parties.
The requisites for a class suit are:
- The subject matter of the controversy is one of common or general interest to many persons. This interest must be in the subject matter itself, not merely in the questions involved, nor the delict or wrong committed by the defendant.
- The persons are so numerous that it is impracticable to join them all as parties.
- The court finds a number of them sufficiently numerous and representative of the class as to fully protect the interests of all concerned.
- The representative sues or defends for the benefit of all.
An action does not automatically become a class suit just because it is labeled as such in the pleadings; it depends on the attending facts and the pleading initiating the action which must allege the necessary facts.
A class suit contemplates an exceptional situation involving numerous persons all in the same plight, constituting a constituency whose presence is indispensable to justice. While strict application of rules on indispensable parties would require every individual to be present, the practice is relaxed in class suits to allow the suit to proceed when the class is sufficiently represented. Representation of a class interest affected by the judgment is indispensable, but it is not indispensable to make each member of the class an actual party.
Courts should exercise utmost caution before allowing a class suit, as it is an exception to the requirement of joining indispensable parties.
Examples where a class suit was found proper include:
- An action concerning the common or general interest in the closure and excavation of a public road affecting numerous commuters and motorists.
- An action filed by minors, represented by their parents, for themselves and future generations concerning the right to a balanced and healthful ecology and the preservation of natural resources.
Examples where a class suit was found not proper include:
- An action for damages by residents exposed to toxic wastes, where each plaintiff has a separate and distinct injury not shared by others.
- An action for damages by relatives of plane crash fatalities, as each has a distinct and separate interest that must be proven individually.
- An action where parties have conflicting interests in the subject matter.
- An action by a corporation to recover property belonging individually to its members.
- An action for recovery of real property where parties claim ownership of separate portions individually, not having a common or general interest in the subject matter.
- An action for damages for an allegedly libelous article affecting individual reputations, as there is no common or general interest in personal reputation.
- A petition challenging an Executive Order affecting employees' security of tenure, which was not deemed a class suit.
In a class suit, any party in interest has the right to intervene to protect their individual interest.
A class suit shall not be dismissed or compromised without the approval of the court.
A class suit is distinct from a derivative suit, where the cause of action belongs to the corporation and is filed by a stockholder on its behalf. In a class suit, the cause of action belongs to the members of the class. It is also distinct from an individual suit.