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Court clears class action; Legal merit not required for certification.(California Supreme Court)(Brief Article)

Business Insurance, July, 2000 by GREENWALD, JUDY

SAN FRANCISCO -- A recent California Supreme Court decision that says the legal merits of a case should not be a factor in deciding whether to certify it as a class action will allow more class-action suits to proceed against businesses, some attorneys warn. Other attorneys contend, however, that the unanimous decision does not break any new legal ground and will not drive up the number of class actions in California, because courts will continue to have discretion on whether to certify a case as a class-action lawsuit.

"I think it's unfortunate," said John H. Sullivan, president of the Sacramento-based Civil Justice Assn. of California, a tort reform group. "The psychological impact is going to be a green light for those lawyers who are filing lawsuits based...

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