РЕШАВАЊЕ ТЗВ. КЛАСНИХ СПОРОВА У ПАРНИЧНОМ И АРБИТРАЖНОМ ПОСТУПКУ
RESOLVING THE SO-CALLED CLASS DISPUTES IN LITIGATION AND ARBITRATION PROCEEDINGS

Summary/Abstract: The class action is a procedural device available in the US and some other countries that allows plaintiffs to sue not only for injury done to them, but also on behalf of other persons similarly situated for injury done to them. The traditional two-party model of adjudication is not well-suited to situations where the claims of many individuals arise from the same conduct of the same legal entity. In particular, it may lead to denial of legal recourse when the cost of individual litigation exceeds possible recovery. The class action model gives plaintiffs much greater leverage by enlarging the defendant's risk of loss. On the other hand, it undoubtedly increases the complexity of the proceedings.In order to avoid class proceedings, drafters of standard agreements often provide in their general terms that any dispute between the parties should be submitted to arbitration, hoping that in such case only individual proceedings could be initiated, to the exclusion of class actions. But, as evidenced by the recent court decisions in the US, this strategy proves ineffective, since it has been ruled that classwide arbitration is possible, even if it raises a number of delicate issues and practical concerns.However, to what extent class arbitration is an efficient method of handling class actions and to what extent court intervention is necessary remains to be determined in the future, together with many other theoretical and practical issues.

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