Class Actions: Analysis of Legal Standing Cannot Be Deferred

On November 26, 2024, the Argentine Supreme Court (CSJN) overturned the decision of the Court of Appeals in Commercial Matters of the City of Buenos Aires, Chamber F, in the case "Asociación por la Defensa de Usuarios y Consumidores c/ Telefónica de Argentina SA s/ ordinario.” This ruling had affirmed the decision of the first instance court to defer the matter of the defense of lack of legal standing to the time when the final judgment was issued, since it was not evident and did not merited producing evidence.
 

The CSJN considered that verifying the standing of the plaintiff association in a class action is an essential and structural requirement for admissibility, and therefore its analysis cannot be postponed until the final stage of the proceeding. Accordingly, the Supreme Court pointed out that, to guarantee the defendant’s right to due process, it is essential that plaintiffs have a representative with sufficient standing. This is a precaution directly related to the defendant's right of defense in trial since, to properly plan its defense, it must be certain of the standing and representation its counterpart invokes.

Finally, the CSJN understood that, for reasons of procedural economy, it was appropriate to analyze compliance with the requirement of adequate representation at the beginning of the proceeding and not at the time of issuing the judgment. In this way, the Court ratified what it had already said in section II.2 c) b) of its Agreement 12/2016, which required justification of adequate collective representation in any class action.