Class actions reached Congress

Two proposed bills about class actions have recently entered the Argentine Congress. They are not the first proposed bills about class actions: three years ago, Senator Bauzá presented a bill about class actions, but it expired. On the other hand, the Model Code of Collective Processes for Ibero-America has existed for some time now. This was prepared by the Latin American Institute of Procedural Law, but so far has no parliamentary status.

Deputy Batuzzi presented one of the class Action proposed bills. It has 79 sections and explains that the purpose of the bill is to protect diffuse and collective rights, rights which are upheld in the Argentine Constitution.

It also states the purpose of the class actions: (i) to prevent the collective damages or to stop present and future damages; and (ii) to repaircollective damages; or, if reparation is impossible, to reward the affected social group.

The proposed bill grants the Ombudsman, individuals and associations for the defense of consumers the power to sue.

The proposed bill creates a guaranty fund to solve the costs of the procedure (i.e.: the costs of the evidence, etc.).

The judgment will only affect people who are included by the judge at the beginning of the class procedure. It will also affect people who are identified at the beginning of the procedure but did not ask for their exclusion at due time.

The proposed bill does not determine who has to afford the court costs.

The other proposed bill, which was presented by deputies Camaño and Urtubey, resembles Rule 23 of American Procedure. The proposed bill has 16 Sections. Like the American procedure, it determines that Classes could be plaintiffs or defendants.

The Judge has to certify the class. The requirements are: (i) the risk of inconsistent or varying judgments; (ii) the class is so numerous that joinder of all members is impracticable; (iii) there are questions of law or fact common to the class.

The proposed bill grants the judge the power to decide the convenience of class actions and to integrate the class.

The Proposed bill states that the Ombudsman has to act in the trial but it does not determine his faculties.

After defining the class, the judge must certify who are included to the class. The judgment shall be opposable to all of them and to the people who do not express their intention to stay outside of class.

It also creates a Class Actions Registry in order to avoid similar class actions.

The proposed bill does not provide for the creation of a special fund to support the costs of the procedure. It also fails to determine who shall bear with the court costs, and does not provide for any abnormal termination of the proceedings (i.e. dismissal or compromise).

In the XXIII National Congress of Procedural Law, which took place from the September 22nd to 24th 2005, in the City ofMendoza, the attendants specially mentioned the Project of Code Model of Collective Processes for Ibero-America. There was a great pressure from the majority of the attendants about the necessity of Argentina to incorporate a Class Action Law.