Does California Law Allow Tolling of the Statute of Limitations Pending Class Certification?

Question from Nora, Does California Law Allow Tolling of the Statute of Limitations Pending Class Certification?

Answer from AI:

In California, the concept of tolling the statute of limitations during the pendency of class certification is generally recognized. This is often referred to as “class action tolling” or “American Pipe tolling,” named after the Supreme Court case American Pipe & Construction Co. v. Utah.

Understanding Class Action Tolling

Class action tolling is a legal principle that pauses or “tolls” the running of the statute of limitations for potential class members from the time a class action is filed until class certification is decided. This allows potential class members to wait and see if the class is certified before deciding whether to file their own lawsuits.

Legal Basis for Class Action Tolling

The principle of class action tolling was established in the 1974 Supreme Court case American Pipe & Construction Co. v. Utah. The Court held that the commencement of a class action suspends the applicable statute of limitations as to all asserted members of the class who would have been parties had the suit been permitted to continue as a class action.

Application in California

In California, courts have generally followed the American Pipe rule. For example, in the case of Jolly v. Eli Lilly & Co., the California Supreme Court stated that the filing of a class action tolls the statute of limitations for all members of the proposed class.

Considerations and Limitations

While class action tolling is generally recognized, there are some important considerations and limitations:

• The tolling generally only applies to claims that are identical or similar to those asserted in the class action.
• Some courts have held that tolling does not apply to class members who file their own lawsuits before the decision on class certification.
• There may be other circumstances where tolling does not apply, depending on the specific facts of the case and the applicable law.

Seeking Legal Advice

It’s important to consult with a legal professional for personalized advice on this issue. The application of class action tolling can be complex and depends on the specific facts of each case. A lawyer can provide guidance on how the law applies to your situation and can help you understand your rights and options.