Posted December. 26, 2004 22:40,
The Supreme Court said yesterday that it will publicly announce class action rules necessary for judicial practice on December 29, under a securities-related class action law that will be effective starting January 1, 2005.
The rules state that if plaintiffs fail to pay for placing an announcement in a daily newspaper within 10 days after the submission of petition, the courts may dismiss the petition.
The rules are aimed at preventing excessive actions by allowing courts to disapprove or cancel actions when plaintiffs fail to pay for litigation costs on time. They also stipulate that court should, in principle, examine applicants when they ask for the preservation of evidence; that a settlement between the plaintiff and defendant before the courts approval of lawsuit should be recognized; and that the representative plaintiffs retaining of money gained after winning the case in his/her name should be banned.