Key points
- Individual lawsuits give the claimant full control over strategy, settlement, and outcome.
- Class actions spread legal costs across the group, making large cases economically viable.
- Individual compensation in a class action may be less than in a bespoke individual claim.
- Class actions bind all group members to the outcome unless they opt out.
- Individual litigation is typically appropriate only when losses are substantial enough to justify the cost.
Control and decision-making
In an individual lawsuit, the claimant instructs their own lawyer, approves every strategic decision, and negotiates their own settlement. In a class action, the lead applicant and their legal team make decisions on behalf of the whole group. Group members have limited input into settlement negotiations and must accept the outcome unless they opted out before the relevant deadline.
Costs and funding
Individual litigation carries full exposure to legal costs — both your own and, if you lose, potentially the defendant's costs. Class actions typically operate on a no win, no fee basis or with litigation funding, meaning group members bear no upfront costs. However, a portion of any settlement is deducted to cover legal fees and funder commissions.
Compensation outcomes
Individual claimants may achieve higher compensation because their claim can be tailored to their specific circumstances. Class action settlements distribute a total sum across thousands of group members, which can result in lower per-person amounts — particularly for members with modest individual losses. This trade-off is intentional: it makes access to justice viable for people who could not afford to sue alone.
When an individual claim makes sense
An individual claim may be preferable when: the loss is substantial (typically above $500,000), the circumstances are unique to you, you require specialist expert evidence, or speed is essential. Before deciding, seek independent legal advice tailored to your situation.
This article is general information only and does not constitute legal advice. ClassActions.com.au is an independent information service and is not a law firm. If you believe you may have a legal claim, consult a qualified Australian legal practitioner.