The New Class Actions in Japan

(ProQuest: ... denotes non-US-ASCII text omitted.)I. THE EVOLUTION OF CLASS ACTIONS IN JAPANThis comment provides the first thorough examination of class action law in Japan. Until recently, there was no formalized system of class action lawsuits in Japan.1 Class action lawsuits were informally processed through the use of joinder and consolidation under the Japanese civil code, but these processes were not widely used for large numbers of plaintiffs.2 Although injured parties could join cases with similar facts, such parties were plaintiffs who actually appeared in the case-they did not represent those ?who did not join in the lawsuit.?3 Japan did not have the simplified opt-in or opt-out systems available in Europe and the United States. 4 While research is available on Japan's previous group litigation methods, such material is sparse due to the system's limited use.Since 2000, Japan modernized its class action system, 5 as demonstrated by the allowance of injunctive relief for groups of consumers in 20076 and the creation of a new class action law in December 2013.7 This modernization has not come without resistance. Japanese culture tends to prioritize alternate dispute resolution mechanisms, such as mediation, rather than litigation.8 Despite this reluctance towards class action and litigation generally, Japan will benefit greatly from its new class action system. A formal class action system promotes judicial economy and provides predictability, consistency, and a means for unprotected consumers to obtain judicial remedy. In December 2013, Japan codified a consumer class action system that is set to take effect within the next three years. 9 This law directly impacts consumers' ability to recover from harmful business practices and product defects. 10 Additionally, this law will significantly impact corporations doing business with consumers in Japan.11This author argues that Japan should look to U.S. case law to prepare for unexpected difficulties it may encounter in implementing its new class action law. Providing a defined set of class action rules will encourage lawsuits against those that take actions adverse to consumers' interests;12 the class action system should thus encourage responsible social behavior. In the United States, the class certification system effectuates the legal goals of efficiency, consistency, and consumer protection, but it is subject to controversy and divergent judicial interpretation.13 The U.S. system, while not perfect, highlights the benefits of a developed class action system, as explained in Part IV, infra.This comment begins in Part II by introducing the history of class action litigation in Japan. Part III describes the current state of class action lawsuits in Japan, as well as the recently passed law. Part IV explains the class action system used in the United States. Examining the U.S. class action system is appropriate because Japan's legal system post-World War II was influenced by American procedural philosophy and the common law system.14 This similarity makes direct comparisons possible, and means that the experiments with class actions in one country could inform innovation in the other. Part IV also examines recent difficulties that American courts have faced in interpreting their own class action laws. By examining the issues U.S. judges have faced in interpreting class action law, Japan can prepare itself for similar challenges. In Part V, this comment explains how Japan's new class action law provides a unique opportunity to benefit consumers. Lastly, this comment suggests that Japan's new law, with its bifurcated structure, may provide a blueprint to resolve some of the issues present in U.S. class action litigation.II. THE JAPANESE LEGAL SYSTEMThis Part discusses the Japanese legal system's structure. First, this Part looks at Japan's Constitution and court system. Though Japanese culture has historically been considered reluctant towards litigation,15 that perception is slowly changing. …