When a larger company engages in practices that harm multiple smaller businesses, the small businesses may question whether they are empowered to band together and sue the larger entity as a group. The answer is yes—under certain legal conditions, small businesses can join forces in litigation, a process known as joinder or, in some cases, forming a class or mass action. For Minnesota small businesses facing unfair practices, this can be a powerful tool to level the playing field.
Joint litigation allows multiple plaintiffs with similar legal claims to bring a single case against a defendant. This approach can save time, reduce costs and strengthen the case by presenting a unified front. For example, if several small retailers are harmed by a large supplier’s breach of contract, deceptive practices or antitrust violations, they may choose to file a joint lawsuit. The court will typically allow joinder if the plaintiffs’ claims arise from the same transaction or occurrence and involve common questions of law or fact.
Is joinder a potentially favorable approach?
One key advantage of joint litigation is cost-sharing. Lawsuits against large corporations are often expensive due to the complexity of the issues and the resources needed for discovery, expert testimony and legal representation. By pooling their resources, small businesses can more easily afford to pursue justice they might not be able to seek individually.
Minnesota courts, both state and federal, recognize the right of plaintiffs to join together under Rule 20 of the Minnesota Rules of Civil Procedure. However, each plaintiff’s case must still stand on its own merits. Courts will examine whether the plaintiffs’ claims are sufficiently similar and whether trying them together will promote efficiency without causing unfair prejudice to the defendant.
Alternatively, when affected businesses are too numerous or their individual damages are relatively small, a class action may be appropriate. This requires certification by the court and is governed by stricter procedural rules. While class actions are more commonly used by consumers, businesses can sometimes qualify if the facts support a cohesive legal theory and shared injury.
Small businesses considering collective action would do well to consult an experienced business litigation team to assess their options. This effort can help determine whether joint or class litigation is the most appropriate path, assist in identifying other potential plaintiffs and help to ensure that all procedural requirements are met.