Legal Definitions - community of interest

The term community of interest refers to a shared connection or commonality among a group of people or entities, often with legal implications. It can have different meanings depending on the context:

• 1. In Business Ventures:

  When individuals or companies come together for a specific business project, they form a "community of interest" if they mutually share the risks (like potential losses or legal responsibilities) and the rewards (like profits or successful outcomes) of that project.

  • Example 1: Two independent graphic design studios decide to collaborate on a major advertising campaign for a national brand. They agree to pool their resources, share all project expenses, and split any profits or losses equally. If the campaign is a success, both studios benefit financially; if it fails, they both bear the financial burden.

    Explanation: Their shared financial risk and potential for profit in the advertising campaign create a community of interest, as their success and failure are intertwined.

  • Example 2: A landowner and a renewable energy company partner to develop a solar farm. The landowner contributes the property, and the energy company invests in the infrastructure and operations. They agree to share the costs of permits and maintenance, and to split the revenue generated from selling electricity.

    Explanation: Both parties have a vested interest in the successful operation of the solar farm, sharing both the financial burdens and the potential profits, which defines their community of interest.

• 2. In Class Action Lawsuits:

  In a class action lawsuit, a "community of interest" refers to the shared problem or injury that unites all the individual people who are part of the lawsuit. This common issue is what allows them to sue as a single group rather than each person filing their own separate case.

  • Example 1: Thousands of car owners discover that a specific model of vehicle has a faulty braking system that can suddenly fail. They decide to sue the car manufacturer collectively as a class.

    Explanation: Their shared experience of owning the same defective product and facing the same safety risk creates a community of interest, allowing them to pursue a class action together.

  • Example 2: A large group of tenants in an apartment complex find out their landlord has been illegally overcharging them for utilities for several years. They collectively sue the landlord to recover the excess payments.

    Explanation: All affected tenants share the same grievance – being subjected to the same illegal overcharges by the same landlord – which establishes their community of interest for a class action.

• 3. In Labor Law:

  In labor law, a "community of interest" is a principle used to determine if a group of employees is sufficiently similar in their work lives to be represented by a single union for collective bargaining. Factors considered include their job duties, pay, hours, benefits, skills, training, supervision, and overall working conditions.

  • Example 1: All the production line workers, machine operators, and quality control inspectors in a manufacturing plant want to form a single union. A labor board would assess if they share similar wages, work schedules, safety concerns, and are all supervised by the same plant management.

    Explanation: If these employees experience similar working conditions, compensation, and supervision, they would be considered to have a community of interest, justifying their inclusion in the same bargaining unit.

  • Example 2: Customer service representatives, call center agents, and online chat support staff at a telecommunications company seek to unionize. A labor board would examine whether their daily tasks, performance metrics, training programs, and benefit packages are comparable enough to form a cohesive bargaining unit.

    Explanation: If these different roles within the customer support department experience similar employment terms and conditions, they possess a community of interest, making them suitable for collective bargaining as a single unit.