COLLECTIVE ACTIONS AND GROUP LITIGATION

Sometimes the most practical way of resolving a dispute is through group litigation or a collective action.  In cases where a breach of competition, contract or consumer law affects a large number of potential claimants, it may be most cost effective and efficient to bring one action to determine all these claims.  In cases where individual losses are relatively low, it may be impracticable for each claimant to bring their own case as the costs of doing so may be disproportionately high vis-à-vis any potential damages.

There have been developments in England and Wales in recent years that have increased the options for claimants in these types of cases.

There are 3 main options for bringing claims like this: 

Collective Proceedings

Since 1 October 2015 opt-out collective actions can be brought in the Competition Appeal Tribunal, in relation to infringements of competition law, on behalf of a class of claimants without the need to identify every single claimant. Persons within the class can ‘opt-out’ of proceedings but otherwise will be deemed to be part of the class.  The class will be represented by a class representative and will have to be certified by the Competition Appeals Tribunal.

Group Litigation

A Group Litigation Order is a court order which allows a number of claims to be managed collectively, allowing significant savings in terms of legal costs and court time. Claimants need to be added to the group register before the claim is brought against the defendant or defendants.

Representative Actions

Representative actions can be brought by number of claimants who have the “same interests” in a claim. A representative claimant brings a claim on behalf of a class of claimants.

Charles Lyndon has significant experience of collective proceedings, including filing the first stand-alone, opt-out collective action brought in the UK.