Friday 10 June 2022

Competition Appeal Tribunal grants one of two collective proceedings orders in trucks cartel damages case

 

Competition Appeal Tribunal grants one of two collective proceedings orders in trucks cartel damages case

 

In a much awaited judgment, the Competition Appeal Tribunal (CAT) has granted one and refused a second collective proceedings order (CPO) application in relation to the two collective damages actions brought against truck manufacturers.

The claims were brought by UK Trucks Claim Limited (UKTC) and Road Haulage Association Limited (RHA), under section 47B of the Competition Act 1998, as follow on actions arising from the European Commission’s truck cartel decision issued in July 2016.

The UKTC application was for an opt-out claim, with a class size of approximately 38,000. The RHA application was for an opt-in claim, with a class size of approximately 17,500.

It was noted by the CAT that the UKTC claim would capture more claims by small operators.

The CAT identified a number of concerns relating to the identification of common issues but was satisfied that there was overarching wrongdoing and all potential class members had purchased or leased a new or used truck.

The CAT refused to accept that the EURO emissions part of the UKTC claim was a common issue and found that this element was not suitable for opt-out collective proceedings.  Trucks registered outside the UK were excluded from the class.  It also ruled that compound interest was unsuitable for determination as a common issue in opt-out collective proceedings.

The CAT found that both applications were suitable but it could not approve the two applications.  Even though there was no legislative presumption in favour of opt-in or opt-out proceedings, the CAT granted the RHA application as it had the advantage of being opt-in.  In the CAT’s view, opt-in proceedings had the benefit of giving access to a wider dataset, despite presenting a greater risk to litigation funding.

The CAT’s ruling is a welcome decision in bringing clarity to the status of these two sets of claims.  It will no doubt provide further momentum for the growth of collective competition proceedings in England and Wales.

UK Trucks Claim Limited v Stellantis N.V. (formerly Fiat Chrysler Automobiles N.V.) and others and Road Haulage Association Limited v Man SE and others [2022] CAT 25

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