CAT approves collective settlement in rail ticket overcharging claim

 

 

The Competition Appeal Tribunal (CAT) has granted an application by Mr Justin Gutmann (the Class Representative) and Stagecoach South Western Trains Limited (SSWT) for a collective settlement approval order (CSAO).

The collective action concerns a claim that First MTR South Western Trains Limited and SSWT had abused their dominant positions by failing to make their "boundary fares" sufficiently available, resulting in rail passengers being overcharged for certain journeys.

The PCR and SSWT agreed to settle in relation to the claims brought against SSWT but claims against First MTR South Western Trains Limited are continuing.

Under the settlement, SSWT will make available up to £25 million to pay class members who make claims. The settlement also contains provision for the payment of the costs of the Class Representative (and its funders).

Under section 49(5) of the Competition Act 1998, the CAT may only make a CSAO if it is satisfied that the terms of the settlement are just and reasonable. This involves being satisfied that, whilst the settlement may not be perfect, the settlement is fair and reasonable. There may be a range of settlements that are fair and reasonable and not necessarily the ideal settlement that the CAT would otherwise be seeking to achieve.

The CAT has concluded that, in the circumstances of this case, and where it does not consider that the merits are strongly in the Class Representative’s favour, the settlement is just and reasonable.

Justin Gutmann v First MTR South Western Trains Limited and Stagecoach South Western Trains Limited [2024] CAT 32