header-logo header-logo

30 July 2025
Issue: 8127 / Categories: Legal News , Costs , Collective action , Litigation funding , Competition
printer mail-detail

CAT advice when calculating costs

People bringing collective actions should always instruct costs specialists to help them scrutinise their lawyers’ fees, the Competition Appeal Tribunal (CAT) has declared

The CAT gave the guidance while approving two collective actions against Amazon worth nearly £4bn in total. It made instructing independent costs specialists a condition of that approval, adding that this should become the ‘standard approach in collective proceedings’, in Robert Hammond v Amazon.com, Inc & Others; Professor Andreas Stephan v Amazon.com Inc & Others [2025] CAT 42, handed down last week.

Both class representatives, Stephan and Hammond, committed to having a costs professional review their future interim invoices.

David Bailey-Vella, chair of the Association of Costs Lawyers, said: ‘Class representatives are understandably heavily reliant on their lawyers in cases as big and complex as these, but with so much money on the line, the tribunal recognised the importance of them having independent advice to ensure that their costs—which ultimately come out of the class’s damages in the event of success—are rigorously policed.

‘Costs lawyers are the people to do this.’

Stephan is bringing a £2.7bn opt-out claim, arguing Amazon abused its dominant position when supplying marketplace services to third-party sellers. The funder is providing backing of up to £33m. Hammond’s £1bn claim, which has a litigation budget of £20m, alleges Amazon used its ‘Buy Box’ to suppress competition. Amazon disputes the allegations.

The CAT panel, chaired by Mr Justice Roth, noted Stephan’s funding agreement provided he would ‘review’ invoices and, at the reasonable request of the funder, seek to have them assessed.

‘We recognise that these provisions provide some protection against unreasonable fees,’ it said. ‘However, we think it is important that [Stephan], independently, should be in a position to subject claims for costs to proper scrutiny. The funder’s interests are not identical to those of the class because, if the action results in recovery for the class, the funder’s expenditure on costs will be reimbursed out of the sum recovered, potentially at the expense of the class.’

The CAT said it was similarly ‘concerned that there should be effective control of costs’ in Hammond’s case.

MOVERS & SHAKERS

Switalskis—Naila Arif, Harriet Findlay & Ellie Thompson

Switalskis—Naila Arif, Harriet Findlay & Ellie Thompson

Firm awards training contracts to paralegals through internal programme

Ward Hadaway—Matthew Morton

Ward Hadaway—Matthew Morton

Private client disputes specialist joins commercial litigation team

Thomson Hayton Winkley—Nina Hood

Thomson Hayton Winkley—Nina Hood

Cumbria firm appoints new head of residential property

NEWS
Freezing orders in divorce proceedings can unexpectedly ensnare third parties and disrupt businesses. In NLJ this week, Lucy James of Trowers & Hamlins explains how these orders—dubbed a ‘nuclear weapon’—preserve assets but can extend far beyond spouses to companies and business partners 
A Court of Appeal ruling has clarified that ‘rent’ must be monetary—excluding tenants paid in labour from statutory protection. In this week's NLJ, James Naylor explains Garraway v Phillips, where a tenant worked two days a week instead of paying rent
Three men wrongly imprisoned for a combined 77 years have been released—yet received ‘not a penny’ in compensation, exposing deep flaws in the justice system. Writing in NLJ this week, Dr Jon Robins reports on Justin Plummer, Oliver Campbell and Peter Sullivan, whose convictions collapsed amid discredited forensics, ‘oppressive’ police interviews and unreliable ‘cell confessions’
A quiet month for employment cases still delivers key legal clarifications. In his latest Employment Law Brief for NLJ, Ian Smith reports that whistleblowing protection remains intact even where disclosures are partly self-serving, provided the worker reasonably believes they serve the ‘public interest’ 
Family law must shift from conflict-driven litigation to child-centred problem-solving, according to a major new report. Writing in NLJ this week, Caroline Bowden of Anthony Gold outlines findings showing overwhelming support for reform, with 92% agreeing lawyers owe duties to children as well as clients
back-to-top-scroll