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

Sackers—Zak Ullah

Sackers—Zak Ullah

Sackers welcomes new associate

Christy Davies—Birmingham Law Society

Christy Davies—Birmingham Law Society

Ward Hadaway lawyer joins Birmingham Law Society Council

Ellisons—Stephanie Westwood & Anisa Khan

Ellisons—Stephanie Westwood & Anisa Khan

Ellisons expands Chelmsford commercial litigation team with two appointments

NEWS
Construction workers injured in comparable accidents can face sharply different routes to compensation on opposite sides of the Atlantic
Victims of undue influence may have more options than simply unwinding a tainted transaction, with courts able to order profits accounts, compensation and, exceptionally, severance
Disabled people could lose vital safeguards following the Supreme Court’s reversal of the Cheshire West test for deprivation of liberty, two barristers warn
A formidable reputation cannot protect a law firm when partner departures, fragile finances and client uncertainty begin feeding each other
Businesses incorporating open-source software into commercial products could face obligations to disclose valuable source code, with AI-assisted development making licensing risks harder to track
back-to-top-scroll