Consumer power

Consumers and small businesses will be able to pursue compensation claims via a collective redress system if Civil Justice Council (CJC) proposals are adopted.

The CJC recommends an increasing the number of organisations that can bring claims and changes to laws to permit the award of aggregate damages. Robert Musgrove, chief executive of the CJC, says the proposal is not a licence to lawyers or funders to “drum up litigation for personal profit” but an improvement in access to justice to allow legitimate claims to be brought.

Musgrove says: “The recommendations contain a number of procedural mechanisms that protect defendants, and place the casemanaging judge in control at all stages of the claim; from certification of merits, agreement of the funding arrangements, rigorous case management of the claim, and authority over the final settlement”.

Steve Brooker, policy expert for the National Consumer Council says it should be possible in future for cases to be brought on an opt-out basis.

“[This] is best suited for dealing with claims involving relatively small sums for the individuals affected, but that would allow companies to build up large windfalls if the claims were not otherwise pursued,” he adds.