header-logo header-logo

10 September 2021 / Samantha Silver
Issue: 7947 / Categories: Opinion , Collective action
printer mail-detail

Group actions: a perfect storm brewing?

56829
Merricks v Mastercard heralds a new era of opt-out claims: what does this mean for insurers & consumers? Samantha Silver reports

The move towards US-style opt-out group claims becoming the norm in the UK took a huge step forward last month when the Competition Appeal Tribunal (CAT) certified the first application for a collective proceedings order (CPO) on an opt-out basis in Merricks v Mastercard [2021] CAT 28.

While the sheer size of the potential damages—an eye watering £7.2bn—stole the headlines, the case has many implications for consumers, lawyers, funders and insurers. Indeed, although the case is due to be the largest group action in English history, perhaps of more significance is the cultural shift it signifies in the potential for opt-out group actions to become more widely available in the UK. With several large group actions waiting in the wings, the floodgates could be about to open.

Background

The CPO regime was introduced under the Consumer Rights Act in 2015; however, it has taken until now for the first

If you are not a subscriber, subscribe now to read this content
If you are already a subscriber sign in
...or Register for two weeks' free access to subscriber content

MOVERS & SHAKERS

NLJ Career Profile: Nikki Bowker, Devonshires

NLJ Career Profile: Nikki Bowker, Devonshires

Nikki Bowker, head of dispute resolution at Devonshires, on career resilience, diversity in law and channelling Elle Woods when the pressure is on

Ellisons—Sarah Osborne

Ellisons—Sarah Osborne

Leasehold enfranchisement specialist joins residential property team

DWF—Chris Air

DWF—Chris Air

Firm strengthens commercial team in Manchester with partner appointment

NEWS
The government will aim to pass legislation banning leasehold for new flats and capping ground rent, introducing non-compulsory digital ID and creating a ‘duty of candour’ for public servants (also known as the Hillsborough law) in the next Parliament

An Italian financier has lost his bid to block his Australian wife from filing divorce papers in England on the basis it was no longer her domicile of choice

Reforms to the disclosure regime in the business and property courts have not achieved their objectives, lawyers have warned
The Law Society has urged ministers to hold a public consultation on the use of artificial intelligence (AI) in the justice system as a whole
Ministers have proposed bringing inquest work under a single fee scheme for legal help and advocacy legal aid work
back-to-top-scroll