The Competition Appeal Tribunal (CAT) has approved a settlement between Mark McLaren, class representative in the Car Delivery Charges legal action on behalf of UK consumers and businesses who purchased or leased new cars and vans, and CSAV, one of the five defendant shipping groups. It is the first ever settlement in a UK opt out class action.
The settlement was approved at a hearing at the CAT on 6 December 2023, which followed Scott+Scott, the law firm instructed by McLaren, and Wilmer Hale, the law firm instructed by CSAV, making a formal application to the CAT in October.
The settlement value is £1.5m. CSAV is the smallest defendant in the cartel, with around 1.7% market share of the cartel. This will not settle the claim against the other 4 defendant groups, which is expected to proceed, with a trial due to be listed in early 2025. The settlement sum will be held in escrow and class members will receive damages once the litigation is resolved against the other Defendants.
Mark McLaren, class representative said: “We are delighted that we have been successful in securing a settlement that will provide redress to those British consumers and businesses who bought new cars and vans and have suffered a loss as a result of the cartel. This is a significant milestone in this claim, which is important for the class members and also for upholding the rule of law and demonstrating that this regime works.”
Belinda Hollway, partner at Scott+Scott, said: “This is a great outcome for the class in this case, and it is also a great outcome for the collective actions regime. It shows that collective settlements can be achieved and that the regime is working to deliver compensation to the victims of breaches of competition law.”
Over 17 million cars are said to have been affected by a price-fixing scheme run by international shipping firms MOL, “K” Line, NYK, WWL/EUKOR and CSAV. Those affected are consumers and businesses who bought new vehicles from many of the leading brands including Ford, Vauxhall, Volkswagen, Peugeot, BMW, Mercedes-Benz, Nissan, Toyota, Citroen and Renault between October 2006 and September 2015. Anyone who wishes to register their interest in receiving updates about the claim can do so here: https://www.cardeliverycharges.com/
This legal action follows the European Commission’s (EC) ruling on 21 February 2018 that the above shipping companies had violated EU competition law and were made to pay fines of over €395m. The EC held that the shippers had coordinated rates, allocated tenders, coordinated reductions of capacity in the market and exchanged commercially sensitive information to maintain or increase the price of intercontinental shipping of new vehicles.
McLaren has instructed Scott+Scott UK LLP, a specialist dispute resolution firm whose solicitors have extensive expertise in competition litigation. The Class Representative has also instructed a highly experienced barrister team led by Sarah Ford KC of Brick Court Chambers. The collective action is being funded by Woodsford, a leading global ESG and litigation finance business.
Mark McLaren worked for nine years at The Consumers’ Association (Which?), and currently serves on the statutory Consumer Panel of the Legal Services Board. He is a consumer rights champion who has dedicated his career to fighting for consumers across a range of sectors. To complement his skills and experience, Mark has put together an advisory committee led by former Court of Appeal Judge Sir Richard Aikens, which includes Nick Stace (former CEO of Choice, Australia and ex Deputy CEO of Which? UK), Kate Wellington (CEO of the Costs Lawyer Standards Board) and Steve Fowler (Editor-in-chief of Auto Express).
The claim so far
On 20 May 2022, the CAT granted a Collective Proceedings Order (“CPO”), authorising the class representative to represent the class and determining that the claims were eligible for a collective proceeding. This decision by the CAT was upheld by the Court of Appeal in November 2022 and in May 2023 the UK Supreme Court (the highest court in the UK) refused to grant the defendants permission to appeal the Court of Appeal’s decision to hear a challenge to this decision.
The claim against the other 4 defendant groups is expected to proceed, with a trial due to be listed in early 2025.
Who is eligible?
If you or your business purchased one or more new cars, or light commercial vehicles between October 2006 and September 2015, from an extensive list of mainstream manufacturers, you or your business is automatically included within the class. More information about the claim, including included and excluded manufacturers, is available on the collective action website – www.cardeliverycharges.com.
Can I register?
If you are or think you may be eligible, please register on the website to be kept up to date and to be alerted when distribution is to take place: https://www.cardeliverycharges.com/
When will class members receive damages from the settlement?
The settlement sums will be held in escrow until the litigation is resolved against the other Defendants and then Mark McLaren will seek to distribute damages to class members. If you are or think you may be eligible, please register on the website to be kept up to date and to be alerted when distribution is to take place: https://www.cardeliverycharges.com/
Will there be any costs for class members?
Class members will not pay costs or fees to participate in this legal action. The legal action is being funded by Woodsford, a global ESG and litigation finance business, with significant experience of funding collective actions in the CAT. There are no legal or other fees, or any risk of adverse costs, for class members.
