Retail Motor Law

Class Actions occur when large groups commence the same action against a company, the much publicised tobacco cases in the U.S.A. are a good example.  Currently Class Actions are not available in the U.K.

However things might be set to change. If this change happens it may have a significant impact on the repair industry.  

Following an 18-month process of consultation and research which found ‘overwhelming evi­dence’ that meritorious con­sumer claims are not being pur­sued, the Civil Justice Council (CJC) is set to formally recom­mend a series of measures to encourage better enforcement of consumer rights. It is expected therefore that the govern­ment is to be advised that an opt-out class action proce­dure is needed to provide access to justice for consumers wanting to bring collective or multi-party claims. 

The report makes it clear that the CJC is not promoting US-style class actions, it would then be up to the judge to decide the costs liability of the parties.    

CJC chief executive Robert Musgrove said: ‘The CJC has engaged in extensive and wide-ranging consultation on the subject. The process has established a need for proce­dural reform to allow a broader range of representatives to bring claims on behalf of classes of consumers and businesses, while building in stringent safe­guards to avoid a proliferation of unmeritorious litigation.’   

Andrew Moody of RML is concerned that these potential changes to the civil litigation system could open the door to class actions against Insurers for vehicles that have not been repaired to manufacturer specification. There has been much publicised concern in the Industry over the joining of Ultra High Strength Steels, ‘UHSS’, and the lack of information available to repairers from manufacturers.  Vehicles repaired before the UHSS issue and lack of repair methods came to light could be prime class action material. 

Moody states that ‘It won’t just be insurers that this potential class action would affect, most approved Repairers are required to give a full indemnity to the insurance company and so any mass claims against Insurers could ultimately involve Repairers bearing at least a proportion of the costs’.