Class actions are a familiar sight on the UK legal landscape. Although this kind of action originated in the US, it has expanded to many other countries and is now seen widely here.
What counts as a class action
What are class actions?
In a class action, any number of claimants or defendants may be joined as parties to a claim. For example, it could involve claimants who have been exposed by a banking fraud, an environmental disaster or mis-selling such as what became known as Dieselgate.
Six examples of a potential class action are:
Six types of claim you can join
. Competition claims
From 2015, a class action can be taken out for violations of competition law in the UK via the Competition Appeal tribunal.
. Product liability disputes
This allows individuals to gather together to sue a seller or manufacturer of a product which has caused damage as a result of defects or safety matters.
. Environmental disputes
If business premises or a home are damaged by environmental issues such as flooding, it is possible to take action against either a local authority or any agency involved, if negligence has occurred.
. Pensions disputes
Two UK based Local Government Pension Schemes recently took part in class actions in the US, securing millions of dollars compensation for their members.
. Financial services
Under the Financial Services and Markets Act 2000, UK shareholders can raise a class action against a listed company, if the company issued misleading information.
. Consumer redress
There are proposed amendments to the Digital Markets, Competition and Consumers Bill underway, which would allow class actions for breaches of consumer law.
Opting in, opting out, and paying for it
Different class actions
One important aspect of class action suits is the difference between Opt-out and Opt-in actions. The former do not name individual claimants, but instead, are presented as a defined class. Opt-in are only brought on behalf of those who participate and authorise their participation.
Litigation Funding
Obviously, litigation funding can be expensive, but you can find help with this at sites such as www.novo-modo.co.uk/litigation-funding.
Class actions can be lengthy and costly and it is important to organise finance if you are unable to pursue the claim yourself.
Summary
This article outlines six types of class action lawsuit seen in the UK, including competition law claims, product liability disputes, environmental damage claims, pension disputes, financial services claims under the Financial Services and Markets Act, and proposed consumer redress actions. It also explains the difference between opt-out and opt-in class actions, and notes litigation funding is often needed given how costly these cases can be.
Questions this article raises
- How successful have UK class actions been compared with similar US cases?
- How do claimants typically find out they’re eligible to join an opt-out action?
- How much does litigation funding usually cost relative to the compensation won?
