Class actions

In a report to the Civil Justice Council, Rachel Mulheron, Professor of Law at Queen Mary, University of London, recommended that US-style class actions are urgently needed to prevent injustice. The difficulties encountered with current bank charges litigation and mass equal pay claims showed the need to reform the collective redress system. An ‘opt-out’ system could be more effective than the group litigation orders currently used in the UK. The US opt-out procedure attracts far greater numbers of claimants than the UK opt-in system. It is recommended that a UK class action procedure should only supplement what presently exists, not replace it, and should only be used where the court decides that it is the best option. There was over-whelming evidence that a further collective redress mechanism is needed. There were low rates of participation and procedural problems with opt-in group litigation orders and a lack of damages claims in respect of widespread cartel and other anti-competitive conduct, or in relation to proving unfair contract terms. The bank charges litigation in English county courts has been a recent reminder of how inefficient and burdensome some group litigation can be.