The UK Supreme Court has reversed a prior ruling, reinstating the Competition Appeal Tribunal's original decision in a major forex cartel case. The tribunal had refused to certify the collective action, valued at billions, on an opt-out basis. The claim was brought by representative Phillip Evans against several global banks, including Barclays and JPMorgan.
The court's unanimous judgment found the tribunal was correct to consider the strength of the claims and the practicability of an opt-in process. It warned that opt-out proceedings could be used oppressively for weaker cases, leading to over-enforcement contrary to public interest. The ruling emphasized the regime must accommodate both consumer and complex commercial disputes.
Legal representatives for the banks welcomed the clarity provided for the collective actions framework. The class representative expressed disappointment, stating an opt-in model would likely fail to deliver redress for most affected parties. His legal counsel called the decision profoundly disappointing, suggesting it creates uncertainty for future certification and warrants legislative review.
The court's unanimous judgment found the tribunal was correct to consider the strength of the claims and the practicability of an opt-in process. It warned that opt-out proceedings could be used oppressively for weaker cases, leading to over-enforcement contrary to public interest. The ruling emphasized the regime must accommodate both consumer and complex commercial disputes.
Legal representatives for the banks welcomed the clarity provided for the collective actions framework. The class representative expressed disappointment, stating an opt-in model would likely fail to deliver redress for most affected parties. His legal counsel called the decision profoundly disappointing, suggesting it creates uncertainty for future certification and warrants legislative review.
