Class actions in the UK: how group litigation works

Need guidance before taking legal action? Discovering that a large corporation has caused you harm can feel isolating and intimidating. Whether it involves a data breach, financial mis-selling, or environmental damage, the prospect of facing a legal giant alone is daunting. However, you do not have to fight these battles in isolation. In the United Kingdom, group litigation allows individuals with similar grievances to combine their voices and resources. If you believe you have a claim, it is vital to find a specialist litigation solicitor who can guide you.

KEY TAKEAWAYS: What is a class action lawsuit?

A class action is a legal proceeding where a group of people with similar claims sues a defendant. In England and Wales, one of the principal mechanisms is a Group Litigation Order under CPR Part 19. Scotland has a separate opt-in group proceedings procedure before the Court of Session.

The legal system provides collective mechanisms to ensure justice is accessible when individual claims are too small or complex to pursue alone.

The landscape of collective redress in the United Kingdom

The legal framework for group claims in the United Kingdom operates differently from the American concept of a class action. Jurisdiction note: This article focuses primarily on the rules applicable in England and Wales. CPR Part 19 and Group Litigation Orders do not apply throughout the UK. Scotland has a separate group proceedings procedure under Part 4 of the Civil Litigation (Expenses and Group Proceedings) (Scotland) Act 2018, while Northern Ireland has its own civil procedure.

The key distinctions and rules include:

• The Opt-In Model: In the United States, individuals are often automatically included in a lawsuit. For a GLO in England and Wales, you must actively take steps to have your claim entered on the group register.
• Civil Procedure Rules (CPR) Part 19: In England and Wales, these rules govern representative actions, Group Litigation Orders and other procedural matters involving multiple parties.
• Judicial Discretion: The court has broad discretion to manage these cases efficiently and fairly, which is known as the overriding objective.

The Three Main Paths for Collective Redress

• Group Litigation Orders (GLOs): These manage multiple individual claims that share common factual or legal issues.
• Representative Actions: One individual represents a larger group of people who share the exact same interest in a claim.
• Competition Appeal Tribunal (CAT) Proceedings: These are specific collective proceedings used strictly for breaches of competition law.

How Group Litigation Orders (GLOs) function in England and Wales

A Group Litigation Order (GLO) manages multiple individual claims sharing common issues of fact or law. Instead of separate trials, it provides a single, coordinated framework.

Key features under the Civil Procedure Rules include:

• The Group Register (Rule 19.22): This is the official list of all claims managed under the order. Your solicitor must apply to enter your details on this register to include your claim.
• Binding Judgments (Rule 19.23): Any judgment or order on a GLO issue binds all parties on the register at that time. This ensures consistency for all claimants and prevents repetitive litigation.

Case Scenario: Imagine a car manufacturer installs software that cheats emissions tests. Thousands of owners might have the same legal complaint. A GLO would allow the court to decide the core legal questions once for everyone on the register, such as whether the manufacturer breached a contract or committed fraud.

Representative actions and the “same interest” requirement

Rule 19.8 (formerly Rule 19.6) allows one or more persons to represent others who share the “same interest” in a claim. Unlike a GLO, this can operate on an opt-out basis.

However, the Supreme Court in Lloyd v Google LLC [2021] UKSC 50 clarified that courts interpret this requirement strictly:

• Establishing Liability: A representative action can be used to prove a defendant did something wrong.
• Claiming Compensation: It is much harder to claim compensation unless the financial loss is identical for every single group member.
• Individual Assessment: The Lloyd claim failed because individual damages required separate assessments, ruling out a simplified global financial award.
• Member Identification: Group members must be identifiable, but they do not need to be named at the start.

The opt-out exception: Collective proceedings in the Competition Appeal Tribunal

The Competition Appeal Tribunal (CAT) provides an important opt-out collective proceedings mechanism for competition law claims.

Key elements of this regime include:

• Collective Proceedings Order (CPO): A class representative must apply to the tribunal to certify the claim as opt-out.
• Automatic Inclusion: Every UK resident within the defined class is automatically included and will receive a share of any damages, unless they actively choose to opt out.
• US-Style Class Action: This is the closest UK equivalent to the US model, designed to recover small individual losses that affect millions of consumers but are too small to litigate alone.

Example Case: A major technology company overcharges for apps on its digital store. Each individual user might only lose five pounds. Through the CAT, a representative can sue for the total overcharge affecting millions of users.

Funding collective actions: No-win-no-fee and Damages-Based Agreements

Group litigation against large corporations relies heavily on specific funding methods to manage high legal costs:

• Damages-Based Agreements (DBAs): Under a DBA, the lawyer receives an agreed percentage of the compensation if the claim succeeds. The maximum payment is generally 25% in personal injury claims, excluding damages for future financial loss, and 50% in other civil claims.
• CAT opt-out proceedings: A DBA is unenforceable if it relates to opt-out collective proceedings before the Competition Appeal Tribunal. These claims commonly rely instead on properly structured third-party litigation funding.
• Third-Party Funding: A specialist funder pays some or all of the legal costs in return for an agreed return if the claim succeeds. Following the Supreme Court’s PACCAR judgment, funding agreements calculated as a percentage of damages may be treated as DBAs and may be unenforceable if they do not satisfy the applicable rules.
• After the Event (ATE) Insurance: This insurance may cover the risk of having to pay the defendant’s legal costs if the claim is unsuccessful.

The procedural steps to join a group register

If you join a claim managed under a GLO in England and Wales, you will go through several structured procedural stages:

1. Finding a Lead Solicitor: The court usually appoints a lead solicitor to manage the group register and handle communications with the court.
2. The Application: You must provide your details to the solicitor, who will check if your claim matches the specific GLO issues set by the court.
3. Entry on the Register: Following Practice Direction 19B, your claim must be formally issued before it can be added to the official group register.
4. The Test Claim: The court may select specific claims to proceed as test cases. The outcome of these cases may determine the result for everyone on the register.
5. Cost Sharing: CPR 46.6 distinguishes between individual costs and common costs. Unless the court orders otherwise, each group litigant is liable for an equal proportion of the common costs, in addition to the individual costs of their own claim.

FAQs

What is a class action lawsuit and how is it different from a normal lawsuit?
A class action involves many people suing together over the same issue. A normal lawsuit involves just one person or entity. Group litigation is more efficient for the court and more affordable for claimants because costs are shared.

Can I start a group claim myself?
In England and Wales, you can issue an individual claim, but a Group Litigation Order must be made by the court. In Scotland, group proceedings require the permission of the Court of Session. Because these procedures are complex, specialist legal advice is usually necessary.

What happens if the group litigation is successful?
The court awards compensation. In a GLO, damages are usually calculated based on each person’s individual loss.

Group litigation helps individuals pursue justice against powerful entities when bringing a claim alone would be challenging or costly. Through GLOs and other collective action routes, UK law provides a way for claimants to seek compensation, share resources, and access specialist legal support.

This guide provides general information only and does not constitute legal advice.

Unable to make a claim on your own? You may still have options. If your case is linked to a wider issue or the defendant is unwilling to cooperate,

Qredible’s network of specialist solicitors can help you explore group litigation and pursue the compensation you may be entitled to.

KEY TAKEAWAYS:

• Group Litigation Orders (GLOs) in England and Wales follow an opt-in model: You must actively apply to join the group register to benefit from court judgments on common issues.
• Representative actions require the “same interest”: One person can represent many, but the court strictly requires that the interest and the loss be virtually identical for all members.
• Opt-out claims are available for competition law: The Competition Appeal Tribunal allows for US-style collective proceedings where you are included automatically unless you choose to opt out.