England & Wales
Implementation of the European Directive on representative actions
Which national regulations transpose the Directive into national law?
The directive does not apply in England and Wales due to Brexit.
In England and Wales, there is no dedicated class action regime. Claims in which multiple claimants seek similar relief can however be brought in a number of ways:
- Group litigation orders (GLOs): A GLO is an order of the court, made where multiple claims give rise to common or related issues of fact or law. These are opt-in claims where a claimant must take positive action to join the action and damages are often assessed on an individual basis following judgment. A GLO is publicised and has a cut-off date by which any claimant wishing to join the action must do so. Any judgment on a GLO issue will bind all other claims listed on the GLO register. The use of GLOs has declined in recent years (although there has been an increase recently in relation to certain types of claims).
- Representative action under Civil Procedure Rule 19.8: Representative actions can be brought by a representative claimant on behalf of persons who have the “same interest” in a claim. They can be opt-out claims (ie, all members of the class will automatically be included, unless they opt out). In order to be classed as a representative action, all of the class must have the same interest in the litigation. This requirement is tightly controlled by the court to ensure that the representative can be relied on to conduct litigation in a way which promotes and protects the interests of all members of the represented class. If the court is satisfied that this test has been met, it has discretion to order that the claim proceed as a representative action. The successful use of this regime has to date been relatively limited, although there has been an increase recently in claims seeking to using this procedure.
- Group litigation managed by the court: The court also has case management powers which allow it to manage similar cases together on a bespoke basis. Such claims are made on an opt-in basis, with one or more claimant law firms bringing claims on behalf of large numbers of claimants. Although these claims may not be suitable for a GLO, they will involve close connections between the issues of fact and law in dispute; and they tend to be managed together by a docketed judge who deals with case and costs management, interim applications and potentially the trial itself. Various test claims will be determined at trial to decide the common issues and other factual and legal matters which will indicate how the remaining claims should be decided. The above three routes are collectively referred to as ‘Court proceedings’ in this entry.
- Competition Appeal Tribunal (CAT): UK law also provides for class actions where there have been breaches (or alleged breaches) of competition law (e.g. an abuse of dominance or anti-competitive agreements including cartels). Since 1 October 2015, it has been possible for claims to be brought by a class representative on behalf of an entire class of claimants, without the need for each member of the class to actively participate in the litigation (so-called “opt out” claims, where class members are automatically involved in the litigation unless they actively choose not to be). In order to proceed, the proposed class representative must apply to the CAT for permission (for a collective proceedings order (CPO)) to bring the claim on behalf of the class and for the proceedings to move forward as a collective action. A CPO may be granted only where the CAT is satisfied that individual claims: (1) raise “the same, similar or related issues of fact or law”; and (2) are “suitable to be brought in collective proceedings”. Since the first CPO was granted in 2021, there has been a steady increase in applications for CPOs.
Who is entitled to bring a representative action?
- Court proceedings: Representative actions: A representative action can be brought by one or more person with the “same interest” in a claim. They must have a common grievance and the relief sought must benefit the whole of the class. Membership of the class can fluctuate, and it does not have to be possible to compile a complete list of the class members when the litigation begins. The test of “same interest” is controlled by the courts. GLOs and group litigation: The standing to bring the claim is the same as for an individual person.
- CAT: In the CAT, collective proceedings can be brought by a proposed class representative on behalf of a defined class of persons. The representative must be authorised by the CAT for the claim to proceed. The class representative need not necessarily be a member of the class and need not have a personal claim against the proposed defendant(s), but the CAT must consider (in accordance with the CAT’s Rules) that it is “just and reasonable” for the applicant to act as the class representative in the proceedings. In doing so, the CAT will consider a number of factors, including whether the applicant would fairly and adequately act in the interests of all class members and does not have, in relation to the common issues for the class members, a material interest that is in conflict with the interests of class members. Where there is a class action in E&W, it does not necessarily mean that all of the claimants are in a single class. There can be more than one class within a class action. Sometimes this is because there are different interests between the classes. It also enables claimant law firms to compete and set up their own classes within a class action (they may seek to lead the litigation and maximise their return).
What can be the subject matter of a representative action?
- Court proceedings: These claims are usually brought on the basis of alleged wrongdoing by defendants said to cause loss to the claimants in the same, or at least similar way – therefore, the claims can include any subject. Class actions in England and Wales are common in relation to a wide variety of claims, including mis-selling, financial services, product liability, equal pay, data and privacy breach, environmental, personal injury and shareholder actions.
- CAT: At the current time the CAT is the only court where it is realistically possible to bring “opt out” claims, and these can only be brought in respect of claims arising out of (alleged, or established) breaches of competition law. However, a number of the opt-out claims currently before the CAT involve consumer and environmental issues which have been framed as breaches of competition law, presumably in order to benefit from the CAT’s opt-out regime.
Which individual consumers are represented in a representative action?
- Class actions can proceed on an opt-out basis in the form of a representative action in the High Court (although there was a recent attempt in a case to proceed on an opt-in basis) or collective proceedings in the CAT.
- Otherwise, class actions (being GLOs, group litigation and other collective proceedings before the CAT) are on an opt-in basis.
What will be the outcome of a representative action?
- Court proceedings: The outcome will depend on the route used to bring the class action. But usually, the court will determine common issues or test cases first (usually on the subject of liability). Such decisions will be binding on all members of the class in the following scenarios: 1. Representative actions: CPR 19.8(4) provides that unless the court orders otherwise, any judgment or order given in a claim in which a party is acting as a representative is binding on all persons represented in the claim. 2. Group litigation orders (GLOs): CPR 19.23 provides that where a judgment or order is given or made in a claim on the group register in relation to one or more of the GLO issues: -- that judgment or order is binding on the parties to all other claims that are on the group register at the time the judgment is given or the order is made, unless the court orders otherwise; and -- the court may give directions as to the extent to which that judgment or order is binding on the parties to any claim which is subsequently entered on the group register. 3. Group litigation: The court will usually order as part of its general case management powers that all the court’s findings on common issues of law and fact in the test claims will be binding on the other parties to the group litigation. Damages are then usually assessed on an individual basis (although remedies can also be non-monetary and include, among other things, declarations and injunctions).
- CAT: In collective proceedings before the CAT, there are generally four stages: 1. The application for permission to bring the claim as collective proceedings (the CPO) 2. Trial of common issues 3. Determination of any individual issues; and 4. Distribution of any damages Under Section 47B(12) of the Competition Act 1998, the judgment of the CAT in collective proceedings is binding on all represented persons unless the CAT specifies otherwise. For opt-in proceedings, this means that a judgment will be binding on all class members that have opted in to the claim; while for opt-out proceedings, a judgment will be binding on all those that have not opted out of the claim.
Are there particular rules for the disclosure of evidence?
- Court proceedings: Civil Procedure Rule (CPR) Part 31 sets out the rules on disclosure and inspection of documents. Disclosure in English proceedings is typically wider than in continental European jurisdictions. Parties must disclose documents that are harmful to their case as well as those that are helpful to it. There is a duty to actively search for disclosable documents. The duty to preserve documents arises as soon as a dispute is in contemplation and the duty of disclosure is ongoing until the case has concluded. Privileged documents are exempt from disclosure. In group litigation orders (GLOs) and group litigation, disclosure will usually be ordered in relation to only a small number of test claimants, although certain disclosure may be ordered against a wider group of claimants in order to assist in the selection of test claimants.
- Competition Appeals Tribunal (CAT): Disclosure in proceedings before the CAT is not automatic and proceeds on the order or direction of the CAT. The CAT will give directions on disclosure under CAT Rule 60 and also applies disclosure-specific Practice Directions. The CAT has regard to the general principles in CAT Rule 4 to ensure that disclosure is limited to what is proportionate in the circumstances, to minimise costs and deal with the claim justly. Under the CAT Disclosure Practice Direction, any application for disclosure must include as narrow and precise a description of the evidence sought as possible.
Is third party funding possible?
- Court proceedings: Third-party funding is permitted. The funder is not permitted to take control of the litigation away from the claimant or to take an excessive share of the recovery. Under English law, there is no requirement to notify an opponent about litigation funding, though this may be revealed if there are concerns about the claimant’s ability to meet any adverse costs order made against it. It is possible for an opponent to seek a court order for the disclosure of the identity of a funder.
- CAT: · Third-party funding is permitted for collective proceedings before the CAT; however, the CAT will consider the potential return to the funder and any potential conflicts of interest that may arise.
Conclusion
Although the Directive does not apply in England and Wales, there are established procedural rules that enable domestic and international class actions to be pursued in the jurisdiction. The different mechanisms aim to enhance access to justice and address wrongdoing by allowing collective action, whilst fairly balancing the rights of Claimants and Defendants. These mechanisms are developing through their use and case law.
Contact

Deborah Polden
T: +44 11 3200 4160 E: deborahpolden@eversheds-sutherland.com

Richard Little
T: +44 20 7919 0602 E: richardlittle@eversheds-sutherland.com

Adam Fisher
T: +44 12 1232 1619 E: adamfisher@eversheds-sutherland.com

Elizabeth Coleman
T: +44 20 7919 4780 E: elizabethcoleman@eversheds-sutherland.com

Jennifer Miles
T: +44 20 7919 0817 E: jennifermiles@eversheds-sutherland.com
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