‘Groundbreaking’ class action against vehicle shipping cartel to proceed, says court

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A class action against five of the world’s leading car shipping companies for price fixing has been given the green light to go ahead, potentially bringing around £150m (180.3m) in compensation to fleets and drivers for vehicle overpayments.

The class action covers motorists and businesses in the UK who bought or leased a new car or van between October 2006 and September 2015, to claim against five shipping companies that imported vehicles into Europe.

London’s specialist competition court, the Competition Appeal Tribunal, has approved the class action, which was filed two years ago and covers motorists and businesses who bought or leased a new car or van between October 2006 and September 2015, to claim against five shipping companies that imported vehicles into Europe.

The European Commission (EC) has already found that the maritime car carriers fixed prices, rigged bids and allocated the market for roll-on, roll-off (‘RoRo’) transport.

According to the EC, the carriers had agreed to maintain the status quo in the market and to respect each other’s ongoing business on certain routes, or with certain customers, by quoting artificially high prices or not quoting at all in tenders for vehicle manufacturers.

The class action follows on from the EC decision; said to be the first of its kind to be filed in the UK, it’s estimated to be worth around £150m in damages.

The Tribunal has authorised the claims to continue as collective proceedings, meaning that millions of motorists and businesses who bought or leased a new car between October 2006 and September 2015 could be in line for compensation because of the additional cost passed on in the price of their vehicles by the higher transport charges which resulted from the operation of the cartel. These individuals and businesses will now automatically be represented at court, unless they choose to leave – or opt out – of the claim.

A special purpose company led by Mark McLaren, formerly of The Consumers’ Association, will act as the class representative, represented by the London office of international law firm Scott + Scott, and barristers from Brick Court chambers, funded by Woodsford.

Woodsford’s chief investment officer Charlie Morris commented: “This is an important milestone in the promotion of collective redress in the UK, which allows consumers and small businesses to achieve compensation for the wrongs committed by big business. Woodsford, a business dedicated to holding corporates to account and delivering access to justice, is proud to support Mr McLaren, who is now much closer to obtaining compensation for the millions of consumers and businesses who have been overcharged.”

For details of the class action, click here.

For more of the latest industry news, click here.

Natalie Middleton

Natalie has worked as a fleet journalist for nearly 20 years, previously as assistant editor on the former Company Car magazine before joining Fleet World in 2006. Prior to this, she worked on a range of B2B titles, including Insurance Age and Insurance Day. Natalie edits all the Fleet World websites and newsletters, and loves to hear about any latest industry news - or gossip.