First UK major cartel collective action trial for Car Delivery Charges case is being heard by the Competition Appeal Tribunal
- The case was initially filed against five of the world’s biggest shipping companies – MOL, “K” Line, and NYK, WWL/EUKOR and CSAV.
- Three of those cartelists have already settled – “K” Line, WWL/EUKOR and CSAV.
- Over 17 million cars and vans bought in the UK are said to have been affected.
- Around 50% are expected to have been bought or leased by UK businesses.
- The claim involves the sale or lease of new vehicles from brands including Ford, Vauxhall, Volkswagen, Peugeot, BMW, Mercedes-Benz, Nissan, Toyota, Citroen and Renault between October 2006 and September 2015.
- This is the first major cartel collective (class) action to be heard at trial in the UK.
- The trial focuses on the remaining defendants MOL and NYK, who had a global market share of around 47.7%, is valued at around £100 million.
LONDON, United Kingdom—The trial in the Car Delivery Charges legal action against a shipping cartel brought by Mark McLaren, class representative acting on behalf of UK consumers and businesses who purchased or leased new cars and vans between October 2006 and September 2015 will commence on Monday 13 January 2025 at the Competition Appeal Tribunal (CAT). The trial is scheduled to last for nine weeks.
The trial is against the two remaining defendant shipping companies in the cartel, MOL and NYK who represent 47.7% of the cartel. The claim against these remaining defendants is valued at around £100 million. Mark McLaren has already secured £38.75 million in settlements with three of the defendants WWL/EUKOR, “K” Line and CSAV, which have been approved by the CAT.
Over 17 million cars and vans bought in the UK are said to have been affected by a market sharing and price-fixing scheme run by international shipping firms MOL, “K” Line, NYK, WWL/EUKOR and CSAV. Those affected are consumers and businesses who bought or leased new vehicles from many of the leading brands including Ford, Vauxhall, Volkswagen, Peugeot, BMW, Mercedes-Benz, Nissan, Toyota, Citroen, and Renault between October 2006 and September 2015. Around 50% are expected to have been bought or leased by UK businesses.
Distribution of compensation to class members is likely to take place following judgment in the trial. Consumers and businesses can receive updates about the claim and find out if they are entitled to receive damages here: https://www.cardeliverycharges.com/
This legal action follows the European Commission’s ruling on 21 February 2018 that the above shipping companies had violated EU competition law and were made to pay fines of over €395m.
Mark McLaren, class representative said: “In the 5 years since I launched this claim, my confidence in the case has only grown and I am very hopeful that the Tribunal will award damages to the millions of UK businesses and consumers who suffered loss as a result of proven anti-competitive, cartelist behaviour. I am proud to have already secured almost £40 million through a series of settlement agreements, and I look forward to adding to this pot of money following the trial against the remaining defendants to ensure that those who have suffered a loss can be compensated and that these shipping companies, which are amongst the world’s largest, don’t get away with it.”
Belinda Hollway, Partner of Scott+Scott London said: “This trial marks a very significant milestone in the case and is the culmination of five years of hard work and dedication. We are encouraged by the Tribunal’s approval of three settlement agreements already in this case, which demonstrates the power of the UK opt out regime to secure compensation for class members. We are confident that the trial will expose how the cartel harmed UK businesses and consumers, and that the Tribunal will award meaningful compensation for that harm.”
Charlie Morris, Chief Investment Officer of Woodsford, which is funding the legal action, said: “Woodsford is proud to be supporting this landmark legal action, which is the first major cartel collective action in the UK to be heard at trial. This important claim underscores that companies who breach competition law and engage in cartelist behaviour will be held accountable.”
McLaren, formerly at Which, the Consumers’ Association, has instructed Scott+Scott UK LLP, a specialist dispute resolution firm whose solicitors have extensive expertise in competition litigation. The Class Representative has also instructed a highly experienced barrister team led by Sarah Ford KC and Sara O’Keefe of Brick Court Chambers and Nicholas Gibson of Matrix Chambers. The collective action is being funded by Woodsford, a leading global collective redress and litigation finance business.