CAT grants CPO to RHA and RUTL: collective claims by Buyers and Lessees of new and used trucks can proceed against Trucks Defendants

05/08/24

On 2 August 2024, the CAT handed down its judgment granting certification to the Road Haulage Association (RHA) and RHA Used Trucks Limited (RUTL) to pursue opt-in collective proceedings against truck manufacturers MAN, DAF and Iveco. By the claims, the claimants allege that the trucks cartel in which those trucks manufacturers were found by the European Commission to have participated with others inflated the prices of new and used truck purchases and leases.

The  judgment is the latest in a long-running battle for certification, which began with a carriage dispute between the RHA and UKTC (in which the RHA prevailed) and included the Supreme Court’s important judgment in PACCAR, addressing the lawfulness of funding arrangements whereby funders might receive a portion of the damages won in collective proceedings (damages-based agreements).

On appeal from the carriage dispute (above), the Court of Appeal ruled that a conflict of interest existed in the context of resale pass-on between new and used trucks buyers. The former group would wish to contend that there was little or no pass-on, whereas the latter group would wish to contend otherwise. The Court ruled that this conflict could only be resolved by creating within the RHA claimant class a used-trucks sub-class, with a separate used-trucks sub-class representative, separate representation on conflict issues, separate funding arrangements and a separate expert. The matter was remitted to the CAT to determine the adequacy of the arrangements put in place by the RHA and by the newly-incorporated used-trucks sub-class representative, RUTL, to comply with these directions, and to determine afresh whether to certify the collective proceedings.

Before the CAT at the remittal hearing, the proposed defendant trucks manufacturers again resisted certification, on wide-ranging grounds. Multiple rulings were made in the course of a 2-day hearing in June, with the balance of the issues adjourned to a one-day hearing in July. The judgment is the Tribunal’s judgment on the adjourned issues and final determination on certification. Following certain adjustments and clarifications made by RHA and RUTL and their service of further evidence, the Tribunal dismissed the proposed defendants’ remaining objections to certification and granted the Collective Proceedings Order.  Potential Class Members will now have until the end of the year to opt in to the claims.

The judgment is here.