New collective actions proposal could reshape justice

The Collective Redress Lawyers Association (CORLA) and Winward Litigation Finance have expressed support for the Law Commission's recent proposal to explore an opt-out collective actions regime for consumers in the UK. This initiative seeks to enhance access to justice for large groups of individuals with common claims, addressing the challenges posed by the current legal landscape.

Martyn Day, Co-President of CORLA, expressed that “the Law Commission’s decision to examine the introduction of a consumer class actions regime is a timely and important step towards closing the UK’s justice gap.” He highlighted the limitations of existing avenues for legal recourse available to groups of individuals with shared claims against companies. Day emphasised that creating a mechanism for these groups to unite in legal action would not only empower consumers but also align the UK with European counterparts implementing the EU Representative Actions Directive allowing for opt-out cases.

He further noted, “there is no doubt that a well-designed consumer class actions regime will strengthen access to justice and ensure better corporate accountability in this country.” Day called upon claimant law firms to actively participate in the consultation process to contribute evidence that will be crucial in shaping a fair and effective regime.

Jeremy Marshall, Chief Investment Officer at Winward Litigation Finance, also weighed in on the matter, stating, “the introduction of a consumer class actions regime would be a highly positive step for the UK, strengthening access to justice and ensuring that consumers can seek redress where they have been harmed.” He pointed out that the role of litigation funding is critical for the practical implementation of such a regime, warning that without it, many claims would remain unfeasible.

Marshall urged government officials to learn from successful models in countries like Australia, where funders and consumer groups have collaborated effectively. He concluded that “funding turns legal rights into real-world outcomes, providing justice for consumers and deterring bad corporate behaviour.”