Thursday, 2 March 2006

EU CLASS ACTIONS:

A PRACTITIONER’S VIEWPOINT

Presented by

Paul Llewellyn

LORD STEYN HAS OBSERVED:

“The question is sometimes raised whether (our) system should be replaced by the system of class actions as it is known in the United States….. Massive awards for injuries, which are not of a serious kind, would rightly not be tolerated by English public opinion. (Further), it is a feature of class actions in the United States that firms of lawyers earn billions of dollars in cases which do not even come to trial and often result in meagre recoveries by individual claimants. This too would be unacceptable in England.

LORD STEYN HAS OBSERVED (cont):

Finally, I would say that in England there is a general perception among judges, in this respect reflecting public opinion, that the tort system is becoming too expensive and wasteful. There is also an unarticulated but nevertheless real conviction among judges that we must not allow our social welfare state to become a society bent on litigation. The introduction of United States-style class action cannot but contribute to such unwelcome developments in our legal system”

THE HOUSE OF LORDS’ IN TOMLINSON V. CONGLETON BOROUGH COUNCIL AND OTHERS:

“The pursuit of an unrestrained culture of blame and

compensation has many evil consequences and one is

certainly the interference with the liberty of the citizen”.

MICHAEL HAUSFELD:

“…a crusade to export America’s legal system around the world”.

“The future in Europe for both law and society is good”.

WHERE ARE WE GOING?

EUROPEAN MOTIVES

Enhancing access to justice

Providing effective remedies

Deterring corporate malpractice

Maintaining fair competition

EUROPEAN RESTRAINTS ON CLASS ACTIONS

No juries

No punitive damages

No contingency fees

Loser pays

Limited discovery

THREATS TO THE RESTRAINTS

Changes in litigation culture

Raising of claimant expectations

Changes to meet disappointed expectations

The privatisation of proceedings

EU initiatives

EU GREEN PAPER ON PRIVATE ANTITRUST CLAIMS

Class actions Greater discovery Double damages Loser does not pay

“…encouraging a competition culture, not a litigation culture.”

IN THE UK

The Women & Work Commission Reports

Better Regulation Task Force Report on legal redress

WHERE IS THE NEED?