Key takeaways from our London International Disputes Week session:
As part of London International Disputes Week, we hosted a panel discussion looking at the similarities and differences between the US and UK group action landscapes.
Hosted by Miles Robinson, John Burlingame and Deborah Polden gave an overview on the US and UK mass litigation landscape respectively. We were also delighted to be joined by Adam Heppinstall KC from Henderson Chambers, providing a barrister’s view on developments from both the claimant- and defendant-side perspective, and Steven Friel, CEO of Woodsford, one of the leading funders in this space, which has been involved with many of the leading cases both in the Competition Appeal Tribunal (CAT) and also the developing area of English securities litigation.
Now the dust has settled on the week, Laura Hollowood sets out the key takeaways from the panel below.
The US remains the bellwether
In the US, “bellwether” trials effectively act as test claims. In a similar way, class action trends in the US often act as an early indicator for what may emerge in the UK.
Businesses that monitor US litigation developments can identify potential UK exposure before it materialises.
Collective actions are growing in the UK
Growth in the UK group action is particularly evident in:
Environmental claims
Securities litigation
Competition disputes
Insurance-related claims
The panel also expects increased activity in data breach and social media-related group actions.
The UK’s framework is different
The UK does not have class actions as a well-entrenched feature of its judicial system. Instead, there are a number of procedural mechanisms that can be used, including:
Group litigation orders (GLOs) – Structured process to coordinate the management of claims that involve common or related issues of fact or law.
Omnibus claim forms – Enabling multiple claimants on a single claim form, reducing issue fees. Coupled with proactive case management under the court’s existing powers.
Representative actions under Civil Procedure Rule 19.6 – Enables a claimant to act on behalf of a wider group, but all members must share the “same interest” in the claim, which can be challenging.
CAT proceedings – The CAT’s opt-out regime continues to drive growth in competition-related claims.
The advantages and limitations of each of these was discussed.
Not every US trend translates to the UK
The US benefits from a more developed and structured framework, including:
Federal class actions
Mass tort litigation
Multidistrict litigation
Mass arbitrations
In contrast to the US, the panel’s sense was that English courts apply stricter rules on:
Causation
Damages
Collective recovery
The absence of punitive damages can make certain US-style claims more difficult to replicate in the UK.
What businesses should be doing now
A proactive approach can reduce future litigation risk:
Ensure robust compliance programmes are in place.
Monitor emerging claims trends across the US and UK.
Act early. Employ remediation and redress strategies that could help mitigate the risk of future collective actions.
Watch competitors and regulators
Early warning signs often emerge from:
Competitor litigation – These can highlight emerging risk areas and provide valuable early warning signals.
Regulatory investigations – Shifts in regulation can often foreshadow litigation trends – understanding these early enables better strategic planning.
Sector-wide disputes – Keeping a close watch on claims in your industry can help identify vulnerabilities and strengthen your risk management approach.
Understanding these developments can help businesses prepare before claims arise.
Stay ahead of the curve
Businesses best positioned to manage group action risk are those that:
Track litigation trends closely
Monitor regulatory change
Identify sector-specific vulnerabilities early
Act before issues escalate
Have robust corporate governance and compliance
Prevention remains more effective than defence.
Outlook
The UK group litigation landscape is evolving rapidly. While it remains distinct from the US model, the direction of travel in the UK is clear:
Claimants are becoming more innovative in the mechanisms by which they look to bring group action claims.
As a result, group action is becoming more frequent in the UK.
Businesses that anticipate these trends and developments will be better placed to manage risk and respond effectively.
While there is some difference in opinion between those on the claimant and defendant sides regarding the adequacy of the claims mechanisms already in place, there was clear agreement on one key point: robust corporate governance and compliance is key to minimising claims risk.
