Carter: Impactful use of the money
The Competition Appeal Tribunal (CAT) has approved an agreed £3.8m payment from unclaimed damages in a collective action to the Access to Justice Foundation (ATJF).
The ATJF said it had already consulted key partners on how to allocate the money and will publish a funding strategy in the next month, with an open funding round to follow in early 2026.
The landmark decision came in the case brought by Justin Gutmann alleging that various train companies unlawfully abused a dominant position by failing to make so-called boundary fares sufficiently available to consumers holding valid travelcards, meaning they were charged twice for part of the same journey.
In May 2024, the CAT approved the settlement of the claim against Stagecoach South West Trains for up to £25m, with an estimated 1.4m rail passengers potentially eligible for a share.
However, only £216,500 was claimed by class members and, under the settlement, it was for the CAT to decide how almost £10m of unclaimed damages should be distributed. Mr Gutmann’s costs have yet to be settled and could have consumed the whole amount.
The CAT had previously said that, given the “very low take-up” of damages, it would consider a “substantial payment to charity” and ahead of the stakeholder entitlement hearing last week, all of the parties – including Mr Gutmann, his funder Woodsford and his lawyers, London firm Charles Lyndon – agreed the £3.8m.
Hodge Malek KC, chair of the CAT, commended the parties for doing so.
Charles Lyndon had previously said it supported a payment to the ATJF of £5-6m.
Clare Carter, chief executive of the ATJF, said: “The tribunal has recognised our unique position and expertise in making impactful use of unclaimed damages. It’s crucial that collective actions deliver real benefits to the public and we’re able to work collaboratively to make sure these funds reach the people who need them most.”
Gerard Rothschild of Brick Court Chambers and Richard Pike, partner at City firm Fieldfisher, acted pro bono for the ATJF.
Mr Pike added: “This is a significant moment for collective actions in the UK. The tribunal’s approval of the payment to the ATJF demonstrates how such proceedings can deliver tangible public benefit.”
The tribunal’s ruling on how the rest of the money is to be distributed is now awaited. We reported last month that business lobby group Fair Civil Justice was given permission to intervene in the hearing.
In a statement ahead of the hearing, the group said: “Allowing the litigation funders to profit from a case that has demonstrably failed consumers, as evidenced by the low take-up rate, would create a perverse incentive to file further similar claims.
“It implies that, even when a distribution plan has been approved, the real-world outcome for claimants is irrelevant to the funders’ financial returns.”
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