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Class action plan hits the buffers
The Ministry of Justice has rejected proposals from the Civil Justice Council for primary legislation to create a new class action regime.
The CJC recommended in December 2008 that a class action regime should be introduced so that individual representatives or organisations could bring actions on an opt-out or opt-in basis.
In its response, published amid a snowstorm of ministerial statements, many of them negative, the MoJ rejected the idea of a generic collective action.
The Ministry of Justice has rejected proposals from the Civil Justice Council for primary legislation to create a new class action regime.
The CJC recommended in December 2008 that a class action regime should be introduced so that individual representatives or organisations could bring actions on an opt-out or opt-in basis.
In its response, published amid a snowstorm of ministerial statements, many of them negative, the MoJ rejected the idea of a generic collective action.
Instead, it suggested that a “sector based approach” would produce a better outcome and be more achievable.
Although officials said they accepted the CJC’s conclusion that there may be some cases where actions could be brought more effectively on a collective basis, they added that “adversarial civil litigation is inherently risky and can be very costly”.
The MoJ said the government believed that class actions should only be allowed where there was “clear evidence of need” and no reform should be introduced without a full assessment of the likely economic impact.
Although officials said they accepted the CJC’s conclusion that there may be some cases where actions could be brought more effectively on a collective basis, they added that “adversarial civil litigation is inherently risky and can be very costly”.
The MoJ said the government believed that class actions should only be allowed where there was “clear evidence of need” and no reform should be introduced without a full assessment of the likely economic impact.