Member Article

Truck Cartel Compensation Set to Reach Billions

asb law has launched a series of no-obligation strategy workshops to support companies seeking guidance on claims for damages against the manufacturers who operated the European Truck Manufacturers’ Cartel.

Understood to be one of the largest cartels in history, spanning a 14-year period between 1997 and 2011, with an estimated 650,000 trucks sold in the UK by six manufacturers, the manufacturers colluded on factory pricing of new models, implementation dates for emissions technologies and passing-on of costs associated with those technologies, to truck purchasers.

With a fleet of 49,000 vehicles, Royal Mail have already launched an individual legal action, as have Veolia, the waste management company. Early calculations suggest that the average compensation, including interest, could be in the region of £13,000 per vehicle, with some companies having significantly larger claims.

Group claims have already made headlines with a number of claimant organisations looking at bringing Class Actions. But according to asb law – the lawyers recommended to Members by the FTA - a more bespoke, tailored approach has the potential to reap the greatest rewards for many clients.

To meet this need in the market, asb law has launched its bespoke Strategy Workshops, offering advice to companies operating trucks in a range of sectors. Spanning logistics, construction, haulage and others, the tailored sessions will outline the available options and the best route (whether an individual or a group claim) for claimants to take. The sessions will additionally help companies to ensure they are organised and take action to do the preparatory work to secure damages well ahead of the limitation period set for commencing court claims.

The claims follow the European Commission’s record-breaking €2.9billon cartel fine in July 2016 for several manufacturers; MAN, Volvo/Renault, Daimler, DAF and Iveco, who all admitted their involvement in the cartel. The Commission has since hit Scania with a €880m penalty in September of last year, after the investigation found them to have also participated in the cartel.

Although MAN was exempt from its €1.2billion fine for blowing the whistle on the cartel, it is still liable for any follow-on damages claims for trucks it sold during the period. Sarah Clark, Barrister at asb law, said: “Based on the damages figures which are being estimated, and the fact that over half a million trucks were sold in the UK over this period, the potential damages will be into the billions.

“Over the past nearly two years, we have been assisting a large and ever-growing group of companies who wish to bring claims (which will deliver significant economies of scale) and have put together an unrivalled team of lawyers, forensic accountants and economists. We have created a bank of specialist knowledge to help companies bolster their claims, as well as securing a market-leading litigation funding solution for companies wishing to remove risk and take the costs of bringing claims, off the books.

“Now, to meet a need that we identified in our conversations, we’re delivering No-Obligation Strategy Workshops and Claim Quantifications, to help provide expert advice to anyone who believes they may have a claim but is unsure of which route to take. Class actions have been widely discussed but are inherently constrained by the lowest common denominator and do not give claimants the autonomy they may desire over the strategy or decision-making in their claim. In addition, no Class has yet been approved by the (relatively new) Competition Appeal Tribunal and so this strategy contains some inherent risks. As such, individual, tailored options will result in far better outcomes for many businesses.

“We are working with companies of all sizes regardless of whether they run large household name fleets with a substantial claim value, or if they’ve leased or purchased just a small number of trucks. Our workshops will inform and advise companies on the prospects of a claim before we work closely with them to provide a proposition, specifically tailored to meet the individual company’s commercial and risk appetite. “asb law’s range of solutions ensures any potential claim is handled in the most efficient, commercial and cost-effective way possible for them.” Kevin Green, Director at the Freight Transport Association, said: “We are advising our Members to consider the best option for them if they are thinking about pursuing truck cartel claims. A class action will not necessarily be their best option. We would advise members to have an initial free and no obligation discussion about their options with our recommended legal firm, asb law. asb law have a deep expertise and knowledge in the logistics sector and have been advising our members on the impact of this European Commission’s decision, since it was first published.”

This was posted in Bdaily's Members' News section by asb Law .