Representative actions curbed

Representative groups will not have a general right to bring actions on behalf of individuals, the government decided last week.

The results of a consultation on the issue, which found overall support for the principles of such actions, have led the Lord Chancellor's Department to look instead for particular issues and areas where there is evidence that it would be beneficial to allow representative bodies and third parties to act.

There was strong support to introduce a 'permission stage' for organisations which want to act in a representative capacity, as well as a general feeling that these actions raise difficult legal problems in relation to causation, remedies and costs that would require legislation.

Representative bodies were mainly in favour of having a general right, while business respondents were concerned about spurious claims.

The judiciary and lawyers were split: some favoured the proposals as a means to extend access to justice, while others had fundamental concerns about radical changes to the relationship between parties to proceedings.

Laurel Harbour, senior partner in the London office of US firm Shook Hardy & Bacon, which replied to the consultation, questioned whether groups were better suited than individuals to take their cases to court.

'We need to have more faith in the justice system to recognise valid cases on an individual basis, and we need to protect people with bona fide claims who are bringing them independently,' she said.

Another respondent, London firm Bates Wells Braithwaite took a different view.

A spokesman said: 'We welcome the overall direction of the proposals, and agree that better access to justice will be achieved if a wider range of parties are empowered to protect the interests of those they represent.'

The Law Society also welcomed the possibilities for widening access to justice.

But it stressed the need for caution 'particularly in relation to balancing the needs of claimants and defendants, and protecting them from frivolous and expensive claims, and the introduction of new and far reaching legal principles by the back door'.

Clifford Chance, Herbert Smith, Irwin Mitchell, Lovells, Thompsons and Wragge & Co were among other respondents.

Victoria MacCallum