Frequently Asked Questions
What is the campaign and what do you want to achieve?
Fair Civil Justice (FCJ) is a campaign to level the playing field for British consumers, businesses and the courts from the growing threat of predatory litigation. We do that by promoting alternatives to litigation that are faster and more effective in resolving disputes.
The campaign was established in 2022 and is formally backed by the British Chambers of Commerce, the UK Finance and Leasing Association and a wide range of British businesses.
Our aim is to promote fair access to justice for claimants – and consumers generally – when they have experienced material harm. When people face problems, those need to be resolved, whether that’s through repair, replacement, mediation, Ombudsman systems or companies’ in-house grievance systems. Collective actions should be not the first port of call but a last resort.
When going to court is the best course of action, we argue for stronger safeguards in the process. When consumers go to court, they deserve to keep more of the pound in their pocket, rather than lose the lion’s share to lawyers and unaccountable litigation funders. Businesses also deserve a fair playing field to ensure that the onslaught of litigation is not impacting on their willingness to invest in Britain, which will have serious consequences for growth and prosperity in the country.
Who funds your campaign?
The campaign is funded by our supporters, which includes a diverse number of British businesses and trade bodies.
What is wrong with the current system in the UK?
The civil justice system in Britain today is not working as well as it should be. We are moving towards an increasingly predatory claims culture; one that is opaque and where regulation has struggled to keep pace. Since 2015, competition class actions encompassing more than 500 million class members have been brought in the UK, which translates to more than 8.1 actions per person.
As a consequence, lawyers and funders have benefited, instead of consumers and claimants. Because we know from the U.S. and other countries that an overly litigious system is ultimately harmful to consumers, employers and the wider economy, our mission is to drive a better policy framework that levels the playing field for consumers, businesses and the courts. A profit-driven litigation culture does not benefit consumers – it pushes up costs and therefore prices, and clogs up the civil courts. Litigation is rarely the most effective way to pursue redress.
Are there risks for consumers when joining a group action claim?
There are many risks involved with joining group litigation claims. Litigation is extremely expensive, and consumers need to pay for their lawyers via deductions to their settlements and damages awards, even under “no-win/no-fee” arrangements.
However, because of the almost total lack of oversight of the funding sector, consumers are typically not able to access key information about the risks they face and are obliged to sign confidentiality agreements that prevent them from talking about them. This lack of transparency exposes consumers to serious risks when things go wrong, including, most shockingly, in the cavity wall insulation (CWI) scandal, which left thousands of homeowners in England and Wales facing legal bills of up to tens of thousands of pounds after the law firm representing them went bust.
What impact is this issue having on the wider economy?
The evidence is clear that the trend towards more predatory litigation is having a dramatic impact on the economy. Seven in ten UK businesses said that they were concerned about rising business litigation this year, with nearly three quarters reporting an increase in cases brought against their companies over the past five years and three in five anticipating a further rise over the next 12 months.
Small and medium sized businesses, which make up the backbone of the UK economy, are having to devote time and resources towards fending off litigation, when they could be investing this capital in R&D, new factories, and jobs and apprenticeships. By failing to tackle the issue, we risk creating an environment as litigious as that of the US, where SMEs bear 53% of the cost of litigation – amounting to around $181 billion annually. The shift towards a more litigious environment has also had a clear impact on global businesses investing in Britain. Many of these companies created millions of jobs in the UK, contribute significant tax revenues to fund public services, and deliver world-class products and services for consumers. Yet, they are increasingly under attack by class action lawsuits. This makes the UK a less attractive place in which to invest and do business and undermines the UK’s ambition to be ‘open for business.’
Is Fair Civil Justice only a campaign to protect the interests of big business?
No. FCJ is a pro-consumer campaign, and we work hard to promote safeguards to better protect consumers. We have consistently called for adequate shares of compensation for consumers, greater transparency over funding agreements and clarity over adverse costs in ‘no-win/no-fee’ advertising.
We are, however, concerned about the threat to the economy, which this growing trend for class action lawsuits poses to the UK. The evidence is clear: seven in ten UK businesses say that they are concerned about rising litigation, with three in five anticipating a further rise over the next 12 months. Small and medium sized businesses, which make up the backbone of the UK economy, are having to devote time and resources towards fending off litigation, when they could be investing this capital in R&D, new factories, and jobs and apprenticeships.
Are there other redress mechanisms that exist for consumers when things go wrong instead of going to court?
There is almost always an alternative to litigation that offers timelier, more cost-effective routes to redress. This includes alternative dispute resolution (ADR), such as mediation and ombudsman services.
More straightforwardly, the issue can often be resolved through an existing complaints procedure offered by the company to their customer. Transparent and easy to use complaints procedures are a common feature of those doing business responsibly in the UK, especially for household names that want to build brand loyalty and increase customer retention.
The airline industry is a good example. When your flight is cancelled or delayed over a certain amount of time, your rights are clear. You will know that your airline should have a transparent and fast complaints procedure in place that is easy to navigate.
Rather than being encouraged to enter litigation against the airline, most people know that they can do it themselves and keep 100 percent of the pound in their pocket.
Because litigation is so expensive, some advocates for third-party litigation funding (TPLF) say that it can be a vital lifeline to secure access to justice, such as in the Postmaster Horizon IT case. Is that correct?
The Post Office Horizon scandal was a tragic miscarriage of justice that changed the lives of hundreds of postmasters and their families.
But there has been little focus on the people who took the lion’s share of the settlement money — the litigation funders.
As claimant Sir Alan Bates has said himself, the presence of litigation funding made the fight for justice possible. It took the case from Fenny Compton Village Hall to the High Court, securing justice, exposing the truth and clearing their names and reputations.
However, the funder and advisors took £46 million from the £58 million total settlement – almost 80 percent – leaving the funded claimants with £20,000 each on average – far less than their losses and what they expected.
Consequently, the Government was required to announce plans for a further redress scheme from taxpayers’ money. It has been reported since that some of those postmasters are not happy with the original deal they signed and have demanded a regulatory investigation into the funder.
How can consumers and/or businesses get involved with the campaign?
There are a variety of ways to get involved and support our growing campaign. For consumers, they can sign up to receive our updates and newsletters and receive information about upcoming events. They can also write to their local MP to raise any concerns that they might have.
For corporates big and small throughout the UK, we do not currently offer formal membership, but do offer a number of benefits for supporters. This includes events, research, tools and resources to positively shape the policy environment.
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