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Civil Litigation

Fair Civil Justice is paving the way to improve the system of redress for both businesses and consumers. Across the U.K, "no-win no-fee" lawsuits are on the rise, with more people falling victim to predatory litigation funders. The damages awarded, which are intended for the consumer, are being received by the lawyers and funders involved, leaving individuals and small businesses short-changed. We believe that litigation has its place, but it should protect people - not come at their expense. We do that by promoting alternatives to litigation that are faster and more effective in resolving disputes.

Scottish Parliament building
Scottish Parliament Chamber

Civil Litigation (Expenses and Group Proceedings) (Scotland) Act 2018

The Scottish Civil Justice Council (SCJC) is exploring changes to Group Proceedings under the Civil Litigation (Expenses and Group Proceedings) (Scotland) Act 2018. These changes aim to introduce a US-style opt-out model.

This presents a number of risks to Scottish consumers, businesses, and the Scottish court system.

    • It can prevent consumers from accessing fair compensation

    • Scottish businesses could face costly, opportunistic claims

    • It could deter future investment in Scotland

    • Scottish courts could become overburdened with claims

We believe that Scotland has the opportunity to go one step further in protecting consumers and inward investment – setting the standard for the rest of the UK.

Civil Litigation Case Studies

Boundary Fares Collective Action

In 2024, Stagecoach settled claims that it had overcharged London commuters for “boundary fares”, agreeing to pay £25m. Despite this, only £216,000 was successfully claimed by passengers, leaving almost £10 million unclaimed.

Much of the remainder now risks being absorbed by lawyers’ and funders’ costs, with class representative Justin Gutmann applying to recover up to £10.2 million in fees.

For UK businesses, the growing appetite for class action lawsuits is having a dramatic impact on confidence and investment. According to a 2024 poll by Gallagher, seven in ten UK businesses said that they were concerned about rising business litigation, 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.

We recognise that litigation and litigation funding have a role to play in facilitating access to justice, but this should not come at the expense of British consumers and businesses.

How You Can Get Involved

We believe that Scotland has the opportunity to go one step further in protecting consumers and inward investment – setting the standard for the rest of the UK. We are calling for Scottish stakeholders to support our efforts in:

    • Promoting litigation as a last resort – ensuring that litigation measures are used appropriately, as a last resort, and with robust protections for Scottish consumers and businesses.

    • Safeguarding Scotland’s overburdened court system from a surge in US-style mass litigation, which risks further delaying proceedings, serves neither Scottish businesses nor consumers.

    • Promoting the most cost-effective routes to redress for Scottish consumers – protecting them from potential exploitation by third-party litigation funders.

    • Campaigning for better regulation of Third-Party Litigation Funding (TPLF) providers – ensuring transparency and a better duty of care to consumers.

Those with an interest in group procedure are encouraged to submit evidence to the Scottish Civil Justice Council consultation, which can be found here: SCJC Consultations

Submissions for evidence will close on Friday, the 23rd of January 2026.