European truck manufacturers have – by their own admission except for Scania – committed a serious violation of competition rules at senior manager level and have collectively been fined £3.4 billion by the European Commission. Over a 14-year period, the manufacturers agreed gross list prices and delayed the introduction of more fuel-efficient emissions technologies
The RHA, as the dedicated trade body for road haulage in the UK, and its subsidiary, RUTL, is bringing a collective claim for compensation on behalf of operators (both members and non-members alike) before the Competition Appeal Tribunal in London
Before continuing, you should read here the official so-called “Rule 81 Notice” approved by the Tribunal which provides details on the claim and how to opt in.
The European truck manufacturers (MAN, Volvo/Renault, Daimler/Mercedes, Iveco, DAF, and Scania) have been found guilty of a serious abuse of EU competition rules – indeed, all but Scania admitted their guilt. Over a 14-year period, the manufacturers at senior manager level agreed gross list prices, agreed the cost that truck purchasers should be charged for emissions technologies (Euro 3, 4, 5, and 6), and delayed the introduction of emissions technologies. For more details, please click here.
We believe that you paid too much for trucks you purchased or leased during the cartel and for a period afterwards and that you are entitled to be compensated for the overcharges imposed by the truck manufacturers. The European Commission fining decision will prove the manufacturers’ liability before the Competition Appeal Tribunal.
The RHA and RUTL have only limited information available about the value of the claim at the moment. This is because the cartel operated in secret and only limited details have been published by the European Commission so far. It is therefore difficult to predict the level of potential compensation that might be awarded. The RHA and RUTL will nevertheless be seeking to recover the difference between the price the trucks should have cost in a competitive market as compared with the cartel prices, as well as any other increases in road haulage operators’ costs – for example in relation to fuel – resulting from the cartel activities.
The RHA considers that the overall level of compensation to be awarded may exceed £2 billion.
All brands of truck, including DAF, Daimler/Mercedes, Iveco, MAN, Renault, Scania, and Volvo
New trucks purchased (either outright or on finance) or leased between 17 January 1997 and 31 January 2014
Second-hand trucks purchased (either outright or on finance) or leased between 17 January 1997 and 31 January 2015. However, because the infringement period was between 17 January 1997 and 18 January 2011, it is possible that you will not have a viable claim for the additional period of time (known as the “run off period”), or that the run off period will be shorter. This will be determined in the legal claim.
Trucks of 6 tonnes and over registered in the United Kingdom
Any firm, company, or individual who entered into a contract for the purchase or lease of a new truck between 17 January 1997 and 31 January 2014, or for the purchase or lease of a used truck between 17 January 1997 and 31 January 2015,provided the truck was registered in the UK for road haulage operations (both hire and reward and own-account).
You do not need to be an RHA member to join the claim.
Personal representatives of the estate of any person falling within the class who died on or after 18 July 2018 can also sign up.
Note that you cannot join the RHA’s claim if you are already bringing legal action against the truck manufacturers in relation to the cartel unless you discontinue or apply to stay those proceedings.
Note also that you cannot join if your business provided road haulage services exclusively on a cost-plus (or “open book”) basis where the customer of the haulage services paid in full for the cost of the trucks used to provide the service and that customer could inspect your books. Similarly, any truck that was used for road haulage services provided on a cost-plus basis cannot be included within the RHA’s proceedings. Also, if you were the recipient of road haulage services provided on a cost-plus basis and paid for the cost of the trucks used to provide those services, you will not be able to claim within the RHA’s proceedings for the cost of such trucks.
You cannot claim on behalf of any person who died before 17 July 2018 or for a legal entity that has been dissolved for a continuous period of more than 6 years since 17 January 1997 (unless the right of action by that legal entity was transferred to another legal entity which does exist).
You also cannot join the RHA’s collective claim if you purchased or leased trucks as a consumer (e.g., for transporting horses). For more information, please contact Backhouse Jones on 08450 30 50 30.
While it could take several years for the case to conclude, there will be every opportunity as the RHA presents the case to the truck manufacturers for settlement to be earlier.
The collective legal claim relates to the purchase of both new and used trucks given that the cartel may have had an impact of the prices of both of these. There is a conflict of interest between purchasers of new trucks and purchasers of used trucks. This is because those who purchased new trucks have an interest in showing that none of the higher truck prices they suffered as a result of the cartel (overcharge) was passed on when they came to reselling their trucks. On the other hand, those who purchased used trucks will have an interest in showing that the new truck overcharge was passed on to them.
The conflict means that the RHA cannot simultaneously advance the interests of both purchasers of new trucks and purchasers of used trucks. A similar conflict may exist in relation to the leasing of new trucks and the leasing of used trucks. To deal with this, RUTL has been appointed as sub-class representative to act for purchasers and lessees of used trucks on the question of whether they suffered loss as a result of the cartel.
The RHA and RUTL have taken steps to make sure that both new and used truck operators have their interests fully represented. These steps include:
The RHA and RUTL have an insurance policy to cover the risk of paying legal costs to the truck manufacturers if the Claim is not successful. That insurance policy is shared. That means the RHA cannot recover legal costs from RUTL and vice versa, in the event one succeeds in its arguments against the other. The advantage to this is that (a) the RHA and RUTL both avoid the risk of having to pay the other's legal costs, and (b) neither has to expend additional funds to buy further insurance, which would materially reduce any damages payable to the claimants (as it would increase the legal costs of the claim). However, the downside to this is that if one party incurs costs successfully defending an argument from the other, it would not benefit from recovering those costs from the other, and so the overall pot of funds available to distribute to the relevant sub-class would be lower than it may have been. However, the RHA and RUTL both believe the likely cost to the class is lower in this shared policy arrangement and that this arrangement is overall in the best interests of claimants.
The Competition Appeal Tribunal has considered these arrangements and confirmed that they are acceptable.
Further detail on the conflict is set out from page 4 of the Rule 81 Notice here.
The fines imposed in July 2016 and on Scania in September 2017 are the highest fines by far ever imposed by the European Commission for a single violation of competition rules. The manufacturers were party to a cartel from 1997 to 2011, with senior managers involved at HQ level. The manufacturers engaged in various coordinated practices, including:
For more details about the cartel and the European Commission’s findings, please read this document.
The RHA is structuring its claim so that there should be no risk for you or other operators in joining the claim and nothing to pay even if the case is unsuccessful.
The European Commission decisions prove liability before UK courts. To obtain compensation, it will be necessary for the RHA to evidence that the Truck Cartel caused hauliers loss and the amount of loss.
Registered Address:
RHA
RHA Worldwide House
Thorpe Wood
Peterborough
PE3 6SB
t: 08450 30 50 30
w: www.rha.uk.net
e: truckcartel@rha.uk.net
Backhouse Jones
The Printworks
Hey Road
Clitheroe
BB7 9WD
t: 01254 828 300
w: www.backhousejones.co.uk
2017 ® RHA & Backhouse Jones Solicitors. All rights reserved.
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