The Road Haulage Association (RHA) is the only trade association dedicated to the UK road transport industry. With 7,000 members and a total truck fleet of 100,000 vehicles, the RHA campaigns for the logistics industry with governmental bodies. The RHA lobbies for change and supports its members with a range of benefits. The RHA offers shop products, training, legal services and insurance to its members at the best possible rates. With 85% of everything bought or sold in the economy travelling on the back of a truck, the RHA keeps the UK economy moving. The RHA campaigns for better facilities for trucks and drivers, improved road building, safer roads, and the RHA is doing its bit to improve the environment too. The RHA is fully committed to safer, cleaner diesel vehicles. All operators regardless of their size are welcome to join the RHA and, because operators are too busy running a business, the RHA fights, lobbies, and campaigns for operators’ interests. To find out more about the RHA, please visit the RHA website.
The RHA recognises that the Truck Cartel is a key issue facing the road haulage sector at this time. Because of the serious abuse of competition rules by the truck manufacturers, operators will have been subject to higher costs in running their businesses for more than a decade. After careful consideration, the RHA announced in August 2016 to bring a collective claim before the Competition Appeal Tribunal in London to secure compensation for any person or business that purchased or leased trucks since January 1997. The European Commission’s decision in the Truck Cartel case will prove before the Competition Appeal Tribunal that the truck manufacturers are liable for a violation of the EU competition rules and it will therefore be necessary for the RHA to show that the Truck Cartel caused operators loss and the amount of that loss.
While the RHA is having its costs associated with the claim covered by the litigation funder, the RHA will not profit from the collective claim. RUTL will have its costs paid out of the monies awarded to the used truck operators. Operators will be able to “stand behind” the RHA, which will front the claim on behalf of operators. The RHA is well aware that truck operators need to have business dealings with the manufacturers after the claim and therefore will conduct the proceedings in a measured and constructive manner. The claim will be run as a collective claim, meaning that many claimants will claim together at the same time. This brings with it a number of advantages for the claimants, including costs savings and a stronger position from which to conduct negotiations.
Since announcing its decision in August 2016 to bring a collective claim against the truck manufacturers, the RHA has been working hard to take the case forward. This includes (a) putting a legal team in place, (b) lining up an economic consultancy, (c) negotiating with a litigation funder who will pay to bring the case, (d) putting insurance in place in case the RHA is not successful, and (e) developing the case against the truck manufacturers. The RHA and RUTL have now been authorised by the Competition Appeal Tribunal to proceed with the only collective claim on behalf of the UK road haulage industry.
The RHA has teamed up with Backhouse Jones and Addleshaw Goddard, as well as barristers from Exchange Chambers in Manchester and Brick Court Chambers in London.
Backhouse Jones is the UK’s leading firm of solicitors dealing with the transport industry. The firm has a strong heritage within the transport industry and provides industry-specific advice to its portfolio of transport clients ranging from multi-nationals to entrepreneurial start-ups. Backhouse Jones has worked on complex litigation cases, including representing operators in multi-million pound claims for compensation from the UK Government arising out of the foot-and-mouth crisis.
Exchange Chambers is an award-winning set of chambers, consistently ranked as a leading national set with a proven track record in all major areas of law. The team from Exchange Chambers includes David Went who has been recognised as a leading UK competition lawyer and has consistently been ranked in legal directories since 2010, including a top-tier ranking in Chambers & Partners.
Addleshaw Goddard is one of the UK’s largest law firms with considerable experience in large-scale and complex multi-party litigation, including competition law disputes.
James Flynn KQC is one of the UK’s foremost competition law litigators. His wide experiencIe at the Bar builds on his years of practice at a magic circle law firm in London and Brussels, together with his work as a Legal Secretary at the European Court of Justice.
RUTL has appointed the law firm Tyr Law and barristers from Brick Court Chambers and 4 Pump Court.
Tyr Law is a boutique commercial law firm with significant experience in dealing with complex commercial issues for regional, national and international clients, including cartel actions in the Competition Appeal Tribunal.
4 Pump Court is recognised for its expertise in the transport industry and its commercial litigation practice. Legal directories have commented that it punches well above its weight in terms of quality and breadth of experience. The team from 4 Pump Court includes Laurence Page who is a leading commercial barrister who is recognised as a top-tier barrister in Chambers & Partners.
David Scannell KC is recognised as a leading silk in competition law. He has extensive experience in all aspects of competition law and has acted as leading counsel in other cartel actions in the Competition Appeal Tribunal.
For more details on the RHA and RUTL’s legal team, please read this document.
The RHA and RUTL have chosen leading economic consultancy firms, The Brattle Group and Kairos Economics, to assist with assessing the amount of compensation owed to operators because of the cartel.
The RHA and RUTL have finalised deals with Therium, a third-party funder, so that operators can opt in to the claim for compensation without needing to pay any of the costs of bringing the claim. The RHA and RUTL have secured very competitive deals which have been approved by the Competition Appeal Tribunal as part of the Tribunal permitting the RHA and RUTL to proceed with the collective claim. As you know, the RHA and RUTL do not intend to profit from bringing this claim, which means that a greater amount of the compensation will go to operators.
The RHA and RUTL in bringing the claim for compensation on behalf of operators will be putting themselves at risk of having to pay defendants’ costs if the case is lost. It is important to remember in this context, however, that liability has been established against the truck manufacturers by the European Commission’s decision and this already significantly minimises the risk. There are limited circumstances in which operators also might be ordered to pay costs where issues arising in the litigation apply only to an individual operator. The RHA and RUTL have nevertheless taken significant steps to protect themselves and you from needing to pay any costs by obtaining insurance cover for the RHA, RUTL and you so that, if the case is lost, it will be the insurers who pay the other side’s costs up to the level of the amount insured. Operators signing up to the RHA’s case will not need to pay anything upfront for the insurance cover.
The RHA, RUTL and their legal teams have been carrying out significant due diligence through meetings with operators and business people with knowledge of the sector. As a result, the RHA and RUTL have gained unrivalled industry insight as to how the cartel operated and has formed a robust view as to the shape of the case and what impact the cartel had on truck prices.
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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