Last month ESSA received a communication from The Road Haulage Association (RHA) bringing to our attention a legal claim that RHA is bringing before the Competition Appeal Tribunal in London for compensation arising from the EU Trucks Cartel.

The RHA believe that the claim may potentially benefit some ESSA member companies financially. The RHA already has over 8,000 truck operators signed up or registered to its legal claim but wants to ensure that all truck operators have a chance to join the claim.

Background

The European Commission fined five European truck manufacturers (MAN, Volvo/Renault, Daimler, Iveco and DAF) almost £3.4 billion in July last year – the highest fine by far ever imposed by the European Commission. The manufacturers – at their own admission – were party to unlawful price fixing from 1997 to 2011, with senior managers involved at HQ level. The manufacturers fixed gross (and sometimes net) 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 the emissions technologies. The cartel was a flagrant violation of EU competition rules.  As the trade association in the UK dedicated to the road haulage sector and protecting the sector’s interests, the RHA launched a claim in the Competition Appeal Tribunal in July 2018 against the European truck manufacturers on behalf of all truck operators who either purchased, leased trucks or contract hired during the relevant period. The RHA is putting itself forward as representative in a group claim with a team in place at the RHA, headed up by Richard Smith, who has over 25 years’ experience working within the transport industry, who are focused on taking the claim forward.  The RHA will be seeking to reclaim the difference between what the trucks should have cost in a competitive market as compared with the cartel prices (as well as for any other increases in operators’ costs resulting from the cartel). Based on significant due diligence carried out by the RHA to date, the RHA believes that the amount of compensation per truck will be material and is likely to exceed £6,000 on average (including interest).

Third Party Funding

The RHA has put in place third-party funding and insurance to ensure that the case can be brought both without any cost to the RHA or to truck purchasers signing up to the claim and without any risk of needing to pay the defendants’ costs in the unlikely event the case is unsuccessful. In return for funding the case, the third-party funder will be seeking a percentage cut of any damages awarded. Given the scope of the RHA’s claim, the RHA has been able to negotiate very favourable terms with the funder.

Not for Profit

The RHA have emphasised that it does not intend to profit from acting as representative, maximising the level of compensation that will be returned to those affected by the cartel.   

The Legal team

The RHA has appointed a first-rate legal team to work on this matter. It includes Backhouse Jones, the UK’s leading transport law firm, and specialist competition law barristers from Brick Court Chambers in London and Exchange Chambers in Manchester. The legal team have worked on competition matters for organisations such as the FIA (regulatory body for Formula 1), FIFA, Google, GSK, Samsung, Sky, and UEFA. A leading economic consultancy (Cornerstone Research) has also been retained.

Are you affected?

The RHA are of the opinion that the ESSA may have members who would have purchased or leased trucks during the relevant period and are keen to identify any members who may have been affected by the cartel.  The claim is open to both RHA members and non-members alike and across all haulage sectors. It will cover new and second-hand trucks from 6 tonnes upwards, regardless of whether they were purchased outright, purchased on finance, leased or on contract hire. The claims covers all makes of trucks and not just the major European makes. It also covers second-hand trucks. The relevant period is 1997 to the present day. It should not matter if do not have complete records dating back to 1997.