End of the line: second ever collective settlement approval order issued in Rail Fares proceedings

13/05/24

The Competition Appeal Tribunal (“CAT”) has approved the second ever collective settlement approval order in the Rail Fares opt-out proceedings (Gutmann v First MTR & ors).

The proposed settlement was agreed between the class representative, Justin Gutmann, and Stagecoach South Western Trains Ltd (“SSWT”), one of three original defendant groups to a claim concerning an alleged abuse of dominance in relation to the sale of boundary fares.  The trial of the abuse allegations, which will continue in relation to the remaining non-settling parties, is listed to be heard in June and July 2024.

The judgment gives important guidance for future cases on the information that parties to a proposed settlement in opt-out collective proceedings should expect to provide to the CAT.  It also sheds light on the CAT’s expectations relating to the arrangements for distribution of settlement sums.

The CAT’s judgment ([2024] CAT 32) is here.

The first collective settlement approval order was granted in the McLaren (Maritime Car Carriers) collective proceedings: see news item here.