The Road Haulage Association has won the very first legal battle to secure compensation for truck operators who have suffered financially because of the unlawful price-fixing by major European truck manufacturers. Here’s a closer look at the case.
CAT Sides with FTA
The Competition Appeal Tribunal (CAT) entirely sided with the RHA that its funding arrangements and its insurance document provisions entitle the RHA to proceed with its claim. The Tribunal confirmed that the truck manufacturers that participated in the cartel from 1997-2011 tried to persuade the Tribunal that the RHA’s agreement for funding didn’t match up to legislation outlawing some funding practices. They said the association didn’t have enough funding in place to bring the claim and that the RHA’s legal insurance was inadequate. The Tribunal rejected all of these arguments and sided with the RHA completely.
Important Milestone for Truck Operators
This process has been rough on truck operators trying to recover compensation that was rightfully owed to them. This ruling is an important milestone in their long, frustrating journey. The RHA is fully committed to seeing the process through to the end, and they suspect a clear victory in the future. This win early in the proceedings has been very encouraging.
A Breakdown of the Cartel
In an October 2019 judgment, it was confirmed that some truck manufacturers had already been found to have participated in the cartel. It was also found that the cartel had a long duration and was involved with many manufacturers. Its scope was extensive, participants accounted for 90% of all the medium and heavy trucks sold in the EEA over 14 years of the cartel.
A Collective Claim
The RHA launched its collective claim in July of 2018. It first must apply to the Competition Appeal Tribunal for a collective proceedings order, otherwise known as a CPO. This will entitle the RHA to bring the collective claim on behalf of the UK’s entire road haulage industry.
Stay tuned for more on this complicated, ongoing issue.