Merricks v Mastercard Incorporated & Ors [2017] CAT 16 (21 July 2017)

Merricks v Mastercard Incorporated & Ors [2017] CAT 16 (21 July 2017)

The Tribunal held that the claims did not meet the eligibility and suitability requirements for collective proceedings under s.47B Competition Act 1998. The proposed methodology for calculating aggregate damages and distributing them on a per capita basis was not sufficiently robust or practicable to ensure compensation reflected individual loss, given the significant variation in pass-through rates and consumer expenditure. The Applicant failed to demonstrate a credible or plausible means of estimating class-wide loss or distributing damages fairly. Accordingly, the application for a collective proceedings order was refused.

Citation
[2017] CAT 16
Parties
Applicant / Proposed Class Representative: Mr Merricks; Respondent / Proposed Defendants: Mastercard Inc and others
Jurisdiction
United Kingdom
Judgment Date
21 July 2017
Procedural Posture
Application for Collective Proceedings Order (cpo) Under S.47 B Competition Act 1998 / Certification (preliminary Application for Cpo)
Outcome
Application for collective proceedings order refused
Legal Topics
Collective Proceedings, Opt Out Class Actions, Damages for Competition Law Infringement, Pass Through, Aggregate Damages, Certification of Class Actions, Class Representative Authorisation
Competition Law Consumer Protection Civil Procedure Collective Proceedings Opt Out Class Actions Damages for Competition Law Infringement Pass Through Aggregate Damages +2 more

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Parties

Mr Merricks

Applicant / Proposed Class Representative

Mastercard Inc and others

Respondent / Proposed Defendants

Procedural Posture

Application for Collective Proceedings Order (cpo) Under S.47 B Competition Act 1998 / Certification (preliminary Application for Cpo)

Legal Issues

  1. 1 Whether the claims are eligible for inclusion in collective proceedings under s.47B Competition Act 1998
  2. 2 Whether the claims raise common issues and are suitable for collective proceedings
  3. 3 Whether the proposed class representative is suitable and funding arrangements are adequate

Ratio Decidendi

The Tribunal held that the claims did not meet the eligibility and suitability requirements for collective proceedings under s.47B Competition Act 1998. The proposed methodology for calculating aggregate damages and distributing them on a per capita basis was not sufficiently robust or practicable to ensure compensation reflected individual loss, given the significant variation in pass-through rates and consumer expenditure. The Applicant failed to demonstrate a credible or plausible means of estimating class-wide loss or distributing damages fairly. Accordingly, the application for a collective proceedings order was refused.

Court Disposition

Application for collective proceedings order refused

Orders

  • Application for CPO dismissed
  • Limitation issue adjourned by consent for later determination if necessary