Claimant solicitors have welcomed a High Court decision to allow motor finance claims to proceed through one single claim form.
In Angel & Ors v Black Horse Ltd Mr Justice Ritchie ruled that the proceedings could and should be conveniently dealt with under eight omnibus claim forms, overruling a judge’s decision to handle them separately.
The eight forms were issued by different firms covering more than 5,800 claimants bringing claims against right motor finance companies: in each, the claimants assert that each defendants arranged in advance for a broker to be paid a commission which was undisclosed and unfair on the motorists. His Honour Judge Worster ruled in September 2023 that each claimant must issue a separate claim.
Mr Justice Ritchie said the omnibus claim forms were broad in jurisdiction and gave managing judges wide flexibility of powers. He said the judge rightly followed the guidance in Abbott v Ministry of Defence in relation to determining whether it was suitable for multiple claimants to bring claims on a single form.
But the Court of Appeal in Morris & Ors v Williams & Co Solicitors had since given clear guidance that the test applied in Abbott was not correct. Mr Justice Ritchie ruled that the order in Angel be overturned and the case remitted to the judge for case management under the omnibus claim form.
Ritchie noted that disclosure would be more focused with the omnibus route and far better timed, with the overriding objective favouring this course. He dismissed any concerns that court fees would be lost to the government by removing separate claims and said fee income was not a matter for the judiciary.
He added: ‘The omnibus route would favour access to justice for those claimants with small claims track and fast track claims. There is an imbalance of financial power between individual claimants and the defendants.’
The two leading respondents in the case had argued the court had to reach a high threshold to overturn case management decisions. They pointed to the judge’s finding that the claimants’ solicitors had not properly thought through what was being proposed and were ‘playing catch up’.
Following the successful appeal, Manchester-based claimant Barings Law said the decision could help thousands of people and may steer finance companies towards early settlement.
‘This is a huge moment for the thousands of people who have been misled and overcharged,’ said Craig Cooper, managing director of Barings. ‘The High Court’s ruling means that instead of facing costly and time-consuming individual cases, claimants can now pursue justice as part of omnibus, making access to justice fairer and more efficient for everyone involved.’
