GROUP CLAIM OR INDIVIDUAL

  The Benefits of Running an Individual Claim Over a Group Action Claim in the UK

When seeking legal redress in the UK, claimants are often faced with the decision of whether to pursue an individual claim or join a group action claim (also known as a class action).

Both options offer distinct advantages and challenges, depending on the nature of the dispute, the claimant’s priorities, and the resources available.

We explore the pros and cons of both individual claims and group actions, highlighting why running an individual claim may be preferable in some circumstances.

 

Individual Claims: Pros and Cons

PROS OF AN INDIVIDUAL CLAIM

1. Control Over the Case

One of the main benefits of pursuing an individual claim is the level of control it provides to the claimant. In an individual case, the claimant can dictate the strategy, the choice of legal representation, and the pace of proceedings. They can make decisions based on their unique circumstances, such as settlement offers or whether to proceed to trial.

2. Tailored Approach

Every legal dispute is unique, and an individual claim allows for a more tailored approach to addressing the claimant’s specific situation. The legal arguments, evidence, and remedies can be designed to suit the individual’s needs, making it a more flexible option compared to the one-size-fits-all nature of group actions.

3. Potential for Larger Compensation

In individual claims, the claimant may well receive a larger share of any damages awarded as the claimed amount would likely be affordable for the defendant to pay either by way of settlement or judgment. Due to the significant size of the total amount being claimed by a group action, it is often unlikely the defendant would be in a financial position to manage the payout in full.

4. Personalised Legal Representation

When running an individual claim, the claimant works directly with their chosen solicitor, ensuring that the legal team can focus entirely on their case. This means the solicitor can focus on the specific legal nuances of the case and may be more committed to the claimant’s success. Additionally, in high-stakes cases, individual solicitors may dedicate more time and resources to the case.

5. Fewer Risks of Compromise

Group action claims may require claimants to accept a settlement that might not fully reflect the extent of their individual harm, as the settlement must be approved by the group. An individual claim offers more freedom to accept or reject settlement offers, ensuring that the claimant’s interests are paramount.

Cons of an Individual Claim

1. Independent Financing

Running an individual claim typically involves taking on sole responsibility for funding the cost of the case, particularly if it goes to trial. If there is no fixed-cost agreement in place or cap on legal fees, they may quickly accumulate, especially if the defendant is well-resourced and able to mount a prolonged defence.

Although some claims can be funded via “no win, no fee” agreements, this usually results in a smaller compensation award as in exchange for charging no upfront fees the legal team would normally require a larger percentage of the success fee in exchange for the increased risk of running the case without upfront funding.

Likewise, “no win, no fee” group claims may operate similarly with significant success fees being charged by the legal team and funders.

2. Stronger case viability required

Proving mis-selling in an individual claim requires a stronger wall of evidence than if in a group claim. This is because it is your word against the other party’s word and your statements need to be backed by evidence to prove that things happened the way you said they did. In a group claim it is much easier to prove a statement of mis-selling and if all people in the group are saying the same things, then this becomes a case of systematic misrepresentation. On the other hand, if you have a strong case with significant evidence being part of a group claim with other claimants who have weaker cases may dilute the overall strength of the argument. 

3. Higher commitment requirement

If you are part of a group claim you can register your claim and somewhat let the others lead the case with little need to commit your time and focus to the specifics of the case (as other group members wanting to do this can lead the charge). With an individual claim you will be required to work with the legal team on the specifics of your case and be in a position to provide evidence.

 

Group Action Claims: Pros and Cons

Pros of a Group Action Claim

1. Lower Costs

One of the most attractive features of group action claims is the potential for reduced costs. Since the group shares legal expenses, individual claimants often pay lower legal fees compared to what they would pay for an individual case. Group actions can also benefit from collective funding arrangements, such as third-party litigation funding, which may help mitigate costs for individual participants.

However, it is important to remember that funders also require their investment to be returned and may take a higher percentage of your compensation than if the claim has been covered by upfront legal fees. In some cases, the percentage that funders recover can be more than the cost of the upfront legal fees would have been.

2. Strength in Numbers

Group actions can be an effective way for individuals to challenge powerful defendants (e.g., large corporations or government bodies) who might otherwise be able to afford a prolonged and costly legal battle. The sheer number of claimants in a group action can provide significant leverage, as it can demonstrate the widespread impact of the defendant’s wrongdoing and prove systematic misrepresentation.

3. Efficiency in Collective Litigation

By pooling resources, group actions can often be administrated more efficiently than individual claims. The legal team can focus on representing all claimants in a unified case, and the process may be streamlined compared to running multiple individual claims.

4. Reduced Legal Risk

The risk of not recovering costs is spread out in group actions, as claimants are not individually responsible for the entire legal fee burden. Additionally, claimants who opt for group actions are often less exposed to the risk of losing a case, particularly when the group action involves a significant body of evidence or a clear-cut legal issue.

 

Cons of a Group Action Claim

1. Less Control

In a group action, the individual claimant has less control over the proceedings. Decisions about strategy, settlements, and case management are made collectively, which means claimants may have to accept compromises that do not fully reflect their individual needs. For example, a claimant might have a unique circumstance that gets overlooked in the broader group strategy.

2. Divided Compensation

While group actions can result in compensation for a large number of claimants, the total damages awarded are typically divided among all participants. This means that, even if the claim is successful, the individual claimant may receive a much smaller portion of the compensation than they would have if they had pursued an individual claim.

3. Potential for Delays

While group actions can be more efficient in some respects, they can also experience significant delays due to the need to coordinate with many claimants, legal representatives, and witnesses. In cases where the issues involved are highly complex or involve a large number of parties, the legal process may take much longer. Furthermore, a defendant will have more incentive to settle or conclude an individual claim for a manageable claim amount and more incentive to robustly defend or delay a group claim against them for a significant claim amount that may put them out of business. 

4. Settlement Pressure

In group actions, the settlement must be agreed upon by the entire group. This means that the majority view will dictate whether a settlement is reached, and individuals may feel pressured to accept a settlement that may not reflect their particular circumstances or the full extent of their losses.

Both individual claims and group action claims offer distinct advantages and disadvantages, and the best option depends on the claimant’s specific situation.

Individual claims offer more control, a personalized approach, and the potential for higher compensation but possibly come with higher costs and risks.

Group actions, on the other hand, provide the benefits of reduced costs, collective strength, and efficiency, but at the cost of less control and potentially smaller compensation.

Ultimately, the choice between an individual claim and a group action claim depends on factors such as the severity of the individual’s case, the resources available, and the desire for control over the proceedings.

Claimants should consult with an experienced advisor or solicitor to assess their situation and determine the most suitable path for achieving the best possible outcome.

If you feel that you have been mis-sold a UK Holiday Park ownership and want to know what your options are, get in touch with Holiday Park Advice Centre for a free, no-obligation consultation of your holiday ownership. You can find out if you could be eligible to claim and your options to carry a claim forward.

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