U K Supreme Court enables $18 5 billion class action against Mastercard thehindu.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from thehindu.com Daily Mail and Mail on Sunday newspapers.
A closely divided UK Supreme Court ruled that the specialized court established to hear class actions improperly dismissed one of the first cases before it, a proposed $19 billion lawsuit against Mastercard, although whether the massive action proceeds to trial is subject to further litigation.
In an unusual 3:2 decision where the deciding vote was cast by a deceased justice, the UK’s highest court agreed with an appeals court that the Competition Appeal Tribunal incorrectly determined the Mastercard case wasn’t suitable for collective action treatment. The lawsuit seeks damages on behalf of every adult consumer in the UK between 1992 and 2007, some 42 million people, over alleged excessive interchange fees banks charge merchants.
By Jemma Slingo2020-12-11T11:52:00+00:00
A group action brought on behalf of 46 million credit and debit card holders has received the green light from the Supreme Court to proceed to the next stage of litigation.
In a widely awaited judgment, the Supreme Court in
Mastercard & Ors v Walter Hugh Merricks dismissed Mastercard’s appeal, finding that a 2017 Competition Appeal Tribunal judgment was undermined by errors of law.
The claim, worth an estimated £14bn, accuses Mastercard of subjecting UK customers to higher prices through so-called interchange fees levied between 1992 and 2008. It was brought by former financial services ombudsman Walter Merricks CBE. Merricks first tried to bring collective action in 2017. However, the CAT refused the application for a collective proceedings order on the grounds that the claims were not suitable for an aggregate award of damages and Merricks’ proposed distribution of any award did not satisfy the compensatory principle in com
Synopsis
The judgment dismisses an appeal by Mastercard, sets the scene for Britain s first mass consumer claim brought under a new legal regime and offers guidance for a string of other class actions that have been stalled pending this ruling.
Reuters
Mastercard said it fundamentally disagreed with a claim that it said was being driven by hit and hope U.S. lawyers.
A 14 billion pound ($18.5 billion) class action against Mastercard for allegedly overcharging more than 46 million people in Britain over a 15-year period was on Friday given the green light by the
UK
Supreme Court.
The judgment dismisses an appeal by Mastercard, sets the scene for Britain s first mass consumer claim brought under a new legal regime and offers guidance for a string of other class actions that have been stalled pending this ruling.
Mastercard to face $18 5-billion class action in U K after landmark court ruling theglobeandmail.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from theglobeandmail.com Daily Mail and Mail on Sunday newspapers.