Truck makers face £3.9bn price-fixing claim from UK hauliers
The Road Haulage Association (RHA) is seeking compensation after a cartel of five truck makers – Iveco, DAF, Volvo/Renault, Daimler and MAN – were found guilty of colluding to raise prices by the European Commission. They were fined a combined €2.93bn, however, they now face a demand for £3.9bn from UK lorry drivers. The RHA has called on hauliers to join its legal action against those truck makers that were part of a pricing cartel. It claimed about 650,000 new trucks were sold between 1997 and 2011 with an average inflated price of £6,000.
Insurance company Therium Capital Management is funding the action which is being taken by the Road Haulage Association.

The Road Haulage Association is inviting UK haulage and logistics firms (including non-RHA members) to join a legal action for compensation against truck manufacturers found guilty of illegal price fixing. The group are being represented by Backhouse Jones, Exchange Chambers and Brick Court Chambers and the legal action is being funded by litigation funder Therium Capital Management Limited, which will cover the costs, including significant insurance cover. RHA chief executive Richard Burnett said: 'To ensure that as many affected hauliers are able to join the claim, we have secured funding from Therium Capital Management Limited and the largest tranche of After The Event insurance that’s ever been underwritten so there’s no cost to joining the claim, or any other risks if the claim is unsuccessful.'

Price-fixing

In July last year the European Commission fined MAN, Volvo Group (which includes Volvo Trucks and Renault Truck), Mercedes-Benz parent company Daimler, Iveco and DAF close to €3 billion (£2.6 billion) for price fixing and other cartel activities between 1997 and 2011.The European Commission is continuing its investigation against Scania but the RHA currently plans to include Scania trucks in the case from the outset. The RHA claim will be brought before the Competition Appeal Tribunal in London. If successful, haulage and logistics companies will get money back for vehicles sold or leased to them at inflated prices because of the cartel, if they sign up to the claim.

Fully funded

This is the first fully funded group claim against the truck manufacturers on behalf of affected hauliers. All UK truck owners can join the group legal action at www.truckcartellegalaction.com. Compensation could be in the region of £6,000 per truck on average across different truck siz, the RHA says. Companies that have purchased or leased new or second-hand trucks direct from manufacturers (including Scania) or dealers from 1997 onwards are eligible to join the claim. During the period the cartel operated, the association says it believes around 650,000 new trucks were sold.

Fair deal

RHA chief executive Richard Burnett said: 'UK truck owners affected by the truck cartel have potentially paid too much for their lorries over a 14 year period and we’re determined to get a fair deal for them. This is a chance to get their compensation with no risk to their business or finances. As the representative body with sole responsibility for UK road freight operators, we are duty-bound to act on behalf of our members’ wishes.They have made it clear that they feel angry about the truck pricing cartel and want us to represent them.'

Industry representative

On behalf of the legal team, David Went of Exchange Chambers said: 'We are taking this case to the Competition Appeal Tribunal as it is the specialist court in the UK that deals with these types of claims and is an effective way to seek redress for operators. The initial stage involves asking the Tribunal to authorise the RHA to act as industry representative and to set out the basis on which operators can opt into the claim. The first hearing is expected to be later this year.'