Addleshaw Goddard

UK 200 2014 position: 22


A perfect storm for exemplary damages

As the first case in which the Competition Appeal Tribunal (CAT) has awarded ‘follow-on’ damages under section 47A of the Competition Act 1998, it is unsurprising that the case of 2 Travel Group plc (in Liquidation) v Cardiff City Transport Services Ltd has been widely reported.

Most commentators have identified two main themes; first, that a precedent of awarding damages in a follow-on action has been set, which should encourage future follow-on claims (especially given the government’s current proposals to facilitate further private actions); and secondly, that exemplary damages can be awarded for breaches of competition law. The case has been analysed to gain  an insight as to how future follow-on actions will fare, and also to consider if awards of exemplary damages will become a feature of such actions.

Addleshaw Goddard acted for the claimant and while, of course, the case was decided on its facts, the claim was perhaps more nuanced than has been reported and gave rise to numerous broader issues of general importance to such follow-on claims. This article seeks to highlight those issues…

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