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Speed briefing: Emerald v BA - Court of Appeal rejects attempt to bring a cartel class action

Overview

The Court of Appeal handed down a long-awaited judgment on 18 November 2010 in the case of Emerald Supplies Ltd v British Airways rejecting an attempt by US class action firm Hausfeld to use a procedural novelty in English law to establish a form of opt-out class action in England.

Hausfeld's clients were two flower importers who used air freight services provided by British Airways and claimed to have suffered loss as a result of BA's involvement in a global cartel that fixed prices for air cargo. The claim was issued preemptively when the European Commission was still considering the question of infringement but a decision finding an infringement by BA and others was issued by the Commission last month.

Hausfeld indicated that it also acted for 178 further potential claimants who could be added as named claimants - the novelty in this case, however, was that the named claimants purported to sue as representatives of all who purchased air freight services from BA or other airlines involved in the cartel and who thereby suffered loss as a result of the cartel. This speed-briefing from Baker & McKenzie has the details.

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