US and European offices deliver integrated advice
Lovells has announced the formation of a focused group of the firm's dispute resolution lawyers with experience of advising on class action cases often involving multiple litigants in multiple jurisdictions. The Unit will act as a contact point for clients on class action issues and keep a watching brief on legislative and case developments. It will offer clients the tactical benefit of access to an integrated international network able to provide coordinated advice across borders.
Lovells has already undertaken a number of initiatives in this area including a regular class actions client bulletin now in its third year, knowledge sharing on international developments and a roadshow of seminars involving partners from the firm's US and European offices.
In addition to a core team from Lovells' main European offices, the Unit will include partners from the firm's US office with direct, and up to date, hands-on experience of a market where the concept of class actions is firmly embedded. It will also involve partners with relevant practice experience in areas where group action is most likely, including product liability, shareholder disputes and competition litigation.
Patrick Sherrington, global head of Lovells' dispute resolution practice said:
"Although group litigation is in its infancy in Europe there is momentum behind movement towards a more US-style system. Lovells' established US presence, European network, and vast experience in cases involving multiple litigants across jurisdictions make us uniquely placed to advise clients defending group litigation".
Neil Mirchandani, London dispute resolution partner and coordinator of the Unit, added:
"The formation of the Class Actions Unit comes at a time when a number of continental European jurisdictions have implemented or are considering legislation to introduce new group litigation procedures. The Class Actions Unit offers a coordinated cross-jurisdiction and practice area team able to provide experienced strategic and technical legal advice wherever and whenever an issue arises".
Other developments include the announcement by the EU Consumer Affairs Commissioner in March 2007 of proposals to introduce into the EU new rules on collective redress by consumers which would enable representative bodies to aggregate claims on a pan-European basis. More recently the Royal Dutch Shell case brought in the Netherlands involved the use of a new collective settlement procedure to settle claims arising out of the company's restatement of its oil reserves.
In addition, recent developments in the UK legal system, while unlikely to lead to full scale US-style class actions in the short term, may result in increased group litigation activity. These include:
- OFT proposals on changes to competition law claims which, if adopted, would allow claims by groups of consumers and businesses. These claims could have some of the features of US class actions. The OFT is holding a hearing on its proposals today, 24 September.
- Developments on the funding side, such as use of third party funding and contingency fees.
- The arrival of US claimant-side specialists in Europe.
- The Companies Act coming into force in October introduces a statutory right for shareholders to sue directors by way of derivative action and may increase the likelihood of group actions brought by shareholders against company boards.
1. Lovells' class actions expertise
Lovells has substantial experience of acting in class actions, group actions and multi-claimant and defendant litigation across a range of areas including: banking, capital markets and securities law, financial services and regulatory matters, competition/ antitrust law, international fraud and insolvency, pension and trust fund issues, product liability, employment discrimination and alien tort claims. Members of Lovells' Class Actions Unit have built up a deep understanding of issues including: case management of complex, multi-jurisdictional cases on behalf of corporate defendants; disclosure/discovery of documents on a global scale; funding arrangements and costs recovery; class action procedure; issues associated with the extraterritorial reach of US securities class actions and forum shopping.
2. List of jurisdictions covered by the Unit
Lovells' dispute resolution practice has already advised on class and group litigation issues in eight jurisdictions.
The Class Actions Unit includes representatives from France, Germany, Italy, The Netherlands, Spain, the UK and the USA.
The Unit will be coordinated by London based dispute resolution partner Neil Mirchandani neil.mirchandani@lovells.com / +44 (0)207 296 2919.3.
3. Lovells' Class Actions publications
Class Actions: A pan-European perspective
Class Actions Bulletin
4. About Lovells
With over three thousand people operating from 26 offices in Asia, Europe and the United States, Lovells is one of the world's leading international law firms. We advise many of the world's largest corporations, financial institutions and governmental organisations. We regularly act on complex, multi-jurisdictional transactions as well as some of the most high-profile commercial disputes.Lovells (the "firm") is an international legal practice comprising Lovells LLP and its affiliated businesses. Lovells LLP is a limited liability partnership registered in England and Wales with registered number OC323639. Registered office and principal place of business: Atlantic House, Holborn Viaduct, London EC1A 2FG.
The word "partner" is used to refer to a member of Lovells LLP, or an employee or consultant with equivalent standing and qualifications, and to a partner, member, employee or consultant in any of its affiliated businesses who has equivalent standing.