Collective Redress Proposal Lacks Safeguards, Could Create “Chaos”

11th Dec 2018

U.S. Chamber Institute for Legal Reform Senior Vice President for International Initiatives Scevole de Cazotte told Corporate Counsel that “there’s room for serious improvements,” in the collective redress bill that the JURI Committee recently advanced.

De Cazotte pointed to the proposal’s lack of a certification rule, the potential for unregulated litigation funding, loose rules for the “qualified entities” that are allowed to bring lawsuits, and the possibility for multiple and overlapping claims that make finality harder to achieve as the key areas for improvement in the bill. The way to improve this proposal would be to add safeguards to protect against abusive litigation. Without strong safeguards, de Cazotte said the European Union “may ultimately see chaos”. Examples of potential safeguards can be found here.

The European Parliament Legal Affairs Committee (JURI) advanced the proposal last week. It will now go before the full Parliament and European Council.