The multimillion-pound lawsuit against an alleged salmon company price-fixing “cartel” has received a setback.
The Competition Appeal Tribunal unanimously ruled against Waterside Class Limited’s £382m claim on behalf of an estimated 35 to 44 million British consumers, concluding that the eligibility condition was not satisfied.
The claim accuses Mowi, Mowi Holding, Lerøy Seafood Group, Scottish Sea Farms, Salmar and Grieg Seafood of acting as a “cartel”; allegedly colluding to artificially inflate Atlantic salmon prices between 2013 and 2019.
However, the tribunal’s central concern revolved around the high legal and funding costs of the claim versus the payouts from which consumers would benefit.
“At the heart of our concerns are the proposed legal costs of these proceedings as weighed against the anticipated sums which will be returned to the class,” the judgment said.
It continued: “Experience suggests that class representatives, who may not consider themselves personally at risk of an adverse costs order, may pay insufficient attention to such matters.”
Despite the ruling, the tribunal did not strike out the claim, which has been pursued alongside two others brought by Asda and Tesco. It argued there was scope for a “much smaller” costs budget with a “more creative mechanism for returning damages to the class”.
“Subject to further consideration, we see no reason why a scheme could not be devised, perhaps with the co-operation of retail outlets, which has the potential to return close to 100% of damages to members of the class,” the judgment said.
Waterside spokesperson Anne Heal said she was “disappointed” with the ruling, but argued “the claim has a sound basis and that we have been invited to return with a revised approach”.
Heal continued: “The judgment makes clear that this is the type of claim that can properly be brought on behalf of consumers, and that there should be a route for people to recover losses where they have paid unfairly high prices for salmon.
“This claim was brought to secure compensation for millions of consumers who may otherwise have no realistic way to recover those losses,” she added. “It is supported by detailed economic analysis and sits alongside wider scrutiny of the salmon industry, including action by the European Commission, investigations by the United States Department of Justice, and similar claims brought by major UK retailers.
“We will now consider the tribunal’s guidance carefully, particularly on distribution and costs, always with a view to securing the best possible outcome for consumers.”
A directions hearing has been proposed for the first date after 13 May. The tribunal said it expected to be informed whether Waterside intended to make a further application for a collective proceedings order and the scope of the application.
Mowi, Lerøy Seafood Group, Scottish Sea Farms, Salmar and Grieg Seafood were approached for comment.
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