Case Study 1

Landmark Consumer Law Class Action

In this case, our Director, Mark Hook, was able to develop legal arguments against 689 claimants – and had 302 Conditional Fee Agreements ruled unenforceable.

The MDH Experience

Our expertise in navigating such intricate cost disputes, especially in the context of class actions and CFAs, was essential to the client in this case. The compelling arguments we put forward, developed from our extensive knowledge and experience of this area of the law and its precedent, brought about a significant shift in the case.

The initial decision was later overturned on appeal, demonstrating just how complex and challenging such class action litigations and CFA disputes can be.

The Background

In a landmark case involving the Turkish Cypriot community in London, a class action was initiated by a large number of claimants against Atlasjet Havacilik Anonim Sirketi (Atlasjet). The claim arose from allegations that Atlasjet had failed to honour airline tickets originally purchased from Cyprus Turkish Airlines.

The court initially entered judgment in default for the claimants, but this judgment was later set aside, leading to Atlasjet being ordered to pay costs. In light of this development, MDH Legal Costs Ltd were engaged to advise Atlasjet regarding the costs claims brought against them by the 689 claimants, all of whom were represented under Conditional Fee Agreements (CFAs).

The Challenges

During the proceedings, there were applications for disclosure of all CFAs, raising significant concerns about their compliance with the Cancellation of Contracts Made in a Consumer’s Home or Place of Work Regulations 2008 (the Regulations). Our legal team presented robust arguments before the Costs Judge, asserting that many CFAs did not actually adhere to these essential consumer protection regulations.

The Outcome

Following a thorough hearing before Costs Judge Rowley, Atlasjet achieved a significant victory, successfully striking out a substantial number of CFAs as non-compliant – and therefore meaning they were not enforceable. The Costs Judge determined that 302 of the CFAs were unenforceable, marking a critical turning point in the case.