The High Court has struck out a claim for very substantial alleged damages brought in the names of approximately 65,000 Chinese claimants against British Airways, on the basis that the solicitors bringing that claim acted without authority.
This was one of a number of claims arising from an alleged cartel between airlines concerning certain surcharges on air freight. Hausfeld & Co LLP filed the claim, and initially said that they were instructed by the Chinese Chamber of International Commerce on behalf of each of the individual claimants. This argument was subsequently withdrawn, and instead it was contended that a relatively small number of the claimants had subsequently ratified the proceedings. Hausfeld also requested additional time to gather further ratifications.
Rose J found that the question of whether unauthorised proceedings issued in England have been ratified is governed by English law following the Court of Appeal decision in Presentaciones Musicales v Secunda [1994] Ch 271, and that these proceedings had not been ratified by any of the purported claimants. She decided that the claim should be struck out, and that no further time should be given for ratifications. Rose J also found that the issuing of the claim constituted an abuse of process, and that it should also be struck out on this alternative ground.
Kenneth MacLean QC and Gideon Cohen appeared for BA. They are instructed by Slaughter and May.
The full text of the High Court’s judgment can be found here.