Settlement and payment

As in litigation more generally, throughout multi-party proceedings the court will encourage the parties to seek to settle their dispute and the significant costs that may be incurred in group actions provide greater impetus on both sides.

However, managing the interests and wishes of a diverse group of claimants can sometimes be challenging when dealing with settlement negotiations, particularly in circumstances where clear thought has not been given at the outset to appropriate decision-making procedures. Where the claim is supported by litigation funding, it is also likely to be necessary to take account of funders' views, although under English law funders are not generally permitted to disproportionately control the litigation.

In some multi-party proceedings, including claims under GLOs, it may be possible for some of the claims to settle while others continue to run, although claimants should be aware that if stronger claims are settled, this may have a detrimental effect on the remaining proceedings. Meanwhile, in order to bring the proceedings to a close, a defendant is likely to prefer a universal settlement.

In the context of a GLO or a representative action under CPR 19.8 it is not necessary for the court to approve terms of settlement unless the claimants include children or protected parties, although approval is required for a representative action under CPR 19.9. In the CAT, settlements of collective actions require approval by the Competition Appeal Tribunal.

The mechanics regarding the payment of settlement sums will also be a question of agreement between the parties. In practice, sums are often paid to the claimants' solicitors, who will then be responsible for distribution amongst the claimant group.