Collective Action between Regulatory Goals and Individual Claimants' Rights – Collective Redress Mechanisms in EU Member States as Points of Departure for Procedural Innovation

Goethe-University Frankfurt, Faculty of Law Research Paper No. 5/2107

30 Pages Posted: 22 Jun 2017

See all articles by Brigitte Haar

Brigitte Haar

Goethe University Frankfurt - Research Center SAFE; Columbia University - Law School

Date Written: June 21, 2017

Abstract

The EU Collective Redress Recommendation has invited Member States to introduce collective redress mechanisms by 26 July 2015. The well-known reservations claim potentially abusive litigation and potential settlement of not well-founded claims resulting from controversial funding of cases by means of contingency fees and from ‘opt-out’ class action procedures. The paper posits that there may also be some fear that the European Commission may try to pursue the enforcement of its regulatory agenda in this way at the expense of individual claimants’ interests. Therefore a comparative analysis is carried out to see to what extent concerns about individual rights as opposed to regulatory goals are reflected in the different newly revised systems in place across Europe. As an iterim result the Dutch settlement procedure for mass damage claims, the English Group Litigation Order and the German test case procedure turn out to be relatively well-suited to deal with mass damage claims. At the same time, none of them can quite reach an optimal balance between individual rights and regulatory goals and therefore each of them is subject to criticism. That is why the further question is raised in how far these procedures could complement each other, thus contributing to the enforcement of individual rights without overregulating markets in Europe.

Keywords: Collective Action, Investor Protection, Test Cases, Settlement Procedures, Collective Redress Recommendation

JEL Classification: K10, K20, K23, K40, K41

Suggested Citation

Haar, Brigitte, Collective Action between Regulatory Goals and Individual Claimants' Rights – Collective Redress Mechanisms in EU Member States as Points of Departure for Procedural Innovation (June 21, 2017). Goethe-University Frankfurt, Faculty of Law Research Paper No. 5/2107. Available at SSRN: https://ssrn.com/abstract=2990634 or http://dx.doi.org/10.2139/ssrn.2990634

Brigitte Haar (Contact Author)

Goethe University Frankfurt - Research Center SAFE ( email )

(http://www.safe-frankfurt.de)
Theodor-W.-Adorno-Platz 3
Frankfurt am Main, 60323
Germany
49-69-79833764 (Phone)
49-69-79833904 (Fax)

HOME PAGE: http://www.hof.uni-frankfurt.de/haar/

Columbia University - Law School ( email )

435 West 116th Street
New York, NY 10025
United States

HOME PAGE: http://www.law.columbia.edu/fac/Brigitte_Haar

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