Wronged holiday park victims are being offered multiple avenues to seek justice. Not all options are suitable for all claimants.
ECC breaks down the differences:
What are the main ways to claim?
Let’s assume you have been mistreated by a holiday park operation. Now you want to seek redress and potentially claim some compensation.
The two main choices you have to make are:
- Whether to claim as part of a group action vs a making a tailored, individual claim
- Whether you are better off going with a firm offering No Win No Fee (NWNF) or paying for your own legal actions
Group action vs individual claim. The basics
Group actions involve multiple plaintiffs with broadly similar issues joining forces to file one lawsuit. Rather than each person filing individually.
European Consumer Claims (ECC) director and consumer expert Greg Wilson explains: “Group actions are ideal for some people. There is strength in numbers and costs can be shared to some extent.
“The downsides can be that these type of actions can be a ‘blunt instrument’. As part of a group action, some details of your specific case may not be taken into account.”
Individual claims are the opposite. They give you the ability to surgically address exactly what has happened to you. The judge only needs to consider the factors directly relating to your specific claim.
Group action vs individual claim: Pressure to settle?
The lawyers negotiating on the group’s behalf may reach what they consider to be an acceptable settlement proposal. But will this offer be the best deal for you as an individual?
If not it could be difficult to persuade the legal team plus hundreds/thousands of other plaintiffs to reject the offer and continue negotiating.
“If justice in any form whatsoever is going to make you happy, and you are comfortable accepting whichever deal the lawyer advises, then a group action may be the best option for you.
“If your case is strong and you are suing for a lot of money, then paying a fixed cost for your own, tailored legal actions could be a more attractive avenue.”
Group actions vs individual claims. Time
Group actions can take a very long time compared to individually managed cases. Some group actions have taken many years without reaching a conclusion.
Due to the size of the group and size of the claim there are many more factors to consider when mounting a group action. Including funding and insurance, all of which can delay the outcome.
To some claimants, the extended timeframe can be a major hindrance.
For people in no rush, even a multiple-year wait can be worth it when the case yields a positive outcome. But if for any reason the action fails to produce the required result then it can feel like a lot of time wasted. Especially considering the reduced level of input that a group claim plaintiff has, as they are only one voice among sometimes tens of thousands.
“The complexities involved in group actions are what can result in them taking longer to resolve,” advises Greg Wilson. “Everyone’s particulars of claim are different, and the case has a lot more information to be considered. If your aim is a swifter outcome or compensation tailored to your individual needs, a group action may not be your best option.”
Group action vs individual claim. Stand or fall together
Group actions (like all civil actions) can be thrown out on points of law, or even points of merit. This can be highly inconvenient if you have spent a long time waiting, plus paid hundreds of pounds in ATE insurance.
While group actions are a great option for many, it has to be born in mind that all metaphorical eggs are in one basket. You all win together, or you all don’t.
“With an individual claim,” notes Wilson, “there is more direct communication between the claimant and the legal team. The case can tailored to reflect this plaintiff’s losses the specific infractions suffered. In turn this should increase the chances of success.”
Group action vs individual claims. Compensation split
Greg explains: “Assuming the case is won, the awarded money left over (after costs) can often be shared evenly among the plaintiffs. Great for someone who would only have won a small amount, but those with larger claims can end up with less than they would have won individually.
By averaging out the claims, almost nobody gets what they ‘deserve’. 50% of people will get more than they should, at the expense of the other 50%.”
“With an individual claim you are more likely to be awarded what you, personally merit.
“These factors would again indicate that those claimants with either legally weaker claims, or claims that would not be expected to generate a larger than average award benefit more (in this sense) from being part of a group action.
“People with stronger cases, or those whose claims are for larger amounts should consider making a separate, individual claim.”
No Win No Fee vs paying upfront for legal services
This one seems like a no brainer, right? If a law firm will do the legal work involved in your claim and only take a payment when the claim is successful and they have obtained money for you, then provided you are insured you are not exposed to any risk at all.
You only pay costs from the money the lawyers win for you.
This has to show that the law firm has confidence in the case. Why else would they take all the risk and do all the work unless they were certain of a result? What possible downsides could there be?
“No Win no fee is a great option for people who might be constrained financially,” says Greg. “But remember that in return for assuming the risk and costs, the lawyers obviously want something in return. Usually this is a far greater percentage of the winnings. A typical NWNF lawyer’s percentage can be up to 50%. Sometimes more.
“Legal costs in some cases may also be taken from the client’s share before any money is paid out. Meaning that, while the client can still enjoy the satisfaction of victory, the actual money received at the end of it all can be minimal.
“This is as it should be. The NWNF lawyer is assuming all of the risk. It is only fair that they should be compensated more for doing so.”
No Win No Fee cases do not come completely without upfront costs. “NWNF clients are generally warned that they should buy ATE insurance, which in a complex case can be hundreds of, or even upwards of a thousand pounds.
“Without the insurance, the plaintiff risks being saddled with very significant legal costs if the judge awards against them.”
What is the best option for you?
“Most of us understand that in this life, you get what you pay for,” Greg points out. “If someone else is paying the costs upfront for you and assuming the risk, you are going to end up paying a premium for that. If your case is strong, you may prefer to pay your own costs and keep a much larger percentage of the money awarded. It could make tens of thousands of pounds worth of difference to you.
“Similarly, If your case is strong and worth a lot of money, then you may want to disassociate yourself from weaker cases that are not worth as much. In a group action you could be helping the weaker cases, but those cases would be negatively affecting your personal potential outcome.
“Therefore, if your case is not particularly strong, then you could benefit by attaching yourself to a group action.
“Either way, it is best to get all of the information before committing to a course of action. You need to do what is best for you.”
For a free, no-obligation, confidential assessment of your options contact our ECC holiday park experts. We will make a recommendation based on your specific situation.
Always keep in mind that here is no one proven route to successfully claiming against holiday parks.
If we think your case is more suitable for a group action, or you would be better off with a NWNF arrangement, then we will tell you that.
ECC is only interested in taking the strongest cases forward.
