Le Patourel v BT [2024] CAT 76

Le Patourel v BT was a watershed moment for collective proceedings in the Competition Appeal Tribunal, being the first opt-out collective action to reach a full trial and substantive judgment. Justin Le Patourel, as class representative, brought proceedings on behalf of approximately 2.3 million BT landline-only customers who were alleged to have been overcharged for standalone fixed voice telephone services. The claim alleged that BT had abused its dominant position by charging excessive prices to customers who did not purchase bundled broadband and call packages. The proceedings were supported by third-party litigation funding throughout. Following a lengthy trial, the CAT delivered its judgment on 19 December 2024, dismissing the claim on its merits. The Tribunal found that the class representative had not established the alleged abuse of dominance to the required standard. The economic evidence on excessive pricing was found to be insufficient to establish that BT’s prices were significantly and persistently above the competitive level.

The dismissal had significant financial consequences. BT was awarded approximately £14 million in adverse costs against the class representative, a liability that would fall on the litigation funder under the terms of the funding arrangement. The case demonstrated several important points for the litigation funding market. It showed that the CAT will apply rigorous scrutiny to competition claims at trial, notwithstanding that they have passed the certification threshold. It illustrated the substantial financial exposure that funders face when backing claims that proceed to trial and lose. And it raised questions about the adequacy of the certification process as a filter for meritorious claims. The decision was closely watched by the funding industry as the first real test of the downside risk of backing collective proceedings through to trial.