Omnibus Action

“What is an “omnibus action” and what does it have to do with the motor industry?”

You might have seen some buzz around discretionary commissions and an “omnibus action” in the past couple of weeks.  That’s because, on 4 March, the High Court, in Stuart Angel and Others v Black Horse Limited, provided a crucial precedent, endorsing omnibus forms in motor finance commission claims and overturning an earlier requirement for claimants to file individually.

So, what’s an “omnibus action?” 

The concept sounds properly obscure, but it’s quickly becoming one of the most significant legal developments in recent years. Omnibus actions are collective claims enabling thousands of claimants who share similar grievances to pursue their cases together. Until recently, many courts hesitated to allow groupings this broad.  Indeed, the High Court in Stuart reserved a lower court ruling that would have forced more than 5,000 claimants to file commission cases individually. 

Importantly, the ripple effects of omnibus actions stretch far beyond commission claims. The procedural shift to more collective redress opens the door wider to mass consumer rights litigation generally.  It may soon be viable to efficiently handle large-scale disputes that were previously impractical. Omnibus actions reduce costs, streamline judicial management, and facilitate settlements by resolving common legal issues in lead cases.

In Conclusion

The motor industry, frequently a focus of consumer rights claims—from defective products to misrepresentations—can expect increased group litigation, taking the place of what would have traditionally been one-off small claims. The ripple effects could reshape how dealerships and finance companies manage legal risk and customer complaints, urging proactive compliance measures and careful evaluation of business practices that could attract large-scale scrutiny.

We will continue to monitor and report on the subject, and remember, as a MILS member you have access to the MILS Legal advice line, as well as several industry experts for your assistance. Should you find yourself in the situation above, contact us at any stage for advice and assistance as appropriate.