Court of Appeal Overturns CAT’s Order Restricting Direct Communication in Collective Proceedings

Citation: [2023] EWCA Civ 1471
Judgment on


In the case of Nippon Yusen Kabushiki Kaisha v Mark McLaren Class Representative Limited, the Court of Appeal (Civil Division) provided an intricate analysis of implications within the Competition Appeal Tribunal (CAT) Rules regarding direct communications between defendants and members of the class in collective proceedings. The case brings to the fore several substantive legal principles related to statutory interpretation, litigation privilege, and rights under Article 10 of the European Convention for the Protection of Human Rights and Fundamental Freedoms (ECHR). The judgment reflects on the procedural correctness, interpretation of the rules, and practical implications of restricting communications in the context of collective proceedings.

Key Facts

The primary dispute resolved by the Court of Appeal concerned whether the CAT Rules prohibited defendants from communicating with class members directly, a practice dubbed “the Restriction,” unless authorized by the CAT. The defendants (Shipping Companies) contended that the CAT misinterpreted the Rules by imposing such a Restriction and further argued against the Restriction on several grounds, including its impact on litigation privilege and Article 10 ECHR rights. The Restriction originated from an order by CAT prompted by letters sent by the defendants to potential class members, a move the CAT deemed inappropriate.

Statutory Interpretation:

A pivotal aspect of the legal discussion revolves around the principles of statutory interpretation. The case underscores the necessity standard where a provision or rule is not expressly stated in legislation; it must not merely be reasonable or desirable but compellingly necessary for the implication to be made, as affirmed in precedents like B (A Minor) v Director of Public Prosecutions and Pwr v Director of Public Prosecutions.

Litigation Privilege:

The Court highlighted the inviolability of litigation privilege, recognizing the implications the Restriction had on this firmly established right. Litigation privilege is considered sacrosanct, permitting parties in litigation to prepare their case free from the risk of having to disclose privileged material, and the case construes the Restriction as unjustifiably trespassing on this privilege.

Article 10 ECHR:

The Court also pondered the Restriction’s potential encroachment on Article 10 ECHR rights, specifically freedom of expression. The opinion of the Court suggested that an a priori ban on communication, subject to tribunal permission, interferes with these rights, although a definitive stance on this point was not taken due to the case being sufficiently decided on other grounds.

Case Management Powers:

The judgment underlines the distinction between what the tribunal’s rules mandate and what is within the discretionary powers of the tribunal, concluding that case-specific, tailored restrictions can be implemented through active case management by the CAT.


The Court of Appeal concluded that the CAT’s Rules do not inherently contain the Restriction as devised by the tribunal. As such, the appeal was allowed, and the Order imposed against the appellants by the CAT was overturned. The Court took the view that the rule against direct communication wasn’t a necessary or inherent implication within the CAT’s Rules and that any need for such a ban should be adjudicated on a case-by-case basis, utilizing the CAT’s case management powers.


In conclusion, the Court of Appeal’s decision in Nippon Yusen Kabushiki Kaisha v Mark McLaren Class Representative Limited reflects a meticulous adherence to principles of statutory interpretation and a pronounced emphasis on preserving rights conferred by legal privilege and Article 10 ECHR. The judgment underscores the absence of a necessary implication within the CAT’s Rules for the Restriction and affirms the approach that any communications protocol should be considered within the context of individual cases, rather than as a blanket rule. This approach allows for greater flexibility and fairness in the conduct of collective proceedings. The decision will guide future conduct within collective proceedings before the CAT and serves as an instructive model for balancing procedural efficiency with substantive legal rights.

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