Scores victory over ‘ambulance chasing’ firms

A UK court has upheld a requirement by Ryanair for flight delay compensation claims submitted on behalf of passengers by claims management companies to be heard in Irish courts. Liverpool County Court had dismissed an application by flight compensation company Hughes Walker for its claims for delayed and cancelled flights to be heard in England. The Irish airline said it had inserted a clause requiring all compensation claims to be held in Ireland into its booking terms and conditions in 2010, but it said it would only ball back on this clause when claims were submitted on behalf of passengers by third parties. It claimed the clause had been inserted in its T&Cs to ‘protect’ customers from ‘claims chasing’ firms who pursue compensation on behalf of passengers but charge fees of up to 50% of the cost of the payout. The airline said it would only fall back on the ‘exclusive jurisdiction’ clause for claims submitted via a claims compensation firm, such as Hughes Walker. The court heard that another 200 cases involving Ryanair had been put on hold, waiting for today’s ruling, and Judge Graham Wood QC said that the ultimate resolution, whether it be in this or a higher court, would have ‘far reaching ramifications for a vast number of other flight delay claims, and in particular for the lawyers and claims management companies which are involved in this vibrant claim industry and which has been expanding for a number of years’. In fact, Ryanair had already paid the passenger involved in the case, Amelia Menditta, €250 for her delayed flight from Pisa to Stansted in 2015, but the judge said it had decided to defend its jurisdiction claim ‘for seemingly altrustic reasons’. Ryanair’s terms and conditions also state that it won’t consider compensation claims submitted by third parties, including lawyers, unless it has previously received and rejected a claim direct from the individual. The airline’s spokesman Kenny Jacobs said: “We welcome this County Court ruling upholding Ryanair’s jurisdiction clause which prevents ‘claims chaser’ firms deliberately and needlessly dragging consumers through the courts so they can grab up to 50% of customer’s compensation, for providing no useful service.” One flight compensation specialist firm, FlightDelays.co.uk, warned last year that if today’s case went in Ryanair’s favour, it would make it harder for all its passengers to seek compensation. “If passengers were only able to bring a claim using Irish solicitors in the Irish courts, the vast majority of passengers living outside the Republic of Ireland will probably not bother to bring a claim at all – especially bearing in mind that most claims against Ryanair are only worth between £210 and £350,” Nicholas Parkinson told the Guardian. However, Ryanair’s Jacobs added: “As the most reliable airline in Europe, Ryanair has the most on-time flights and the fewest cancellations, and in the rare event of delays or cancellations, we comply fully with all EU261 legislation. Where customers have a valid claim for compensation they can make their claim directly on the Ryanair.com website, and avoid these ‘claims chasers’ deductions. “These ‘ambulance chasers’ of the aviation industry are misleading customers, forcing them to sign liens and taking them through the courts so they can feather their own nests, and then charging up to 50% of the compensation due for simply submitting a claim that can be made free of charge on the Ryanair.com website.” Hughes Walker was given leave to appeal.