Flash update: Will our students bring a group claim against us?

Why?

According to the Student Claim Group’s website: “Students have been let down by their universities. They paid full fees for a university experience that they were not sold. They’re frustrated, disillusioned, even angry… Students have tried to fight back but they’ve been no match for these powerful institutions. That’s where the Student Group Claim comes in. We exist to address the power imbalance between those students and graduates affected, and the universities. By bringing the claimants together under a Group Litigation Order, they stand a fighting chance of getting the compensation and justice they deserve.”

Like most class actions, a “no win, no fee” arrangement has been set-up for the students and graduates.  This means that they will not be required to pay anything at the point they join the claim. All legal fees will be met out of the compensation awarded if the group wins its claim (with contributions capped at 35%). The Student Claim Group estimates that UK-resident undergraduates who were at university during the pandemic will each be able to claim on average £5,000 in compensation. Potential UK-resident student/graduates therefore don’t have a lot to lose by signing up to the Student Claim Group, but potentially approx. over £3,000 to gain. Tuition fees for international students are of course considerably more than this, and should they bring a claim, the compensation claimed would be significantly higher.

The Student Claim Group’s sign-up form lists multiple universities where a substantial proportion of the students who studied there have already joined the claim. If the university isn’t already listed, but a student thinks it ought to be, they can also email the Student Group Claim so that consideration can be given to adding that university as a further defendant – so it appears no university is safe.

There are a variety of FAQs on the Student Claim Group’s website that seek to alleviate any concerns a potential student may have in joining the claim, such as ‘could there be a negative impact on me as a result of signing up to the claim?’, ‘am I entitled to compensation if my course moved online?’ and ‘am I entitled to compensation if some of my classes were cancelled due to strike action?’ as well as many others.

Claim against University College London (UCL) – the test case!

Earlier this year, hundreds of current and former students commenced a group claim in the High Court against UCL for breach of contract during the Covid-19 crisis.

Earlier this month, UCL attempted to block the court proceedings arguing the students should follow the university’s complaints procedure and/or complain to the Office of the Independent Adjudicator (OIA) in the first instance before any legal action takes place. The Student Claim Group, on behalf of the students, said this was a “delay tactic” intended to deny students their contractual rights.  The Judge decided that the student’s concerns were “valid” and proceedings could therefore continue – she was particularly persuaded by her concerns as to whether UCL had and/or would have sufficient resources to handle the potential volume of complaints.

The Judge also strongly urged the parties to try and resolve the dispute out of court and ordered a “stay of proceedings” for up to eight months to try and do so. If no resolution has been made within four months though, the Student Claim Group can apply for the proceedings to continue from that point – UCL therefore has to meaningfully and constructively engage in a form of ADR (Alternative Dispute Resolution) in order to try and resolve the students’ claims or, at the very least, to try and narrow and agree the issues in dispute.

Claims against other universities

In total, 18 universities across the UK have reportedly received “Letters Before Action” on behalf of the Student Claim Group and the students it represents, including Bristol, Manchester, Liverpool, Imperial College London and the London School of Economics. Others are expected to follow.

What next?

Whether the proceedings continue, or a settlement is reached in the UCL test case, it could pave the way for a flurry of lawsuits against British universities for disruption to students’ learning as a result of the Covid-19 pandemic and the recent strike action. It could leave universities in the UK with a collective bill of anywhere between £600m and £1bn in compensation if successful claims are brought by all affected students.

And will it end at tuition fees, or might the students start claiming for other expenses such as rent for student accommodation etc. too?

What to do if you receive a Letter Before Action?

If you receive a Letter Before Action from either the Student Claim Group and/or an individual student, please get in touch with us as soon as possible as there are usually strict deadlines within which you need to respond to avoid court proceedings being issued.

We can advise you on the best way to respond to a Letter Before Action, including securing more time to deal with the response – especially if the Letter Before Action be received over the summer period when many members of staff may be unavailable, and guide you through the potential court proceedings, including any ADR which you may be required to take part in.

Our Disputes team is proud to work with many organisations within the Education sector, but who are also experts in disputes involving breach of contract. Please get in touch with Adele Whaley.