FRANCE – Class actions were almost inexistent in France before their introduction in French law by the Statute n°2014-344 of March 17, 2014. The key aspects of this new law have already been outlined in our previous post dated 28 January 2015. The following aims at presenting the only 6 class actions brought before the courts since the implementation of the statute in October 2014 and the foreseeable development of the class and collective actions in the Health field.
- Only 6 Class Actions Have Been Introduced in France Since the Implementation of the New Law
- UFC-QUE CHOISIR vs FONCIA (property management group) : UFC-QUE CHOISIR alleged that FONCIA illicitly charged tenants for sending them monthly rent payment receipts for an amount of 2.3 euros per month (318,000 claimants for a total amount of around € 2 millions).
- CONFÉDÉRATION NATIONALE DU LOGEMENT (CNL) vs IMMOBILIÈRE 3F (public housing group): CNL alleged abusive nature of a clause in the general terms and conditions of the lease contract providing for a financial penalty of 2% in case of delayed rent payments (190,000 claimants for several tens to several hundreds of euros by tenant – assessment of total amount at stake not available).
- CONSOMMATION, LOGEMENT ET CADRE DE VIE (CLCV) vs. AGIPI and one of the main French insurance companies: CLCV alleged a breach of their contractual obligations by the insurance companies guaranteeing a minimum return rate on life-insurance placements. (100,000 claimants for an estimated amount of € 300 to 500 millions).
- FAMILLES RURALES vs SFR (telecommunication company), FAMILLES RURALES alleged unfair commercial practice by SFR by misleading consumers on the coverage of its network (around 1 to 2 millions claimants, – assessment of total amount at stake not available).
- FAMILLES RURALES vs LE MANOIR DE KER AN POUL (camping company): FAMILLES RURALES alleged abusive practice for forcing the mobile homes owners to purchase a new one after 10 years to keep their plot (a dozen families – assessment of total amount at stake not available).
- SYNDICAT DU LOGEMENT ET DE LA CONSOMMATION (SLC-CSF) vs. PARIS HABITAT (public housing group): this action was settled in May 2015 for an amount of € 2 millions. The defendant agreed to reimburse 100,000 tenants for undue charges regarding installation of remote monitoring equipment (100,000 claimants for an estimated amount of around € 3 millions).
To date only 5 class actions are still pending before the French courts. The limited number of bodies entitled to bring class actions – only 15 appointed-by-law national consumer organizations – together with the limited scope of application of the law – only damages suffered personally as consumers – and the specificities of consumer law in France probably explain the very low number of class actions in France as of today.
However, class and collective actions are still developing in France.
2. The Extension of Class and Collective Actions to Damages in the Health Field
On 26 January 2016 the law on modernization of the French health system – Statute n°2016-41 – has introduced a class action in the Health field. Based on the existing model in consumer law, the health related class action is subject to two steps: (i) a judgment on liability and (ii) the individual indemnification of damages. This class action will enter into force by July 1, 2016 at the latest.
The scope of application of this new class action is very broad as it regards:
- Products within the scope of National Security Agency of Medicines and Health Products (ANSM): medicinal products, medical devices, cosmetics, labile blood products, etc.;
- Approximately 500 appointed-by-law national or regional organizations of users of the health system who are put in identical or similar situations can initiate a class action;
- Producers, suppliers, providers using products covered in the list aforementioned, insurers (a direct right of action is also admitted) can be prosecuted under the provisions of this new law;
However, the scope of application is limited to individual damages resulting from personal injury and to breach of a legal or a contractual obligation.
This new law concerns all events giving rise to liability whether or not they occurred prior to its implementation. It is clear that the arrival of class action in the Health field in France will force the Health industry companies to integrate additional risk management.
Conclusion:
It is noticeable that class actions have not disrupted the French judicial system yet. However, the class action à la française should not be underestimated. No doubt that the extension of class actions to damages in the Health field associated with the emergence of third party funders aiming at promoting access to justice by providing financial support to claimants in return for a share of the award assuming the case is won, will inevitably contribute to an increase of the number of class actions in France.
