Compensation Claims Against Ryanair
Ryanair is able to deal directly with passengers seeking compensation, at least in the first instant, the Court of Appeal has recently ruled. Initially, this cuts out professional advisors from the compensation process.
The claimant firm of Bott & Co Ltd v Ryanair DAC, which firm receives a staggering £100,000 a month from flight delay claims against Ryanair, was not entitled to an interest in the compensation. Passengers with a claim must go through the Ryanair claims process in the first instance, and only when that has run its course can third-party professional advisors become involved.
In 2016 Ryanair changed their contractual terms of business. The effect of this was to require passengers seeking compensation for delays, to deal directly with the airline and to allow it 28 days to respond before instructing a professional advisor.
The claimant firm argued that the clause was invalid under EU law. The firm cited the case of Edmonson, in which the Supreme Court ruled that insurers compensating law firm clients directly were still expected to pay fixed costs. If Bott & Co had been successful on appeal, a principle of the equitable lien would have been extended to other claims.
Lewison LJ said the making of a flight delay claim was ‘largely mechanical and formulaic’, requiring little more than inputting the flight distance and extent of delay. The services provided by a professional advisor generally, and Bott & Co in particular, in processing the vast majority of claims could not be said to be ‘litigation services’ – the phrase used to justify legal costs in the Edmondson case. To promote ‘access to justice’, professional services were ‘not required’, the judge said.
The judge added: ‘Ryanair’s online process for compensation claims does not appear on the evidence to be any more difficult to operate than Bott & Co’s own on-line method of receiving instructions.’ He added it was also difficult to see how Ryanair’s procedure could place a material obstacle in passengers' route to compensation.
Bott & Co, which has asked for leave to appeal, welcomed the court’s decision that claimants are free to use third parties, so long as the claim is made in their name. Senior partner, David Bott, added: ‘This ruling is a victory for passengers, who retain the right to choose who they want to ask for assistance with their claim.’
Personally, I am uncomfortable with the idea of cutting a professional advisor out of the loop, and being legally able to do so simply by amending terms and conditions of business, whether it be an insurer or Ryanair. Ryanair's only motivation can be to discourage claimants, reduce quantum of claims and to cause disruption. In my experience, instructing a professional at an early stage helps ensure a fair process and preserves a claimant’s statutory rights.
Ian Macfarlane
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