Background

In 2020, the CMA (Competition and Markets Authority) issued an infringement decision against a number of building supply manufacturers (“Defendant Manufacturers”), finding that they had entered into a concerted practice not to supply a particular merchant with specific building supplies.

Following this infringement decision, FRP’s Forensic Services Team was engaged by solicitors acting for the directors of a merchant to provide pre-litigation advice on the potential range of damages that it may be able to claim against the Defendant Manufacturers in a follow-on claim in the Competition Appeal Tribunal (“CAT”).

Action

FRP was initially provided with a draft loss model prepared by the directors of the client together with supporting documentation. FRP then prepared an updated model which sought to test the client’s underlying assumptions. Following several discussions with the directors, a review of the contemporaneous business plans, and research into the industry, FRP provided the client with a range of potential quantum to be adopted by the client in the Claim Form. The quantification was particularly challenging as the client had effectively been prevented from commencing trade, and thus considered the loss of opportunity to the client.

Following the filing of the Claim with the CAT, FRP attended a meeting with the legal representatives of the Defendant Manufacturers, together with one of their economic consultants. During this meeting, FRP presented on the assumption and inputs of its loss calculations and responded to questions from the economic consultant and the Defendant Manufacturers’ counsel.

Outcome

Following FRP’s presentation, the parties to the dispute held a settlement conference and arrived at a settlement in the client’s favour, the terms of which are confidential.