Group Litigation Orders: Binding Effect Of Decisions In Test Cases

A recent High Court decision illustrates the complexities that can arise in determining the effect a decision in a test case will have on all the other claims pursued under a group litigation order (or "GLO"): Axa Sun Life Plc v Commissioners of Inland Revenue [2023] EWHC 944 (Ch).

The purpose of a GLO is to enable the court to determine the common or related issues that arise in multiple similar claims, known as the "GLO issues", more efficiently and cost effectively than if the claims were dealt with individually. With that aim in mind, CPR 19.23 (formerly 19.12) provides that where a GLO has been made, a judgment or order in a claim on the group register in relation to one or more GLO issues is binding on the parties to all other claims on the group register at that time, unless the court orders otherwise.