Scottish charities will receive grants of up to £3.9 million from unclaimed class action funds. The Gutmann v SW Trains legal case generated the unclaimed funds.
Scottish charities to receive funding from unclaimed class action funds
The Access to Justice Foundation has announced that it will give out £3.9 million of the unclaimed funds from the Gutmann v SW Trains legal case to charities. The organisation said that it will channel the funds to 16 organisations in regions where class members are based.
Scottish charities are expected to receive a portion of the funds. In Scotland, the funds will go to Motherwell & Wishaw Citizens Advice, Renfrewshire Citizens Advice and the Legal Services Agency.
Moreover, the funding will also go to organisations in London, the Southeast of England, and Wales. The organisations to receive funding in these regions include Citizens Advice Croydon, Work Rights Centre, Southern England Law Centre, St Lukes Advice Service, South Wales Law Centre, and Citizens Advice Caerphilly Blaenau Gwent.
Furthermore, the CEO of Access to Justice Foundation, said the channeling of the unclaimed funds gives stronger access to justice.
“Unclaimed funds from collective actions represent a significant opportunity to strengthen access to justice. This ultimately protects consumers and boosts the economy. These organisations are the first point of call for people to understand and enforce their rights. This grant round will ensure that the outcomes of collective actions are felt by consumers across the UK,” said Clare Carter.
This donation provides free legal advice where it is most needed. Legal and consumer advice charities are often the only avenue for people trying to enforce their rights.
Major class action case unexpectedly funds charities
The unclaimed funds channeled to the charities come from the Gutmann v SW Trains legal case. The case resulted in a settlement of up to £25 million , but with less than 1% of the settlement claimed by the passengers.
However, since the amount claimed was low, the Competition Appeal Tribunal (CAT) endorsed a restructuring plan. The court required SW Trains to pay just about £10 million, and £3.8 million was given to the Access to Justice Foundation.