The Court of Appeal has handed down its judgment in Black Horse Ltd v Angel & Others [2026] EWCA Civ 831, dismissing appeals brought by a number of motor finance lenders seeking to separate more than 5,000 unfair relationship claims into individual proceedings.
Whilst the lenders were unsuccessful, the judgment is notable for far more than the outcome. The Court delivered significant guidance on the management of large-scale consumer credit litigation, whilst issuing clear criticism of the costs and procedural approach adopted by both claimant and defendant representatives.
The background
The claims concern allegations that motor finance lenders failed to disclose discretionary commission arrangements between themselves and motor dealers, with claimants alleging that those arrangements created unfair relationships under sections 140A and 140B of the Consumer Credit Act 1974.
More than 5,000 claimants issued proceedings against eight different lenders using eight multi-claimant claim forms.
The lenders argued that the claims should instead proceed as thousands of individual actions because each claim would ultimately require its own assessment of whether the relationship between lender and customer was unfair.
The Court of Appeal rejected that argument, concluding that the claims could continue within the existing multi-claimant structure.
A practical approach to case management
Although the Court reaffirmed that unfair relationship claims remain highly fact-specific, it also recognised that effective case management forms part of the assessment under CPR 7.3.
The judgment confirms that:
- convenience extends beyond the final trial and includes effective case management throughout proceedings;
- lead cases and staged litigation may provide an appropriate route to resolving common issues and encouraging settlement;
- courts should consider the interests of all parties, alongside the efficient use of court resources, when determining whether claims should proceed together.
For firms involved in consumer credit litigation, the decision provides useful guidance on the Court’s willingness to retain multi-claimant proceedings where doing so promotes efficient case management and access to justice.
A clear warning on proportionality
Perhaps the most striking aspect of the judgment is the Court’s criticism of how the litigation has been conducted to date.
Lord Justice Coulson observed that, after more than three years, the proceedings had achieved “almost nothing” other than generating substantial legal costs.
The judgment records that one appeal alone incurred claimant costs of approximately £1.3 million, with defendant costs likely to have been at least the same, despite the underlying individual claims being worth around £1,000 each. The Court described that level of expenditure as “insupportable”.
The Court also criticised the lack of cooperation between the parties and commented that an overly adversarial approach had contributed to unnecessary complexity, delay and escalating costs.
Why the judgment matters
Whilst the appeal centred on procedural issues rather than the underlying merits of discretionary commission claims, the decision is likely to influence the management of future consumer credit litigation.
The Court has reinforced that:
- unfair relationship claims require an individual factual assessment;
- proportionate and effective case management is central to achieving efficient outcomes;
- procedural disputes should not overshadow the timely and cost-effective resolution of substantive claims.
As motor finance litigation continues to develop following the Supreme Court’s decision in Hopcraft, this judgment provides further clarity on how the courts expect large-scale consumer credit claims to be managed in practice.
Craig Leigh, Barrister & Managing Director at 8PP Barristers & Associates, commented:
“This judgment is significant not simply because the Court of Appeal dismissed the lenders’ appeals, but because of the clear emphasis placed on proportionate case management.
“The Court has recognised that effective management of large-scale consumer credit litigation is essential if access to justice is to be preserved, whilst also making clear that procedural disputes and costs must remain proportionate to the value of the underlying claims.
“Those observations are likely to resonate well beyond motor finance litigation and provide useful guidance for practitioners managing complex, high-volume claims.”
Supporting law firms through complex litigation
As modern litigation continues to evolve, effective case management, proportionate costs and access to appropriate funding remain critical to achieving successful outcomes.
8PP’s Consumer Credit and Costs & Civil Litigation Funding teams work in partnership with solicitors nationwide, providing specialist advocacy, strategic advice and expertise across complex and high-volume litigation. Our team understands both the legal and commercial challenges facing firms and delivers practical, responsive support throughout the lifecycle of a claim.
If you would like to discuss how 8PP can support your litigation practice, please contact our team via clerks@8pp.co.uk or 0151 245 9292 or explore our Consumer Credit and Costs & Civil Litigation Funding services.
