German Supreme Court hands down landmark decision against VW
The court has ruled that the purchaser of a VW vehicle equipped with a “switch-off” device that manipulated emissions tests is entitled to claim damages from VW
Under the reference number VI ZR 252/19, the Supreme Court has ruled that the purchaser of a VW vehicle equipped with a “switch-off” device that manipulated emissions tests is entitled to claim damages from VW. The purchaser may request reimbursement of the full purchase price paid for the vehicle, subject to a deduction based on the car’s mileage, to take into account the benefit they have received from owning the vehicle. In the case in hand, this resulted in a payment of € 26,000 to the purchaser.
The Supreme Court followed the decision of the Court of Appeal, which had assumed that the underlying strategic decision regarding the development and use of the illegal software had been made by board level individuals, or at least had been implemented for years with the knowledge and approval of such individuals, including those responsible for the defendant's research and development operations. In the opinion of the Supreme Court, the Court of Appeal rightly attributed the behaviour of these individuals to the defendant.
According to the Judges, a potential future operating ban is not required for damages to be awarded. The danger that the vehicle could be immobilized or affected in operation was sufficient for them to order compensation.
The Supreme Court ruling is an important point of orientation for the approximately 60.000 other German cases currently pending against VW in respect of the emissions scandal. However, it only affects those plaintiffs who did not recently agree to a settlement with VW in class action equivalent proceedings. Nevertheless, many legal questions remain unresolved. The Judges in Karlsruhe have already scheduled the next three hearings on other similar cases for July, with more to follow and commentators estimate the liability of VW arising from this judgment to be in the billions.
Simmons & Simmons are advising in various offices on a number of aspects of the “Dieselgate“ scandal, including advice on the Department of Justice monitorship and the Environmental Protection Agency auditorship.
