German court gives green light for compensation claims against car manufacturers who installed illegal diesel software. This follows a significant ruling by the European Court of Justice.
—
The case
Vehicles equipped with the “thermal window” program could receive payouts if they faced the risk of being taken off the road, as determined by the German Federal Court of Justice. This decision stems from the ECJ’s March ruling. It stated that consumers had the right to compensation if their cars contained the illegal software. The exact scope of claims was left to be determined by German courts.
The software, which reduced or deactivated emissions filtering in certain temperature ranges, had been defended by carmakers as necessary for engine protection. This was despite increased pollution levels. However, the BGH (The Federal Court of Justice, Bundesgerichtshof) noted that car owners would not have made the purchase at the agreed price had they been aware of the software’s presence. Consequently, successful claimants could be entitled to receive compensation ranging from 5% to 15% of the vehicle’s price.
To be exempt from payouts, automakers must prove that the software was not intentionally or negligently installed. The ECJ ruling originated from a case brought by a Mercedes-Benz owner in Ravensburg, Germany, seeking clarification on the “thermal window” software. Previously, German courts had set high standards for damages. They required plaintiffs to demonstrate intentional harm by the car manufacturer rather than mere negligence.
Reaction
Consumer lawyer Claus Goldenstein, representing around 50,000 claimants in emissions-cheating cases, hailed the BGH ruling as a potential benefit for millions of European consumers.
Goldenstein predicted a surge of lawsuits in Germany, as it has become increasingly easier to assert claims for damages. It is important to note that the “thermal window” software issue differs from the 2015 Volkswagen scandal. This is where the company admitted to installing defeat devices to manipulate emissions tests. This revelation triggered numerous lawsuits against Volkswagen and affected other carmakers as well.
—
A news story by PL Talents – your software and data recruitment provider in Germany.