COURT RULES AGAINST WOLKSWAGEN IN ‘DIESELGATE’ COMPENSATION SCANDAL
COURT RULES AGAINST WOLKSWAGEN IN ‘DIESELGATE’ COMPENSATION SCANDAL
Emission Manipulation Of Volkswagen (VW) Group’s Diesel Cars And Its Legal Results And Turkish Consumer Law – Environmental Law Turkey
The “Dieselgate” scandal of VW Group has triggered legal debates on seve- ral aspects. Fraud has been committed in 11 million diesel cars of VW Group through emission manipulation. Researchers have shown that these cars pose a significant danger to the environment and public health In the US, where the manipulation had been revealed, the first class action regarding the incident has ended with the settlement of the parties, which is likely to set a precedent for the rest of the world. The EU, on the other hand, had kept silent for a long while, until the EU Commission has finally taken action as a result of increasing public pressure. Germany is currently in an absolute chaos, both sectoral and legally. After the scandal, the courts have rendered contradictory decisions regarding the rights of the buyers. Additionally, actions of damages with great sums have been filed in Germany due to the loss of value of VW company shares. It is necessary to discuss the legal aspects of the case in Turkey, where VW Group diesel cars are the most favored. The fraud committed through emission manipulation consti- tutes unfair competition on grounds of deceptiveness and not abiding by busi- ness conditions in Turkish law. These cars are defective goods according to Tur- kish consumer law. The customers that had bought these cars could use their alternative rights as foreseen in Turkish Consumer Code. Moreover, the sales of these cars may be suspended in accordance with the Code. Lastly, VW Group is subject to legal and criminal liabilities in respect of Turkish environmental law, because of the emission manipulation in diesel cars.
Dieselgate, emission manipulation, Turkish unfair competition law, consumer law, environmental law, Turkish Consumer Protection Law, tort law , product liability under Turkish law
https://dergipark.org.tr/en/pub/iuhfm/issue/28495/305043
New Emissions Blow For VW As German Court Backs Damages Claims ( Reuhters )
KARLSRUHE, Germany (Reuters) – Volkswagen (VOWG_p.DE) must pay compensation to owners of vehicles with rigged diesel engines in Germany, a court ruled on Monday, dealing a fresh blow to the automaker almost five years after its emissions scandal erupted.
FILE PHOTO: A cartoon of a VW logo squashing the coronavirus is displayed on a building at Volkswagen’s headquarters to celebrate the plant’s re-opening during the spread of the coronavirus disease (COVID-19) in Wolfsburg, Germany April 25, 2020. REUTERS/Fabian Bimmer
The ruling by Germany’s highest court for civil disputes, which will allow owners to return vehicles for a partial refund of the purchase price, serves as a template for about 60,000 lawsuits that are still pending with lower German courts.
Volkswagen admitted in September 2015 to cheating emissions tests on diesel engines, a scandal which has already cost it more than 30 billion euros ($33 billion) in regulatory fines and vehicle refits, mostly in the United States.
U.S. authorities banned the affected cars after the cheat software was discovered, triggering claims for compensation.
But in Europe vehicles remained on the roads, leading Volkswagen to argue compensation claims there were without merit. European authorities instead forced the company to update its engine control software and fined it for fraud and administrative lapses.
Volkswagen said on Monday it would work urgently with motorists on an agreement that would see them hold on to the vehicles for a one-off compensation payment.
It did not give an estimate of how much the ruling by the German federal court, the Bundesgerichtshof (BGH), might cost it.Volkswagen shares were 0.5% lower at 1040 GMT. The BGH’s presiding judge had signalled earlier this month he saw grounds for compensation.
COSTS MOUNT
“The verdict by the BGH draws a final line. It creates clarity on the BGH’s views on the underlying questions in the diesel proceedings for most of the 60,000 cases still pending,” Volkswagen said.
A lower court in the city of Koblenz had previously ruled the owner of a VW Sharan minivan had suffered pre-meditated damage, entitling him to reimbursement minus a discount for the mileage the motorist had already benefited from.
The court at the time said he should be awarded 25,600 euros for the used-car purchase he made for 31,500 euros in 2014.
“We have in principle confirmed the verdict from the Koblenz upper regional court,” said BGH presiding federal judge Stephan Seiters.
Volkswagen had petitioned for the ruling to be quashed altogether by the higher court, while the plaintiff had appealed to have the deduction removed.
A Volkswagen spokesman said that outside Germany, more than 100,000 claims for damages were still pending, of which 90,000 cases were in Britain.
The carmaker also said it had paid out a total of 750 million euros to more than 200,000 separate claimants in Germany who had opted against individual claims and instead joined a class action lawsuit brought by a German consumer group.
The carmaker said last month it would set aside a total of 830 million for that deal.
In a separate court, Volkswagen agreed last week to pay 9 million euros to end proceedings against its chairman and chief executive, who were accused of withholding market-moving information before the emissions scandal came to light.
https://www.reuters.com/article
German Court Rules Against Wolkswagen in ‘Dieselgate’ Compensation Scandal ( Euronews)
Germany’s highest court has ruled against Volkswagen in a landmark case connected to the diesel emissions scandal and paving the way for several thousand similar claims from customers.
Germany’s Federal Court (BGH) passed a binding ruling on Monday on the case of Herbert Gilbert, who demanded to be reimbursed for the full purchase price of his car. According to the ruling, he is entitled to a partial reimbursement upon returning the vehicle to VW.
The claim related to the so-called ‘Diesel-gate’ scandal, under which the German carmaker admitted manipulating vehicles in order to fool emissions tests.
A VW spokesperson stated that the company will now approach other customers who had made claims and offer them a one-time reimbursement if they return their car. In a statement sent to Euronews, VW spokesperson Nicolai Laude said the size of that reimbursement will be determined on a case-by-case basis.
She also said the ruling is no cause for new claims, adding that there are still unanswered questions, such as a statute of limitations, and whether customers who have bought their car after September 2015 are allowed to make claims, as well.
At a press conference, Gilbert said this is “a great day and a great ruling, which I had anticipated. This ruling will help thousands of other plaintiffs who have been stuck in their proceedings to finally reach a conclusion.”
The judgment could pave the way for several thousand ongoing claims against VW. At least 11 million cars were involved in the scandal, eight million of them in Europe.
VW will likely be obligated to pay compensation
Judges had already ruled that VW will be obligated to pay compensation, but that customers would not receive the entire purchase price of their vehicle. Instead, they would receive a so-called “usage compensation” for the kilometres driven.
But Gilbert instead made a compensation claim for the entire purchase price of €31,500 for his VW Sharan.
A higher regional court in Coblenz had ruled that Gilbert was owed €25,600 plus interest upon returning his car. Both parties had appealed against this judgment.
VW argues that no damage had been caused to the customer by installing the exhaust software, as the vehicle could be used at any time and the software’s installation had not caused any loss of value or other defects.
Euronews has reached out to VW for comment on the ruling.
May 2020 EuroNews
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Emission Manipulation Of Volkswagen (VW) Group’s Diesel Cars And Its Legal Results And Turkish Consumer Law – Environmental Law Turkey
The “Dieselgate” scandal of VW Group has triggered legal debates on seve- ral aspects. Fraud has been committed in 11 million diesel cars of VW Group through emission manipulation. Researchers have shown that these cars pose a significant danger to the environment and public health In the US, where the manipulation had been revealed, the first class action regarding the incident has ended with the settlement of the parties, which is likely to set a precedent for the rest of the world. The EU, on the other hand, had kept silent for a long while, until the EU Commission has finally taken action as a result of increasing public pressure. Germany is currently in an absolute chaos, both sectoral and legally. After the scandal, the courts have rendered contradictory decisions regarding the rights of the buyers. Additionally, actions of damages with great sums have been filed in Germany due to the loss of value of VW company shares. It is necessary to discuss the legal aspects of the case in Turkey, where VW Group diesel cars are the most favored. The fraud committed through emission manipulation consti- tutes unfair competition on grounds of deceptiveness and not abiding by busi- ness conditions in Turkish law. These cars are defective goods according to Tur- kish consumer law. The customers that had bought these cars could use their alternative rights as foreseen in Turkish Consumer Code. Moreover, the sales of these cars may be suspended in accordance with the Code. Lastly, VW Group is subject to legal and criminal liabilities in respect of Turkish environmental law, because of the emission manipulation in diesel cars.
Dieselgate, emission manipulation, Turkish unfair competition law, consumer law, environmental law, Turkish Consumer Protection Law, tort law , product liability under Turkish law
https://dergipark.org.tr/en/pub/iuhfm/issue/28495/305043