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VW loses landmark German case as diesel owners stand to receive damages

Karlsruhe (Germany) : A German federal court judge decided that Volkswagen has compensated motorists who have purchased vehicles with diesel engines, which is a major blow to the automaker in its domestic market because of the emissions scandal. Continues to recover.

Germany’s highest court for civil disputes ruled on Monday that people who bought vehicles were entitled in principle to receive damages.

The ruling, which would allow owners to return their vehicles for partial reimbursement of the purchase price, serves as a template for the nearly 60,000 lawsuits that are still pending with lower German courts.

The scandal over engine control equipment that masks excessive nitrogen oxide emissions has so far cost VW more than 30 billion euros ($ 32.7 billion) in damages and regulatory fines, imposed mainly in the United States.

In the US, the authorities banned the affected cars from the roads, triggering claims for compensation after the discovery of so-called defeat devices in diesel engines.

European authorities, however, stopped taking VW cars off the road, forcing VW to argue that reunification claims from customers in its home region were without merit.

European authorities instead forced VW to update its engine control software to ensure that anti-pollution filters were active and the automaker imposed fines for fraud and administrative lapses.

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