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The most important questions about the BGH ruling

VW emissions scandal.

After almost 5 years emissions scandal The Federal Court of Justice (BGH) has finally ensured legal certainty with a landmark ruling. The court has made it clear that buyers of manipulated diesel cars from VW are entitled to compensation. But who benefits from this decision? Who can still sue? And what about owners of vehicles from other manufacturers who also illegal defeat devices Here you will find answers to the most important questions.

What exactly did the BGH decide?

The Federal Court of Justice has ruled that buyers of a manipulated VW diesel are entitled to compensation, regardless of whether they have purchased a new or used car. Because the installation of illegal shutdown devices has VW has intentionally and immorally harmed its customers in a particularly reprehensible manner in accordance with Section 826 of the German Civil Code (BGB) and has deliberately exploited their trust and innocence for years in order to maximize profits. Stephan Seiters, presiding judge at the Federal Court of Justice, has found clear words on this and determined that damage was already caused when the car was purchased. Affected car owners can therefore return their vehicle in return for a refund of the purchase price less compensation for the kilometers already driven.

What case was the basis for the BGH ruling?

In the underlying case, the buyer of a VW Sharan 2.0 TDI one-year-old car with a manipulated EA189 engine had sued for the vehicle to be taken back. He had purchased the diesel in 2014 for 31,500 euros. In the first instance, the Bad Kreuznach Regional Court dismissed his claim. However, the Koblenz Higher Regional Court (OLG) ordered VW to reimburse the purchase price less compensation for use. The Federal Court of Justice examined this judgment in the appeal proceedings (case number VI ZR 252/19) for legal errors and essentially confirmed it. 

What is the usage fee all about – how is it calculated?

Although the highest civil judges considered VW's actions to be particularly reprehensible, they awarded the car company compensation for the kilometers driven with the fraudulent diesel. According to presiding judge Stephan Seiters, German law does not recognize punitive damages. 
In 1976, the Federal Court of Justice had assessed this question differently: At that time, it was stated that such an advantage should only be taken into account if it is reasonable for the injured party and does not unfairly relieve the person who caused the damage. This opinion is also supported in the emissions scandal Some courts followed suit, including the Frankfurt am Main Regional Court. Unfortunately, with its current ruling, the Federal Court of Justice has abandoned this self-established principle. 
The mileage that the judges set for each specific case is crucial for calculating the compensation for use. Courts generally assume 250,000 to 300,000 kilometers. You can easily determine the individual value using our compensation for use calculator. 

What is the significance of the BGH’s decision?

In principle, the BGH ruling only applies to the individual case of the Sharan buyer. Other judges are not necessarily bound by it. Nevertheless, the decision of the highest German civil court has a significant impact on all other pending proceedings in the emissions scandal. This is because lower courts such as regional courts and higher regional courts will base their decisions on the highest court's decision, and certainly not only in proceedings against the Volkswagen Group, but also against other car manufacturers who have deceived their customers with software manipulation. For this reason, the Karlsruhe ruling is a milestone - and a historic victory for consumer protection.

Who now benefits from the BGH ruling?

In any case, buyers of manipulated diesels who purchased their vehicle before the emissions scandal became known, i.e. before September 2015. They can now assert claims for rescission and compensation, both for new and used cars. 
Car owners who only found out on January 1, 2017, that their diesel car had an illegal switch-off device, and buyers who have already filed a lawsuit without a legally binding judgment in their case, should also benefit from the decision. This also applies to participants in the model declaratory action who have not accepted a settlement offer from VW or have withdrawn their consent and whose claims have not yet expired. 
In all other cases, claims are probably time-barred, although the Federal Court of Justice has not yet made a specific statement on the question of limitation.

What will VW do now?

Immediately after the Karlsruhe decision, VW announced that it would offer compensation to the approximately 60,000 plaintiffs whose cases have not yet been concluded, without having to return the vehicle. We recommend that all those affected have such an offer examined by a lawyer to know exactly whether it is really worth it. This is more likely to be the case for frequent drivers because the usage compensation is deducted from the purchase price. For anyone who has driven an expensive vehicle little, an individual lawsuit could be the more promising option. This depends on the individual case.

What if I bought a fraudulent diesel with an engine other than the EA 189 or from another manufacturer?

The BGH's decision initially only affects the individual case of the Sharan buyer. This vehicle is fitted with the "scandal engine" EA 189. But it is now known that Volkswagen also cheated with the supposedly clean successor EA 288, as well as with the EA 897, which was mainly fitted in the group's premium diesels. In addition, other car manufacturers have also carried out illegal emissions manipulation and have been ordered to pay damages as a result. They also have to dress warmly now, because the BGH ruling has a signal effect on these cases. In addition, a decision from the European Court of Justice (ECJ) is still pending. This concerns the admissibility of "thermo windows" used by BMW and Daimler, among others. Here, too, we expect a consumer-friendly ruling - and a new wave of lawsuits.

What questions are still open and when will they be decided?

The BGH's landmark ruling has brought legal certainty to key questions, but some remain open: for example, the interest on tortious property that many regional courts and some higher regional courts have awarded to victims. The question of the statute of limitations and whether purchasing a vehicle after the emissions scandal has become public knowledge still entitles the person to compensation still needs to be clarified. These questions may be discussed at three further hearings scheduled by the BGH on July 21 and 28.

What do I have to do now to assert my claim for damages?

We recommend that you urgently seek competent support from an experienced lawyer. He can assess your chances and plan the next steps with you so that you get your rights. 

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