After a lengthy legal battle, the Stuttgart Higher Regional Court (OLG) ruled in favor of consumers on March 28, 2024 (case number: 24 MK 1/21). As part of a model declaratory action brought by the German Federation of Consumer Organizations (vzbv), the Higher Regional Court ruled that Mercedes-Benz had installed illegal defeat devices in some of its diesel models. This represents a significant partial victory for the consumer advocates and a bitter setback for Mercedes-Benz at the company's headquarters.
The ruling is not yet final, as Mercedes-Benz has announced that it will appeal the decision. Affected consumers can successfully assert their claims for damages if the ruling is upheld by the Federal Court of Justice in Karlsruhe.
background the lawsuit
The consumer protection agency's lawsuit focuses on vehicles with a specific engine type that were manufactured between 2012 and 2016 and were later affected by a recall notice from the Federal Motor Transport Authority (KBA).
The model declaratory action was filed in 2021, and the proceedings began in July 2022. 2,848 consumers joined the model declaratory action. However, the proceedings experienced several delays due to the pending outcome of important decisions from the European Court of Justice (ECJ) and the Federal Court of Justice (BGH). These decisions were crucial for the course and structure of the proceedings, which is why the proceedings were postponed several times pending the outcome of these supreme court rulings.
ECJ sensational ruling in favor of consumers
The European Court of Justice (ECJ) ruled in favor of consumer rights in its judgment (C-100/21) of March 21, 2023. According to the ruling, consumers can assert claims for damages even if the manufacturer acted only negligently and not intentionally. Furthermore, the ECJ ruled that the thermal window is unlawful.
BGH follows the consumer-friendly case law of the ECJ
In its judgment of June 26, 2023 (VIa ZR 335/21), the Federal Court of Justice (BGH) followed the ECJ's legal opinion. The BGH confirms that consumers are entitled to compensation even without proof of intent or immorality.
Immorality or negligence?
If a court finds the vehicle to be immoral, car buyers have the option of returning the vehicle to the manufacturer. In this case, they will receive a refund of the purchase price less the vehicle's previous use.
In cases of negligent action on the part of the manufacturer, the difference in damages applies: Under certain conditions, buyers can receive up to 15 percent of the purchase price back without having to return their vehicle. This regulation allows buyers to receive financial compensation for the damage they suffered without having to abandon the vehicle.
Partial success but no direct award of damages
With its recent ruling, the Stuttgart Higher Regional Court confirmed the view of the Federal Motor Transport Authority (KBA) that illegal defeat devices are installed in the affected Euro 6 and Euro 5 models. However, the Stuttgart court also dismissed some parts of the lawsuit. It found that the accused employees knowingly accepted that the vehicles were equipped with illegal systems. However, the court could not establish any intentional action on the part of the automaker, as alleged by the German Consumer Organization (vzbv). Likewise, the court did not support the consumer advocates' claim that members of the Mercedes-Benz board of directors had ordered or approved the use of the identified illegal defeat devices.
Furthermore, the Stuttgart court emphasized that its ruling does not directly order Mercedes to pay specific damages. Rather, consumers' claims must be asserted in individual lawsuits. The chances of success for individual lawsuits involving the affected vehicles have increased significantly as a result of the Higher Regional Court's ruling.
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We will be happy to check for you free of charge whether your Mercedes model is affected by the diesel emissions scandal and calculate the possible amount of your claim for damages. You can contact us by phone, and our advice is completely non-binding. We are happy to assist you in this complex legal area and answer your questions.
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