The Diesel Emissions Scandal

The diesel emissions scandal came about because, as well as Volkswagen Group, many automakers had been using software programmed to cheat testing. The actual emissions output of these cars was way more than was reported as a result of this.

There are a few ways in which consumers have lost out due to the Dieselgate scandal:

• The increased Nitrogen Dioxide levels are harmful to people and the environment
• Customers will likely have experienced higher fuel bills and maintenance costs
• The performance of these vehicles was worse than expected

Most vehicles that are eligible were bought between 2008 and 2019. These are the dates when vehicles have been initially uncovered to hold a defeat device.

Volkswagen

Emissions claims began in September 2015, when the United States Environmental Protection Agency (EPA) issued a notice of violation of the Clean Air Act to Volkswagen Group. The agency had found that Volkswagen had intentionally programmed turbocharged direct injection (TDI) diesel engines to activate their emissions controls only during laboratory emissions testing. This caused the vehicles’ NOx output to meet US standards during regulatory testing, while they emitted up to 40 times more NOx in real-world driving.

After an initial agreement with VW, some claimants with some law firms will receive average payments of more than 2,100 each after joining the class action. The high court in London dismissed the proceedings after the settlement.

Volkswagen did not admit any wrongdoing as part of the settlement. In a press release, they said the settlement was a “prudent course of action commercially” to avoid the legal cost of a six-month trial and possible appeals. The company believes too much time has passed since the scandal emerged in 2015 for other owners to bring claims, although there are two other British claims in the early stages of litigation.

Mercedes Claims

Now law firms are focussing on Mercedes. Hagens Berman UK has already gathered 33,000 potential UK claimants in the hope of securing payouts of as much as 5,000 each (although the lawyers will take a 35% cut of any award).

The claim alleges that the carmaker deceived regulators and customers and breached UK consumer law by marketing the cars with false emissions data. That meant the cars allegedly emitted more harmful nitrogen oxides in real-world conditions.

The claim will probably be the first involving Mercedes-Benz cars to make it to UK courts. Law firms are racing to find more owners to join their action. Marketing campaigns have already gathered tens of thousands of potential claimants.

The claims are likely to be joined together under a single group litigation order. This is a legal instrument that allows thousands of similar claims to be tried as one.

Mercedes deny the allegations. A spokesperson for Mercedez said: “We believe the claims brought by the UK law firms are without merit, and will vigorously defend against them or any group action.”

The Mercedes-Benz cars affected were installed with a BlueTEC emissions reduction system. They “intentionally programmed the affected diesels” to shut down its full emissions control system “when the testing parameters were not sensed”, the claimants alleged.

Mercedes had claimed the BlueTEC cars fulfilled the strictest emission standards and were the cleanest diesel cars in the world. However, there is mounting evidence against them. This is why there have already been substantial legal payouts worldwide.

Similar legal action in the US resulted in Mercedes-Benz paying out $700m (508m) in a settlement with thousands of drivers. Steve Berman, a US class action lawyer, said the carmaker had done the same thing in the UK.

How To Join

It is estimated that 1.2 million parties, including private owners, lessees and fleet owners, could have eligible claims. This is based on 700,000 affected vehicles in the UK between 2008 and 2018. Those claims would have a theoretical total value of more than 1bn, the law firm said.

These are complex legal proceedings that require technical expert opinion to establish facts. If you were to try to bring a claim yourself, the costs would be too high. You wouldn’t get this cost back if the decision went against you.

So joining a group legal action may be the only viable option. Even then there’s no guarantee of winning. But these claims are generally litigated on a no win no fee basis.