ECJ: Compensation Rights for ‘Dieselgate’ Car Owners

Apr 14, 2023 Benn-Ibler Rechtsanwälte

The European Court of Justice (ECJ) has found: Buyers of motor vehicles equipped with illegal defeat devices are entitled to claim for compensation from vehicle manufacturers.

The plaintiff in the main proceedings pending before a German court had bought a used Mercedes-Benz in 2014. The car was equipped with software that reduces exhaust gas recirculation when outside temperatures drops below a certain threshold, resulting in increased NOx emissions.

In essence, the German court wanted to know whether Directive 2007/46 establishing a framework for the type approval of motor vehicles (Framework Directive) in conjunction with Regulation No 715/2007 should be interpreted as protecting the individual interests of individual purchasers of such motor vehicles. Pursuant to Art 5(2) of Regulation No 715/2007, defeat devices are prohibited.

According to the ECJ, Regulation No 715/2007 serves the general purpose of ensuring a high level of environmental protection. However, the Regulation must also be seen in the context of the regulatory framework for the approval of motor vehicles in the European Union. It follows that a type approval can only be granted if the vehicle type also complies with the requirements of Regulation No 715/2007. In addition, manufacturers are required to provide individual buyers with a certificate of conformity stating that the motor vehicle complies with all the required legal provisions at the time of manufacturing, thus establishing a direct link between the manufacturer and the purchaser. This certificate can thus protect purchasers from the manufacturers’ failure to comply with the obligation to place legally compliant motor vehicles on the market.

As a result, the EU legal framework is therefore also designed to protect the individual interests of individual purchasers. Thus, claims for damages against manufacturers do exist insofar as damage has occurred.

EuGH C-100/21 (21.03.2023)