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German Court okay compensation claims against carmakers that installed illegal diesel exhaust treatment software

The German Federal Court of Justice (BGH) has paved the way for potential compensation claims against car manufacturers who installed unlawful diesel exhaust treatment software. This follows a significant ruling by the European Court of Justice (ECJ). The BGH in Karlsruhe has ruled that owners of diesel vehicles equipped with the “thermal window” program would be eligible for damages if their cars faced the risk of being taken off the road due to the software. If successful, claimants could receive compensation ranging from five to fifteen percent of the car’s price.

In March, the ECJ stated that consumers had the right to seek compensation if their vehicles were equipped with the illegal software. The exact extent of these claims was left for German courts to determine. The “thermal window” program reduced or disabled emissions filtering when temperatures fell below 15 degrees Celsius (59 degrees Fahrenheit) or rose above 33 degrees Celsius. Carmakers have long argued that this software was necessary to protect the engine, despite its adverse impact on pollution levels.

Until now, German judges had set high standards for granting damages related to the “thermal window,” requiring plaintiffs to prove that the car manufacturer had intentionally harmed the buyer, rather than being merely negligent. Claus Goldenstein, a German consumer lawyer representing approximately 50,000 claimants in emissions-cheating cases, welcomed the BGH ruling, noting that it could benefit millions of consumers across Europe. Goldenstein emphasized that pursuing claims for damages has never been easier than it is now.

It’s important to note that the “thermal window” software issue is distinct from the dieselgate scandal that erupted in 2015 when Volkswagen admitted to installing illegal defeat devices in millions of diesel cars to deceive emissions tests. The software used in the dieselgate scandal made the vehicles appear less polluting during lab tests than they actually were on the road.

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