Mercedes liable for compensation if buyer suffers damage as a result of diesel defeat devices, says ECJ

If you think the ‘Dieselgate’ scandal is so 2015, think again. In a development that means the fallout of the emissions deceptions continues to rumble on, a German court has been advised by the European Court of Justice (ECJ) that Mercedes-Benz will have to compensate diesel car drivers if they’ve suffered damage as a result of defeat devices.

These so-called defeat devices are mechanisms or software to mask the true emissions levels.

An initial claim was brought by the driver of a used Mercedes to a court in Ravensburg, Germany, citing an increase in nitrogen oxide levels from gas recirculation, when the temperature was colder.

The German court initially ruled that Mercedes needed to intend to cause this issue. But upon appeal to the ECJ, ruled that intention or not, the carmaker needs to pay compensation - provided ‘the buyer has suffered damages’.

Mercedes has responded saying it ‘remained to be seen how national courts would apply the ECJ’s ruling’. That’s because some vehicles were recalled and underwent software updates to remedy the defeat device. In an official statement, Mercedes-Benz told TG: "The ECJ has clearly stated that only the damage actually caused to a buyer is relevant. In addition, there must be an unlawful defeat device, which is disputed in the present case.”

In July 2022, the ECJ told VW Group the use of such devices may not be illegal, if it was designed to avoid serious engine damage. The German federal court is set to discuss the ramifications of the ruling on liability law in the country on 8 May. The saga continues.