Emissions scandal paves the way for class actions in Germany
The manipulation of vehicle emissions figures by car manufacturers marked the start of a new chapter in German legal history. Class actions are now being brought in Germany, too. It’s only a matter of time before litigious Germans join together to take other companies to court.
1st November 2018: this was an important day in German legal history. It was the day on which the test case was filed. Under new articles 606 ff of the German Code of Civil Procedure, claims of multiple claimants can be filed jointly by relevant associations and organisations. For this to happen, at least 50 claimants have to be recorded in a litigation register.
Germans have demonstrated their eagerness to take advantage of the new possibility of bringing class actions with gusto. Without a moment’s delay, German consumer association VZBV filed a test case against Volkswagen AG in conjunction with auto club ADAC on 1st November. More than 300,000 parties had joined the action by the deadline of 31st December 2018. The progress and outcome of this test case will act as a signal for future actions. In essence, the courts have to decide whether the claimants suffered a loss for which they are due compensation. The courts will also have to rule on whether or not a settlement would be appropriate for all parties.
Claimants can accept this proposed settlement. But they are under no obligation to do so. If a claimant does not accept a proposed settlement, they must file their individual claim in a separate action. The judgments of the courts on the test cases filed and the claimants’ reactions to this will thus break new legal ground.
Many citizens who believe that they have been wronged by other companies are eagerly awaiting the outcome. They hope that this will form a basis which will allow them to successfully bring their cases before the courts, too. They’re fired up by the active promotion of the test case by consumer associations and law firms.
October 2015; Source: Statista