The Dieselgate ‘nightmare’ continues to haunt Volkswagen. Disadvantaged Volkswagen customers in France can still claim compensation five years after being informed that cheating software had been installed in their cars. This was ruled by the Court of Cassation, France’s highest Court.

Previously, the limitation period for civil lawsuits related to the Dieselgate scandal was five years after the purchase. The French press is calling it a “historic decision,” also because the French courts have so far been unable to agree on the date on which the limitation period began.

Role of the Environmental Charter

The Court also found that installing cheating software is a serious breach of the seller’s obligation to deliver a compliant product. Such a breach is severe enough to justify cancellation of the sale and/or damages. This could set a precedent for many other lawsuits, both individual and collective, hence the reference to “historic.”

In reaching its decision, the Court relied for the first time on the Environmental Charter. This 2004 text stipulates “that every person has the right to live in a balanced environment that respects health” and “the duty to participate in the preservation and improvement of the environment.”

A series of processes

In 2015, the German manufacturer admitted that it had sold more than 11 million vehicles equipped with software that detected test phases to falsify emissions data, and subsequently had to inform the concerned owners. Since then, other manufacturers have also been accused of similar practices.

In France, four lawsuits have been filed to date by the Paris public prosecutor’s office for deception, targeting Volkswagen, Peugeot-Citroën, Renault, and Fiat-Chrysler.

Volkswagen disputes the decision

Owners of Dieselgate-affected cars in France may now bring new civil actions, even many years after their purchase, if they were informed of the fraud within the last five years.

However, lawyer Hugo Delage, whose firm represents the consumer who was the subject of this judgment, points out that it is not necessarily in the interest of victims to take individual action, because “there is already a class action aimed at obtaining compensation for all French consumers.”

Another point related to the new ruling is that no decision has yet been made regarding the amount of compensation, who will be eligible, and how the collective action will be organized (e.g., who can participate and what burden of proof applies).

Volkswagen has already announced that it disputes the decision and reasoning and reserves the right to appeal.