Ruling of the Schleswig-Holstein Higher Regional Court on Claims for Damages in the Diesel Emissions Scandal
With its judgment of 26.11.2019 (ref.: 17 U 44/19), the Schleswig-Holstein Higher Regional Court (OLG) has provided groundbreaking clarity for the rights of buyers of used vehicles equipped with illegal defeat devices. The decision concerns the so-called diesel emissions scandal, which has had significant legal and economic implications for the automotive industry and vehicle purchasers for years.
In the underlying case, a buyer of a used vehicle with a manipulated diesel engine was awarded damages. The background was the use of software that failed to ensure compliance with emissions limits during regular road use on a permanent basis.
Facts Relevant to the Decision
As early as 2015, it became known for the first time that several car manufacturers had delivered diesel vehicles equipped with devices that activated emission controls on test stands, but reduced or deactivated them during normal road use. The European Union generally considers such defeat devices to be illegal (see Art. 5 para. 2 Regulation (EC) No. 715/2007).
In the specific case, the plaintiff purchased an affected vehicle trusting in compliance with applicable emissions regulations and without knowledge of the manipulated software. She sought compensation for her damages from the manufacturer, in particular rescission of the purchase contract and reversal of the purchase.
Key Legal Considerations of the Court
Claims under §§ 826, 31 BGB (Intentional Immoral Damage/Corporate Liability)
The court stated that placing a vehicle with manipulated software on the market constitutes intentional immoral damage. It was decisive that by using the software, there was a risk that the affected vehicle could lose its registration, suffer a loss in value, or be subject to operational restrictions.
Furthermore, the OLG confirmed that manufacturers may also be liable even when the vehicle—in this case—was purchased as a used car. In particular, the manufacturer bears responsibility for this and, within the framework of § 31 BGB, is liable for the conduct of its board members and senior executives.
Lack of Knowledge of the Buyer and Causality
The buyer was uninformed about the manipulation at the time of purchase. The OLG found that the buyer’s trust in the legality and lawfulness of the products had been violated. The manufacturer’s intentional deception was thus causal for the purchasing decision.
Reversal and Deduction of Usage
The judgment clarifies that the injured party can return the manipulated vehicle against reimbursement of the purchase price, with a reasonable deduction for use based on the kilometers already driven.
Significance for Practice
The judgment is of significant relevance for private individuals, companies, and institutional investors affected by manipulation in connection with diesel vehicles. In particular, the decision strengthens the legal position of used car buyers, as it makes clear that claims are not limited to the original buyer. Limitation periods may be assessed differently depending on the specifics of the case and must be examined accordingly.
Impact on Further Proceedings
The ruling is part of a nationwide body of case law in which courts have granted claims for damages to buyers of diesel vehicles equipped with defeat devices in numerous instances. It is a decision within a complex and still evolving legal landscape. In comparable cases, an individual legal review may always be necessary, as the exact type of software, the time of sale, and potential limitation periods may affect various aspects of the claims situation.
Open Questions and Ongoing Proceedings
The decision of the Schleswig-Holstein OLG is part of a multitude of pending and concluded court proceedings. Highest court rulings, especially by the Federal Court of Justice (BGH) and the European Court of Justice (ECJ), remain dynamic. The presumption of innocence applies in favor of the affected companies until final decisions are rendered.
Conclusion
The Schleswig-Holstein OLG set another milestone in handling claims for damages in connection with the so-called diesel emissions scandal. The decision emphasizes that buyers of used cars are also included within the protective scope of statutory regulations if they unknowingly acquire vehicles with illegal emission control devices.
For further legal questions regarding the purchase of manipulated vehicles, possible claims, or the evaluation of individual circumstances in the context of claims for damages and reversal of purchases, the attorneys at MTR Legal are available for a well-founded assessment.
