On Thursday, February 25, Volkswagen once again told the court that although it continues to engage in discussions with the U.S. Environmental Protection Agency (EPA) about developing a fix for the diesel vehicles, there is still no agreement on what the fix will be.
March 24, 2016 Deadline
Judge Charles Breyer, the presiding judge on the case, was not very pleased with the lack of progress in that area and ordered Volkswagen to report within the next 30 days on the status of a viable fix for the vehicles and a compensation plan. Judge Breyer was adamant that this situation needs to be addressed with urgency. He had real concerns over the situation that Volkswagen had created and was extremely upset that there are 600,000 cars on U.S. roads that are out of compliance with national standards and are over-polluting the environment. Judge Breyer was clear that he really did not care whether Volkswagen’s solution to fix the cars was the most economically advantageous solution for the company, only that it was done immediately and that it curtailed the emissions problem. Volkswagen lawyers stated that they were committed to resolving matters as quickly as possible and were hopeful that a court ordered settlement would materialize.
Again, Judge Breyer stated that he did not see any issues of liability in this case, meaning that he believes that the only remaining issue is how to fix the affected vehicles and compensate their owners. Volkswagen did not object to such a characterization and reiterated its desire to resolve the claims. Of course, the “devil is in the details” and we will have to wait a bit longer to see what offer Volkswagen makes and whether we view that as acceptable.
Judge Breyer ordered that the Volkswagen Executive Committee and Supervising Board meet with the court-appointed Settlement Master, Director Robert Mueller, in Germany. Judge Breyer wants Mueller, a former head of the FBI, to have the opportunity to have “eyes-on” the company and talk directly to top Volkswagen executives so that they fully understand what the company's potential exposure is in the United States. This shows Judge Breyer’s dedication to keeping a handle on Volkswagen and that he is treating their representations with some skepticism. In light of the current situation, we think that is probably a wise move on his part.
Consolidated Complaint
Finally, plaintiffs lawyers filed a Consolidated Complaint for the case. This filing initiates the consolidated class action litigation in federal court. The Complaint added several defendants to the action, including Porsche and Bosch, the company who invented the software which was implemented in the vehicles and used to defeat federal and state emission standards. The general allegations against the Volkswagen defendants remain that they intentionally installed software into the vehicles which was used to defeat emissions standards, and then falsely marketed the vehicles to you as being environmentally-friendly. These deceptive practices constituted fraud, violated consumer protection laws, and constituted a breach of the express and implied warranties on your vehicle. The Complaint lays out the claims for plaintiffs in each of the 50 states.
