German Court Orders VW to Buy Back a Cheater Skoda Diesel

A German court has ordered Volkswagen Group to buy back one of the company's Skoda Yeti small crossover vehicles whose diesel engine was rigged to evade emission standards.

The ruling by a three-judge panel in Hildesheim stems from a lawsuit filed by an owner who demands compensation for lost value after VW recalled the model to update emission control software.

Bloomberg News says the judges used unusually harsh language to chastise VW for illegal activity. The panel also rejected the company’s defense that it hasn’t yet determined who was responsible for the original cheater software.

The judges declared “it’s hardly believable” that the decision to use the cheater software “was taken by a low-ranking developer.” The court cites VW for “illegal manipulation” and deceiving its customers.

The ruling supports a “sample” lawsuit strategy being tested in a Brunswick court on behalf of thousands of VW customers. The approach relies on civil tort rather than contract law, Bloomberg says. Germany doesn’t allow U.S.-style class-action lawsuits, in which courts can aggregate similar complaints.

VW, which intends to appeal, claims the judges in Hildesheim adopted a position rejected by courts in at least two other German cities.