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Class action filed against Mercedes-Benz
Yesterday (21 November), Australian compensation law firm Gerard Malouf & Partners filed proceedings against Mercedes-Benz Australia and Mercedes-Benz Group, claiming hundreds of millions on behalf of past and present owners of certain diesel vehicles.
Jerome Doraisamy
Last month, Lawyers Weekly reported that Gerard Malouf & Partners (GMP Law) had begun registrations for class actions against Mercedes-Benz and BMW, following regulatory investigations by authorities in Germany and Europe for the installation of “cheat devices” by the respective parent companies of Mercedes-Benz Australia/Pacific and BMW Australia.
It is estimated, the firm said in a statement, that this could have affected a minimum of tens of thousands of Mercedes diesel vehicles sold in Australia from 2008 to 2018.
“It is alleged that these ‘cheat devices’ manipulate diesel engine emission levels of harmful gases, including nitrogen oxide (NOx), to pass regulatory testing,” GMP Law argued.
“Such harmful gases are associated with accelerating climate change, acid rain, and causing respiratory conditions as well as premature death and irreversible environmental damage.”
Past or present owners of affected Mercedes diesel vehicles, either new or second-hand, manufactured on or after 1 January 2008 until 31 December 2018 may be eligible class members and entitled to significant damages per vehicle, the firm detailed, which could include a portion of the purchase price.
Speaking about the proceedings, GMP Law chair Gerard Malouf said: “This information-sharing arrangement between HB and GMP Law is a great step forward towards achieving just compensation for those consumers in Australia which have been affected by Mercedes’ ‘cheat devices’.
“Based upon the findings from the numerous international court proceedings as well as government investigations, we strongly believe Mercedes has been a serious case to answer.
“We intend to stand up for the rights of all consumers to protect their health, financial interests and the environment.
“We will run this case at our own cost without any risk to class members and will seek a group cost order without a legal funder to ensure class members receive the absolute maximum in damages from any award or settlement.”
GMP Law said that it would seek damages for compensation for the loss of value of affected vehicles, as well as punitive damages.
The firm anticipates, it proclaimed, that damages for this class action will “likely be in the $100s [sic] of millions”.
For these proceedings, GMP Law has entered an information-sharing arrangement with United States-based class action law firm Hagens Berman Sobol Shapiro LLP, which conducted a similar class action against Mercedes for diesel emissions in the US, which settled in September 2020 for approximately AU$1.3 billion.
