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News

Civil Litigation

Feb. 26, 2020

Attorneys rehash damages arguments in VW emissions cheating trial

Although he agreed to reverse an earlier ruling that will boost the consumers’ total potential recovery if they prevail, U.S. District Judge Charles Breyer on Tuesday admonished attorneys representing the consumers for continuing to advance arguments he previously rejected despite having “gone through this any number of times.”

SAN FRANCISCO -- The federal judge overseeing a trial against Volkswagen by consumers pursuing claims arising from the clean diesel emissions scandal tore into plaintiffs' attorneys Tuesday for disregarding his orders barring their desired theory of damages.

Although he agreed to reverse a ruling that would boost the consumers' total potential recovery if they prevail, U.S. District Judge

"We disagree, but that's the ruling of this court," he asserted in a Tuesday hearing, during which he told two plaintiffs' attorneys to "sit down."

Breyer dismissed the jury in the morning on what was scheduled to be the first day it heard arguments on damages to instead clear up what lawyers for both sides would be permitted to argue.

Among the clarifications was a reversal of a previously rejected theory of damages to allow plaintiffs' attorneys to include additional costs, such as sales tax and registration, to their damages calculation. They were previously excluded because Breyer reasoned the consumers would have incurred the fees regardless in buying any vehicle.

Breyer agreed to present the recalculated figure for the total price consumers paid for their cars to the jury after being told a plaintiff would testify he would not have bought any other car, entitling him to recoup its full value if his attorneys prevail on the issue.

Volkswagen agreed to the change.

Although he labeled the additional damages "speculative," defense attorney Robert Giuffra Jr. characterized the amount at issue as insignificant after expressing frustration over "going back-and-forth about this for days" because "plaintiffs don't take no for an answer."

"We've already spent more in lawyer fees talking about this," he said.

Plaintiffs' attorney Scot Wilson repeatedly clashed with Breyer at Tuesday's hearing. In the cross examination of Volkswagen's vice president of its engineering and environmental office, who testified over the efficacy of the correction to the automaker's cheating device, Wilson tried to elicit testimony that Volkswagen failed to give consumers 30-day notice, prohibiting its defense to consumer fraud claims.

Breyer foreclosed the argument, explaining "that's not the way the law works." He added "maybe it's a good idea to use common sense."

Wilson asked if he should sit down given the "court earlier has told me to sit down" and "asked whether I'm really a lawyer."

"I'm sensing hostility from the court," he continued.

Breyer responded he's frustrated because "you ask questions that aren't in court's mind or appropriate to the examination." He then instructed Wilson to continue with his cross examination.

Breyer will first decide in a bench trial, which started Monday, about whether Volkswagen's previous settlements arising out of the clean diesel litigation provided an "appropriate correction" to the misconduct. If he finds it did, plaintiffs cannot pursue damages for fraud under a state consumer protection law, which allows damages against companies that commit unfair and deceptive business practices and permits attorney fees.

The jury will then be brought in on the next phase about any other potential damages plaintiffs. The third phase will determine whether Volkswagen should be further punished for malicious misconduct.

The automaker has spent roughly $25 billion in settlements with federal and state regulators and owners of 599,650 vehicles, according to court filings. Volkswagen offered restitution and other benefits, such as extended warranty and roadside assistance, in addition to bringing cars back to federally approved emissions standards. In re: Volkswagen Clean Diesel Marketing, Sales Practices, and Product Liability Litigation, 15-MD-02672 (N.D. Cal., filed Dec. 8, 2015).


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