Plaintiffs get $100K in punitive damages against VW

A federal jury in San Francisco on Monday awarded $100,000 in punitive damages to the drivers of four vehicles who refused to accept Volkswagen's settlement in a consumer fraud case involving its 'clean diesel' vehicles with devices that gamed emissions testing procedures.

The four plaintiffs -- a couple and three individuals -- each got $25,000. They were awarded $5,727 in compensatory damages last week. Three other plaintiffs received no damage award.

The plaintiffs were part of a group of 350 vehicle owners who rejected a settlement from Volkswagen, opting to seek damages separately. The trial involving the first set of 10 plaintiffs is a test case. In re: Volkswagen "Clean Diesel" Marketing, Sales Practices, and Products Liability Litigation, 15-MD02672 (N.D. Cal., filed Dec. 8, 2015).

The objectors are represented by Scot D. Wilson and Lauren A. Ungs of Knight Law Group LLP and Bryan C. Altman of Altman Law Group.

"We are encouraged that the jury rejected VW's arguments and awarded punitive damages based on VW's years-long fraud," Altman said in a statement. "At the same time we had hoped to be able to present a more complete picture of the facts to the jury in both phases of the trial. We look forward to the next trial and the opportunity to expose VW's actions that were hidden from the public."

A Volkswagen spokesman said the punitive damages award was too high, even though it's less than the full refunds plaintiffs sought. "These plaintiffs had minimal losses and were rightfully denied the unjustified windfall they were seeking. Plaintiffs' counsel today asked for punitive damages in the millions of dollars," a company spokesman said. "The jury correctly refused that request. Even so, this award exceeds clear constitutional limits and we will ask the court to reduce it accordingly."

VW was represented by Sullivan & Cromwell LLP attorneys led by Robert J. Giuffra Jr.

Plaintiffs' attorneys are seeking a mistrial, arguing in a motion filed Monday that Senior U.S. District Judge Charles R. Breyer of San Francisco has made comments and rulings that were biased against them.

-- Craig Anderson