What does Supreme Court ruling mean for VW?

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Supreme Court Ruling Allows State Lawsuits Against Volkswagen Over Emissions Scandal

The US Supreme Court's decision to reject Volkswagen AG's appeals means the German automaker and its supplier, Robert Bosch LLC, can face lawsuits from state and local officials seeking damages related to the company's diesel emissions cheating scandal. This ruling permits Florida's Hillsborough County, Utah's Salt Lake County, and the state of Ohio to pursue claims under their respective local laws and regulations that prohibit tampering with vehicle emissions controls. Volkswagen had argued that only the federal government, under the Clean Air Act, had the authority to bring such claims, especially after reaching a more than US$20 billion settlement with the US Environmental Protection Agency (EPA).
State and Local Authorities Can Pursue Tampering Claims

The Supreme Court's refusal to hear the appeals filed by Volkswagen and Robert Bosch LLC upholds a lower court's decision. This allows entities like Hillsborough County in Florida and Salt Lake County in Utah to proceed with legal actions. These lawsuits specifically target the companies under local statutes that forbid altering vehicle emissions systems, accusing Volkswagen of deceiving the EPA and violating these specific local regulations.
Federal Government's Role and Clean Air Act Interpretation

Volkswagen Group of America Inc had based its defense on the argument that the Clean Air Act exclusively grants the federal government the power to litigate such emissions-related issues. The company highlighted its substantial settlement with the EPA, amounting to over US$20 billion, as evidence of its commitment to addressing the scandal. However, the Biden administration, when asked by the court for its stance, recommended against hearing the case, asserting that the Clean Air Act does not preclude states from enforcing their own laws.
Precedent Set by Lower Courts

In one significant case, Volkswagen sought to overturn a 2020 ruling from the 9th US Circuit Court of Appeals. This court had determined that the Clean Air Act did not preempt, or override, the ability of local jurisdictions to impose liability for tampering with vehicles after their sale. While the 9th Circuit did agree that Volkswagen could not be held liable under local anti-tampering laws for actions taken before a vehicle was sold, it acknowledged that its decision could expose the company to "staggering liability."
Similar Rulings in Other States

The legal challenges extend beyond the 9th Circuit's jurisdiction. Volkswagen was also attempting to appeal a June ruling by the Ohio Supreme Court. This state-level decision reached a conclusion similar to that of the 9th Circuit, indicating a pattern of judicial interpretation that permits state and local authorities to pursue claims against the automaker for emissions control tampering, even in light of federal settlements.

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What does Supreme Court ruling mean for VW?

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