Federal Court of Justice: Legal dispute over VW comparisons must be negotiated

The Higher Regional Court (OLG) Celle must once again deal with Volkswagen’s liability comparison with the former board members Martin Winterkorn and Rupert Stadler in connection with the diesel scandal. The Federal Court of Justice (BGH) gave the legal dispute over the approval of the VW general meeting for the comparisons to Celle, where negotiations and decided again.

In June 2021, Volkswagen, with the ex-board members, had concluded liability compared to possible claims for damages and coverage comparisons related to so-called D&O insurers. These “Directors-and-Officers” insurance companies can take out companies for their managers and thus protect them from liability claims. The total amount amounted to a good 288 million euros. Winterkorn itself paid 11.2 million euros, ex-Audi boss Stadler 4.1 million euros.

Paneles had decided differently

The VW general meeting approved these comparisons in July 2021 with a large majority. But capital investment protection associations considered the decisions to be void and went to court. The Hanover Regional Court initially dismissed her lawsuit, and the OLG Celle also rejected the appeal on it. The plaintiffs made a revision so that the case landed at the top German civil court in Karlsruhe. (Az. II ZR 154/23)

The revision was now successful in significant points, as the BGH announced. The decision on the approval of the comparison of cover with the D&O insurers was void due to a violation of the law. Among other things, the court criticized that certain information was lacking in the agenda when the Annual General Meeting was convened. With regard to the liability comparisons with the former board members, the procedure was referred back to the OLG.

VW wants to complete agreements

Volkswagen AG is with the other parties of the comparative agreements on the possible consequences of the BGH judgment and the resulting next steps in discussions, a spokesman for the car manufacturer said. “As a precaution, it has been agreed in particular with the insurers that any claims for recovery will not be asserted for the time being and that the discussions will be continued after analysis of the judgment now available.”

With regard to the liability comparisons with the former board members, the BGH did not object to the content of the comparisons. According to Volkswagen, the key reasons that spoke in 2021 for the end of the comparisons still apply today. “Volkswagen’s intention is to conclude the agreements made in 2021,” said the spokesman.