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ARTICLE · 12 DECEMBER 2019

Supreme Court Of Canada Allows Environmental Class Action Seeking Only Punitive Damages To Proceed

The Supreme Court of Canada recently heard and dismissed an appeal in the "dieselgate" pollution class action case, Volkswagen Group Canada Inc. v. Association québécoise de lutte contre la pollution atmosphérique.

CanadaLitigation, Mediation & Arbitration

The Supreme Court of Canada recently heard and dismissed an appeal in the "dieselgate" pollution class action case, Volkswagen Group Canada Inc. v. Association québécoise de lutte contre la pollution atmosphérique. The Supreme Court allowed a $300 million class action against Volkswagen to proceed where the plaintiffs would not be claiming (or proving) damages for direct injury suffered by any person. The plaintiffs, led by a public interest environmental advocacy group, can move forward with their claim in respect of environmental wrongdoing, even though it only seeks punitive damages.

Background

The case arises from the scandal known as "dieselgate", whereby certain Volkswagen and Audi diesel vehicles were secretly equipped with devices to falsify emissions test results. As a result, the vehicles in question, manufactured between 2009 and 2015 and estimated to include 100,000 vehicles sold in Canada, produced emissions that exceeded applicable Canadian

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