Federal Court of Justice strengthens diesel plaintiffs with legal protection insurance

In the legal dispute between a motorhome buyer and his legal expenses insurance, the Federal Court of Justice ruled in favor of the consumer. The insurance company must bear the costs of a lawsuit against the vehicle manufacturer.

Anyone who wants to go to court and has legal expenses insurance needs a so-called coverage guarantee from the insurance company. The insurance company looks at the chances of success of the lawsuit before covering the costs of a legal dispute.

In this case, the buyer of a diesel motorhome with an illegal switch-off device wanted to sue the manufacturer. He turned to his legal expenses insurance to cover the costs of the lawsuit. But they refused to cover the costs. The reason given was that the diesel lawsuits had little chance of success. That was in 2021.

ECJ ruling changed the situation

In March 2023, however, the European Court of Justice issued a groundbreaking ruling on diesel, and it was very consumer-friendly. The chances of success of lawsuits suddenly improved significantly. The diesel buyer, who had legal protection insurance, sued his insurance company for reimbursement of costs. Now he has also been successful before the Federal Court of Justice.

Changed Prospects of success crucial

Karlsruhe says: If the insured person’s chances of legal success subsequently improve, he must be able to benefit from it. If he sues his legal protection insurance company for reimbursement of costs, the new, better legal situation must be taken into account in his favor.

In this case, it was not the time when the application was made to the insurance company, when the chances of success of the diesel lawsuit were not yet good, that was important. What was decisive was the situation after the new ECJ ruling. This already existed when the cost assumption was negotiated in court.