Mercedes-Benz Class Action

Mercedes-Benz Class Action

The Claim

Piper Alderman has filed a class action in the Supreme Court of Victoria on instructions from Krisoula El-Helou, the plaintiff, against Mercedes-Benz Australia/Pacific Pty Ltd, and its two German parent companies, which manufactured and supplied diesel vehicles in Australia (together, Mercedes-Benz) (the El-Helou Proceeding).

The plaintiff commenced the proceeding on behalf of persons, referred to as ‘group members’, who acquired an equitable or legal interest in a Mercedes-Benz diesel vehicle in Australia (including on hire purchase) between 1 January 2008 and 22 January 2024 (Relevant Period), which contained a “defeat device” (Affected Vehicle).

The plaintiff alleges that during the Relevant Period, Mercedes-Benz manufactured and supplied the Affected Vehicles to her and to group members and that the vehicles emitted nitrogen oxides (NOx) in excess of the permitted regulatory levels. The plaintiff seeks compensation from Mercedes-Benz for losses suffered, on the basis that Mercedes-Benz misrepresented that the Affected Vehicles complied with regulatory requirements.

A further summary of the class action is available in the Group Proceeding Summary Statement accessible below.

Other Mercedes Class Action

In addition to this class action, there was another class action on foot against Mercedes-Benz Australia/Pacific Pty Ltd and one of its German parent companies, Mercedes-Benz Group AG, in the Supreme Court of Victoria. That class action was brought by plaintiffs Paul Wawryk and Craig Stubbings and was commenced on behalf of group members who “purchased or leased or otherwise acquired a legal interest” in certain Mercedes-Benz vehicles (being engine models OM 607, OM 622, OM 626, OM 640, OM 651) between 2009 and 22 November 2022 (the Wawryk Proceeding).

Status of the Proceeding

On 21 October 2024, the Honourable Justice Nichols made court orders to the effect that  the El-Helou Proceeding will continue, while the Wawryk Proceeding has been permanently stayed (i.e. will no longer proceed).

Piper Alderman and Gerard Malouf Partners, the solicitors for the plaintiffs in the Wawryk Proceeding, will now work together in prosecuting the El-Helou Proceeding. Piper Alderman will remain the solicitors on the record in the El-Helou Proceedings, and Gerard Malouf Partners will act as our Agent.

Group members who had previously registered for the Wawryk Proceeding may now register with Piper Alderman using the form below.

The parties to the El-Helou Proceeding are currently conferring regarding a number of preliminary matters.

Funding

The class action is funded by an international litigation funder, Woodsford Litigation Funding 29 LLP. More details about the funding is available in the Funding Information Summary Statement accessible below.

Court Documents

1. Amended Statement of Claim 
2. Group Proceeding Summary Statement
3. Funding Information Summary Statement

Am I eligible?

You may be eligible as a group member in the class action if:

1. you acquired an interest in a Mercedes-Benz diesel vehicle;
2. you acquired the interest between 1 January 2008 and 22 January 2024;
3. your vehicle:
   • a. is of the same engine type as the Plaintiff (see schedule of vehicles with the same engine type as the Plaintiff linked here); or
   • b. is otherwise fitted with a “defeat device”.

Selling your Affected Vehicle may affect your claim to damages

If you currently own an Affected Vehicle and you sell it before the conclusion of the Mercedes Class Action, your entitlement to certain monetary damages (called “Reduction-in-Value Damages”, explained below) will most likely be lost, and therefore your overall entitlement to damages (if any) will potentially be significantly reduced.

The Applicants allege that the sale of the Affected Vehicles did not comply with the consumer guarantees in the Australian Consumer Law (Law), and so Mercedes must pay Group Members damages.

The Applicants are asking the Court to order Isuzu to pay Group Members two types of damages:

• Reduction in Value Damages (i.e. damages for the reduction in value of goods as a result of the manufacturer’s failure to comply with the Law); and
• Compensatory Damages (i.e. damages to compensate for any actual losses suffered by a consumer as a result of the manufacturer’s failure to comply with the Law).

In cases such as the Mercedes Class Action, Reduction in Value damages may be significantly higher than any available Compensatory Damages.

Reduction in Value Damages will only be available to consumers in a class action like the Mercedes Class Action if, at the time a Court delivers a judgment (i.e. makes its decision after the conclusion of a hearing), the consumer still retains title to the relevant vehicle.

Accordingly, if you choose to sell or dispose of your Affected Vehicle, you may lose some or all of the money that you might otherwise have received from a judgment or settlement in the Mercedes Class Action.

Group Members will need to take their own financial and legal advice to ensure that any decision they make is right for them.

For more information, Group Members may wish to review the High Court of Australia’s decisions in Williams v Toyota Motor Corporation Australia Ltd [2024] HCA 38 (here) and Capic v Ford Motor Company of Australia Pty Ltd [2024] HCA 39 (here) from which the information above has been derived.

Registering your details

If you meet the eligibility criteria set out above, we invite you to register for this class action.

If your vehicle is not of the same engine type as the Plaintiff’s vehicle, you may not be aware if your vehicle is fitted with a defeat device. In those circumstances we invite you to register if you satisfy the first two criteria above.