Volkswagen Taps Kenneth Feinberg to Develop Emissions Claims Program

Volkswagen has chosen Kenneth Feinberg, the attorney who handled GM’s ignition compensation claims program, to design and administer a claims resolution program for VW owners affected by the emissions scandal.

In a conference call today, Feinberg said the program is intended to divert claims of eligible vehicle owners from the court system into a system that will “provide remedies for those automobile owners.” The program will govern the rules, terms, and conditions for processing eligible claims, as well as determine what remedies are possible. He went on to say that he will “commence work immediately designing an independent claims process that will meet claimants’ needs.”

“We hope to have a claims program designed as expeditiously as possible,” Feinberg said. “In order to do so, we will need the input not only of Volkswagen, but also vehicle owners, their lawyers, and other interested parties.”

The high-profile attorney said he’d also like to get input from regulators like the Environmental Protection Agency (EPA) and California Air Resources Board (CARB). Those agencies continue to work with VW to develop a fix for the affected 2.0- and 3.0-liter diesel models. Feinberg will consult regulators as the program is developed.

“We want to see what the regulators have to say, so this process is just beginning,” Feinberg said. “What is an appropriate remedy that would give the car owner total peace? And that is a very, very challenging question which we certainly can’t answer yet.”

Some of the criteria that will have to be decided upon before the program begins include who’s eligible to file a claim, what the remedy is, and what the proof requirements are for filing. Feinberg says he expects around 500,000 claims for the program. For comparison, GM’s recently concluded ignition compensation program had 4,343 claims. While it’s unknown how many U.S. diesel owners will file claims, Feinberg points out that programs like this have had very high turnouts in the past. It’s not yet known if owners will have to give up their right to sue in order to file a claim, but the program is voluntary and open only to private vehicle owners.

With half a million potential claimants, you can bet this will cost VW a pretty penny. Still, Feinberg was hesitant to give an estimate on just how much.

“It’s very, very premature to come up with a cost of a program like this.”

Source: Volkswagen

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