Supreme Court seeks U.S. government views on Volkswagen emissions

The U.S. Supreme Court on Monday asked President Joe Biden’s administration to weigh in on whether Volkswagen AG can be sued by regional governments in Florida and Utah for damages emerging from the automaker’s diesel emissions cheating scandal.

The justices are considering whether to hear an appeal by Volkswagen and Robert Bosch LLC of a lower court ruling enabling Florida’s Hillsborough County and Utah’s Salt Lake County to seek to hold the companies accountable under local laws and regulations prohibiting tampering with vehicle emissions controls.

The automaker could face damages in these cases and potentially others brought by other local jurisdictions. Daimler AG and Fiat Chrysler are facing similar claims as well.

Volkswagen has argued that under the U.S. Clean Air Act, only the federal government can pursue such claims. The automaker noted that it already has reached a settlement with the U.S. Environmental Protection Agency (EPA).

The counties have argued that the automaker deceived the EPA – and in doing so also breached the local laws.