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Case against Volkswagen over emissions temporarily halted

The case returns to the High Court next month
The case returns to the High Court next month

A claim for damages against Volkswagen arising out of the emissions controversy last year has been temporarily halted by the High Court.

Lawyers for Volkswagen were this afternoon given permission to bring a High Court challenge against the jurisdiction of the District Court in Castlebar to hear the case.

Volkswagen claims there was a "absolute inversion of fair procedures" and "a number of fundamental flaws" in the case at Castlebar District Court. Its lawyers said Judge Mary Devins had already decided on the issue of jurisdiction without a proper hearing.

The case was due to resume at Castlebar District Court tomorrow. But this afternoon Volkswagen was granted leave to seek a judicial review in the High Court.

The court also granted an order prohibiting the case from going ahead at Castlebar District Court until the judicial review is complete. The case returns to the High Court next month.

Last year it emerged that Volkswagen had installed software designed to trick emissions testers in the United States. Thousands of vehicles were recalled by the company in Ireland.

Eithne Higgins from Croghan, Boyle, Co Roscommon had taken a case for damages against Volkswagen.

Senior Counsel Paul Gardiner told the court that Volkswagen wants all cases arising from the emissions scandal to be heard by the District Court in Dublin.

Moves were already in train to have the cases placed before one judge for case management, he said.

Mr Gardiner said the District Court in Castlebar had no jurisdiction to hear the case because the defendants were based in Dublin and Germany.

The fact that the car was bought from a second-hand dealer in Ballyhaunis did not mean the case could be heard in Castlebar, he said.

He also said the plaintiff in the case, Ms Higgins, would not suffer any prejudice if the case was halted pending a judicial review.

He said her claim for damages centred on any potential loss she might suffer in the future.

She did not intend to trade in her Seat car until 2017, he said.

He said her claim for damages was for an amount not yet determined and included such claims as amounts she might be found liable to have underpaid in VRT or car tax and damages for increased motor tax into the future.

He said the District Court judge had "announced" at a previous hearing that she had already decided on the issue of jurisdiction.

Mr Gardiner said if she had made such a ruling, she did so without hearing any evidence and without a formal motion on jurisdiction being put before the court.

Judge Anthony Barr said he was satisfied that Volkswagen had raised an arguable case and granted leave to seek a judicial review.

He also said it was appropriate to grant an order prohibiting the case from proceeding at the District Court until the High Court decides whether or not it has jurisdiction to hear the case.