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Spanish court orders VW to pay compensation to buyer of polluting Audi

Posted On: Oct. 27, 2016 9:48 AM CST

Spanish court orders VW to pay compensation to buyer of polluting Audi

(Reuters) — A Spanish court on Wednesday for the first time ruled in favor of a buyer of a Volkswagen A.G. car with altered emissions software, ordering two of the German firm's local units to pay a €5,000 ($5,457) fine to the car's owner.

The judge said the owner of an Audi Q5, bought in 2013, had wanted compensation and a new car after finding out last year when the VW diesel scandal erupted it had software that allowed it to cheat emissions tests.

Courts in Spain have ruled in favor of Volkswagen in five previous cases related to the emissions scandal, and Wednesday's sentence could open the door to a wave of new consumer lawsuits.

Spanish consumer organization OCU called for other people with affected cars in Spain to join more than 5,500 others in filing a class action lawsuit against VW.

The Spanish court in the city of Valladolid said the fine imposed on Valladolid Wagen and Volkswagen Audi Espana was equivalent to 10% of the car's value. The companies will also have to repair the car, the court said.

VW admitted in September 2015 to installing secret software in its diesel cars to improve their test performance. Since then, the company has been hit with enormous fines worldwide, and on Tuesday a U.S. judge approved a $14.7 billion settlement between the carmaker and U.S. regulators.

A source at Volkswagen Audi Espana said the company would appeal the ruling.

Spain's High Court said in October 2015 it had begun an investigation into VW cars in Spain.