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Environment & Energy Report

Mercedes Gets New Look at Arbitration for Diesel-Cheat Claims

Jan. 13, 2020, 8:36 PM

Mercedes-Benz USA LLC and Daimler AG deserve another look at whether they can compel arbitration of some claims over alleged cheating devices in Mercedes BlueTEC “clean diesel” vehicles, the Third Circuit said.

The district court must determine which state’s law governs, and then apply the appropriate law to determine whether two named would-be class plaintiffs must arbitrate their claims, the U.S. Court of Appeals for the Third Circuit said in a non-precedential opinion.

Some 60 named plaintiffs brought an array of claims as a nationwide class for alleged violations of federal law, and as 33 subclasses for state-law violations. They...

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