Court to Decide Arbitrability of Mercedes Emission Claims Under Applicable State Law

PHILADELPHIA — A federal appeals court has remanded to district court the question of arbitrability of claims accusing Mercedes-Benz of deceiving customers into paying more for “clean diesel” cars that allegedly emit pollutants well beyond the government standard.

In a Jan. 10 opinion, the 3rd Circuit U.S. Court of Appeals directed the trial court to consider the manufacturer defendants’ third-party beneficiary and equitable estoppel arguments under applicable state law.

A group of individuals who purchased Mercedes BlueTEC diesel vehicles filed a putative class action in the U.S. District Court for the District of New Jersey, alleging that the “earth …