'Electric Vehicle Fire' Mercedes-Benz Owners Begin Class Action Lawsuit... "False Advertising" vs "Abstract Claims"

[Financial News] A class action lawsuit has been initiated by Mercedes-Benz electric vehicle owners against the headquarters of Mercedes-Benz in connection with the electric vehicle fire accident in the underground parking lot of an apartment in Cheongna, Incheon, last August. The owners' side pointed out that the use of batteries different from those advertised constitutes 'false advertising', while the Mercedes-Benz side countered that the "content is abstract and vague claims".
The Seoul Central District Court's Civil Division 904, presided over by Judge Seo Hyeong-joo, held the first hearing on the afternoon of the 27th for the damages lawsuit filed by 24 owners of Mercedes-Benz EQE and EQS electric vehicles against the German headquarters of Mercedes-Benz, the importer Mercedes-Benz Korea, and the official dealer Hansung Motors. The plaintiffs are demanding compensation of 10 million won per person. They are not the owners affected by the 'Cheongna Fire'.
Attorney Ha Jong-seon of the law firm Naru, representing the owners, stated, "The vehicle contains Chinese-made Farasis batteries, but it was concealed and claimed that batteries from the world's number one battery manufacturer, CATL, were used, which constitutes fraud under civil law." The use of Farasis products, unlike other company batteries made with fire-resistant materials, suggests an intent to deceive, he argued.
Furthermore, "In response to questions about fire concerns, Vice President Starzynski of Mercedes-Benz stated there were no concerns about the batteries, which is false advertising due to defects in the Farasis batteries," he claimed, demanding compensation and the cancellation of sales and lease contracts. Specific core defects include △ lack of design to stop thermal transfer in two cells △ non-use of fire-resistant materials and insufficient compartmentalization △ absence of a warning system 5 minutes before a fire △ defect where the BMS (Battery Management System) does not operate while parked △ lack of a protective plate under the battery.
Additionally, they argued that Mercedes-Benz knew about the defects or became aware of them due to the Incheon parking lot fire but did not conduct a 'vehicle recall', thus concealing the defects, and demanded punitive damages of 350 million won, five times the battery pack replacement cost of 70 million won, under the Automobile Management Act.
In response, the defendants countered, "The content is abstract and vague claims, and no evidence has been presented." Particularly regarding the '5-minute warning' feature, they argued, "It is a standard not present in our country, and it was not available when this car was released, so it is questionable whether it can be applied."
The court requested the plaintiffs to "clarify what claims are being made against each defendant." This is due to the various issues involved, such as cancellation of sales and lease contracts, violation of the Advertising Act, and punitive damages, making it unclear what responsibility is being attributed to each defendant. 
On this day, the plaintiffs applied for a fact inquiry into the status of the Fair Trade Commission's investigation and also requested the submission of documents related to the investigation records of the police task force that investigated the cause of the fire at that time, which the court accepted. The court plans to discuss the application for appraisal and witness application at a subsequent hearing. The next hearing is scheduled for July 22.
Previously, in August last year, a fire occurred in a Mercedes-Benz EQE350 vehicle parked in the underground parking lot of an apartment in Cheongna International City, Incheon, resulting in 87 vehicles being completely burned and 783 vehicles being scorched. The National Forensic Service announced in October last year that there was a possibility that the battery cell was damaged due to external impact, causing the fire, and subsequently, the owners filed successive class actions.

scottchoi15@fnnews.com Choi Eun-sol Reporter