BMW fire victims lose damages suit as court rules recall resolved defects

BMW vehicle owners who filed a damages lawsuit against BMW Korea and its authorized dealerships over a series of car fires in 2018 have lost their case. The court ruled that the recall had resolved the design defect and that no remaining flaw could be established.

The Seoul Central District Court's Civil Division 30, presided over by Judge Kim Seok-beom, dismissed all claims brought by 63 vehicle owners on Thursday.

The litigation stems from a string of fires that broke out in BMW diesel vehicles in 2018. A joint public-private investigation team under the Ministry of Land, Infrastructure and Transport identified the cause as ignition triggered by cracks in the EGR (exhaust gas recirculation) cooler and coolant leaks. BMW responded with two rounds of recalls in July and November of that year and later carried out additional voluntary recalls.

The owners filed the lawsuit arguing that the EGR system installed in BMW vehicles had a design defect that made them prone to catching fire. During the trial, they contended that BMW Korea bore liability for illegal conduct — specifically, concealing or downplaying the existence of the defect and delaying the recall. They also sought compensation for financial losses, including a drop in used-car resale value and lost use of their vehicles, as well as damages for emotional distress stemming from exposure to fire risk and a decline in brand value.

The court rejected all of those arguments.

"The defect in the EGR system identified by the Ministry of Land, Infrastructure and Transport and the joint investigation team as the cause of the vehicle fires was corrected through the recall," the panel said. "The ministry confirmed that the defect had been remedied, and it is difficult to conclude that any structural defect unresolved by the recall remains." The court added that the fire rate among BMW vehicles after the recall was not higher than that of other vehicles.

The panel also declined to find BMW Korea liable for damages, noting that "it is difficult to conclude that BMW Korea, which is merely an importer and not the manufacturer, was aware of the design defect at the time of importing and selling the vehicles."

The court added that "the causes of individual fire incidents vary — ranging from user negligence to vehicle defects — and BMW Korea conducted the recall after confirming with its German headquarters the scope of vehicles with potential defects, so it cannot be said that BMW Korea concealed the issue or delayed corrective action."

The panel also dismissed in full the owners' claims for damages based on warranty liability and liability for defects under the sales contract.

"Warranty liability under the quality guarantee covers the obligation to repair defective parts free of charge and does not include monetary damages," the court said. "Since the recall by BMW Korea cured the vehicle defects, damages liability premised on the continued existence of a defect cannot be recognized either."