T. Lemon

Volkswagen Aktiengesellschaft pleaded guilty to 60 charges under the Canadian Environmental Protection Act, 1999, including 58 counts of unlawfully importing vehicles that did not conform to prescribed vehicle emissions standards and two counts of providing misleading information.

The company admitted to installing defeat devices in approximately 128,000 diesel vehicles imported into Canada between 2008 and 2015, which allowed the vehicles to pass emissions testing while emitting substantially higher nitrogen oxide levels during normal driving conditions.

The court imposed a fine of $196,500,000, the largest environmental fine in Canadian history at that time, reflecting the severity of the deliberate deception, the environmental and health risks created, and the need for deterrence and denunciation.

The court dismissed an application by three individuals (two environmentalists and a former Volkswagen vehicle owner) seeking to participate as parties in the criminal prosecution of Volkswagen Aktiengesellschaft for violations of the Canadian Environmental Protection Act.

The applicants sought to present victim impact statements and make submissions regarding restitution, fines, and sentencing.

The court held that the applicants lacked standing to participate as parties, as the Public Prosecution Service of Canada has carriage of the prosecution and speaks on behalf of the public.

The court noted that while victim impact statements are permitted under the Criminal Code, there is no statutory foundation for victims to become quasi-parties to criminal proceedings.