litigation risk

Dieselgate and the Disclosure Problem: What Mass Litigation Teaches CLM Teams

Adira EditorialLegal AI desk4 min read
Editorial illustration for Dieselgate and the Disclosure Problem: What Mass Litigation Teaches CLM Teams

A Ruling That Is Not Quite Over

The High Court's liability judgment in the long-running Dieselgate litigation went largely in favour of the car manufacturers, but claimant solicitors have already described a "compelling case" for an appeal. Whatever the appellate outcome, the litigation has now run for years, consumed enormous disclosure exercises, and forced defendants to reconstruct precisely what was known, when it was known, and what was written down about it. That reconstruction burden is, in practice, a contract and document management problem before it becomes a legal argument.

For in-house legal teams and the law firms that advise them, the more durable lesson from Dieselgate is not about emissions calibration. It is about whether organisations can actually find, read, and explain their own documents under pressure.

Why Disclosure Is a CLM Problem in Disguise

Mass litigation of this kind depends heavily on the disclosure process. Defendants must locate agreements, technical specifications, supplier contracts, internal approvals, and correspondence that may span decades, multiple jurisdictions, and several corporate restructurings. In many organisations, those documents live in siloed repositories, inboxes, or shared drives with inconsistent naming conventions.

A modern contract lifecycle management platform changes that calculus considerably. When contracts are ingested, structured, and searchable from day one, the forensic work of assembling a disclosure bundle becomes a query rather than an archaeological dig. Metadata is preserved. Version histories are traceable. Obligations, warranties, and representations are tagged against the clauses that created them.

This is not a speculative benefit. Litigation teams regularly report that the most time-consuming and expensive phase of large commercial disputes is not the hearing itself but the preceding effort to understand what the organisation actually agreed to and with whom.

Reading Contracts from Your Own Side

One subtlety that Dieselgate illustrates is the importance of reading contracts from the perspective of the party who signed them, not from a neutral or adversarial vantage point. Claimant and defendant lawyers will read the same clause and arrive at opposite conclusions about what it obligates. In-house teams need to know, before litigation threatens, what their own documents say when read in their favour and what vulnerabilities exist when read against them.

Adira is built on precisely this principle. Rather than offering a view from nowhere, it analyses contracts from the client's own side, surfacing risks and entitlements as they would appear to the party that negotiated and signed the document. That orientation matters enormously when a dispute is brewing. Knowing that a supplier warranty clause is ambiguous, or that a technical specification was incorporated by reference in a way that could be read narrowly, allows legal teams to seek clarification or strengthen their position before a claim lands.

Jurisdiction Matters When Appeals Loom

The Dieselgate defendants relied, in part, on arguments rooted in German and EU type-approval law. The High Court had to assess English private law claims against a technical regulatory backdrop that spanned multiple legal systems. This kind of jurisdictional layering is increasingly common in cross-border commercial contracts, and it creates genuine analytical complexity when disputes arise.

A CLM platform that understands the law of the jurisdiction it is working in, rather than applying a generic global template, is better placed to flag when a clause will behave differently depending on governing law, or when a warranty acceptable under English law creates unexpected exposure under another system. For multinationals managing supplier contracts across Europe, that jurisdictional awareness is not a luxury. It is a basic requirement of competent risk management.

What In-House Teams Should Do Now

The prospect of an appeal in Dieselgate means the uncertainty continues for parties across the automotive supply chain. But the broader message for any organisation with significant contractual exposure is straightforward.

First, audit your document estate. If you cannot locate and contextualise your key contracts quickly, you are not ready for a serious dispute. Second, ensure that your CLM system is capturing not just executed agreements but the representations, specifications, and communications that surround them. Third, think about jurisdiction from the outset of contracting, not retrospectively when a claim is filed.

Litigation of this scale and duration is rare. The disclosure and reconstruction problems it exposes are not. The organisations that emerge from major disputes with their position intact are usually those that treated contract management as a strategic function rather than an administrative one.

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