- In a major victory for Toyota, the federal judge overseeing the multidistrict litigation over alleged acceleration defects in Toyota vehicles has drastically limited the number of claims against the automaker.
- The ruling says that only California car owners — not those in other states — can take advantage of the state's favorable consumer-protection laws.
- Toyota told Inside Line that approximately 70 percent of the economic-loss cases in the litigation were originally filed outside of California.
SANTA ANA, Calif. — In a major victory for Toyota, the federal judge overseeing the multidistrict litigation over alleged acceleration defects in Toyota vehicles has drastically limited the number of claims against the automaker.
The ruling says that only California car owners — not those in other states — can take advantage of the state's favorable consumer-protection laws. The action drastically cuts the size of a potential class action against Toyota filed on behalf of consumers and calls into question speculation that the Toyota litigation could cost the automaker upward of $3 billion if it lost the federal case.
Toyota told Inside Line that approximately 70 percent of the economic-loss claims in the litigation were originally filed outside of California.
U.S. District Judge James V. Selna ruled on June 8 that consumers who relied on Toyota's guarantees of reliability and safety should not be allowed to pursue economic damages under California's state law if they lived or purchased their vehicles in another state. California laws could conflict with those of other states, said the ruling. In addition, California's statute of limitations for the economic-loss claims is more generous than many other states.
The suits stem from a recall of more than 8 million vehicles worldwide, mainly related to complaints of sudden acceleration. Toyota has used a NASA and National Highway Traffic Safety Administration study to argue that the lawsuits are without merit.
On May 13, Selna refused the automaker's request to dismiss the litigation, saying that Toyota owners had alleged enough facts establishing overpayment, loss in value or loss in usefulness with regard to the vehicles in question.
Toyota said it was gratified about the June 8 ruling.
"We're gratified the court has recognized that allowing a few handpicked plaintiffs to set the course for customers throughout the United States through this kind of 'procedural engineering' would go against established law, diminish Toyota's substantive rights and undermine the purposes of these multidistrict proceedings," said Toyota spokesperson Celeste Migliore in an e-mailed response to an Inside Line query. "Importantly, approximately 70 percent of the economic-loss cases in this litigation were originally filed outside of California, and many of those states would not allow the claims brought by customers whose vehicles have never manifested a defect."
Another hearing in the Toyota case is scheduled for today. The June 8 ruling did not pertain to the 100 personal injury and wrongful death cases filed against Toyota in the multidistrict litigation, noted The National Law Journal.
Inside Line says: Score one for Toyota, but the battle is far from over.
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speedpass says:
07:17 AM, 06/13/2011
Honestly, I know plenty of people who have Toyotas, especially later model years. Not one of them reported a problem with their vehicles, except for having to go the the dealership to get a fix due to a recall. Two family members drive a Prius and a Tundra, and they are pretty happy with them. I do agree and was disappointed that Toyota took so long to come forward. Hopefully they would not repeat this mistake ever again, as should any manufacturer. I'm sure there are some real actual claims of death and injuries. But shame on those who took advantage of the situation, and are hurting both the victims and Toyota just to get a buck. Funny how 70% of the claims came from outside of California. Damn lawyers! Nevermind those economic losses, how about the loss you take when you pay for those lawyers.
dgmail says:
03:21 AM, 06/13/2011
Anyone watch the toyota recall fiasco in front of congress?
I did. Yes. The whole thing.
The ass kissing was so evident to toyota exec's, it made me puke and be embarassed to be an American.
tbone85 says:
01:16 PM, 06/12/2011
Akula, what does any of this have to do with GM or the government? We've spent $ 1 trillion in defense and "aid" to the Middle East to prop up the oil market. Where is your condemnation of that investment? Selective memory at work.
jeremy_c says:
10:11 AM, 06/12/2011
dgmail - We have no proof of whether Toyota paid off politicians BUT Mercedes has already plead guilty to global bribery as found by the US Department of Justice. http://www.news.com.au/business/luxury-carmaker-daimler-in-global-bribery-scandal/story-e6frfm1i-1225848882384
Will you ever set foot in a Mercedes showroom?
mieden says:
06:25 AM, 06/12/2011
Finally. The whole thing was a mockery. Anyone who knows how engine management systems work can tell you it wasnt the ETAs malfunctioning, but the drivers...
laibach says:
01:11 PM, 06/11/2011
Edmunds erroneously writes that Toyota's recalls were "mainly related to complaints of sudden acceleration." In fact, the complaints poured in AFTER the recalls. The Nitsa/NASA studies spend many pages proving the tail wagged the dog.
smallfield says:
12:25 PM, 06/11/2011
@j33p
"People where just looking for a free ride" - some got a faster one than they wanted, now want a paid ride
akula1 says:
10:47 PM, 06/10/2011
@dgmail. Your post = L-O-L
Shame on GM, Chrysler and the White House for lying about paying back those loans or that we'll ever recoup the losses for those bailouts. Shame on dgmail for being a shill.
It's nice that all tax payers already made payments on cars they don't own. Though If you do decide to buy one you only have to pay twice. That's a bargain by domestic accounting standards.
Oh, thank GM for pushing for a dollar per gallon increase in gas taxes.
"GM and Chrysler. Taking you for a ride" or "Chevy runs deep. Into your pockets"
dgmail says:
08:20 PM, 06/10/2011
I'm sure Toyota spent plenty of money paying politicians off on this one.
Probably more than what they paid them to cover up all of the engine sludge problems of the past twenty years.
Most of us wont set foot in a Toyota let alone one of their showrooms anymore, and for good reason.
Dirty politics Toyota.
Shame on you.
vikasdesai says:
08:18 PM, 06/10/2011
stick with what got you there toyota, keep building quality cars, as long as you stick with your morals all this will subside....i'm not the type that goes with big companies but the truth needs to come out. This is the most over litginous country in the world, people always want something for nothing and no one can ever be held accountable for their actions. the fact is that when you mess a large corporation like toyota the people that take the fall are not multi=millionaires, they have the means to protect themselves, its the little guy the middle management the factory worker, the plant manager. All this unintended acceleration bullpoop screwed a decent company.