Toyota proposes economic loss settlement worth up to $1.4 billion over unintended acceleration claims
Filed under: Government/Legal , Recalls , Safety , Toyota , Earnings/Financials Toyota announced a proposal today worth over a billion dollars to settle civil claims of economic loss related to alleged cases of sudden unintended acceleration in its vehicles from 2009-2010. Estimates place the cost of the settlement between $1.1 billion and $1.4 billion, which would, according to lawyers for the plaintiffs, make it the largest of its type in US history. US District Judge James Selna, who is presiding over the case in California, will review Toyota’s settlement proposal as early as Friday. The details of the settlement, as given by Toyota in an official statement and obtained from a press release issued by lawyers for the plaintiffs, are as follows. Toyota will install brake override systems in all 3.25 million vehicles subjected to the floor mat entrapment recall . A fund of $250 million will compensate former Toyota owners who sold their cars from September 1, 2009 through December 31, 2010 for lost value. Another fund of $250 million will compensate current owners whose vehicles are not eligible for the free brake override system. All 16 million current Toyota owners will be eligible for a customer care plan that warrants certain parts allegedly related to unintended acceleration for three to 10 years. Education grants valued at $30 million will be made to independent academic institutions to further study auto safety and enhance driver education. As mentioned above, the settlement relates only to claims of economic loss, and thus does not cover wrongful death claims, the first trail for which is slated to begin in February 2013.
Filed under: Government/Legal , Toyota Even though Toyota’s unintended acceleration debacle is as ancient as Jurassic fleas for most of us, the California Distric Court of Judge James Selna is still chainsawing through a massive docket of claims. Judge Selna had been considering whether plaintiffs in California, New York and Florida could sue Toyota for economic loss related to the claims of unintended accleraton – the plaintiffs wanted Toyota to reimburse them for the alleged decline in value of their cars. According to a report in Bloomberg , Selna issued a final ruling that the New York and Florida plaintiffs can’t sue for economic loss if they didn’t experience unintended acceleration, or if they didn’t experience “a measurable loss” when selling their cars. California plaintiffs, on the other hand, can sue even if there was no unintended acceleration event or perceived depreciation. The ruling could remove millions of owners from of plaintiffs and make an economic-loss class action lawsuit more difficult, but plaintiffs attorneys have said they’ll try to get the cases tried in New York and Florida courts. However, the ruling doesn’t affect other plaintiffs suing over the same issue in other states. This doesn’t affect the unintended accleration cases, though; three litmus-test trials are scheduled for next year. Judge dismisses most Toyota economic-loss claims from New York, Florida originally appeared on Autoblog on Mon, 07 May 2012 16:26:00 EST. Please see our terms for use of feeds . Permalink