Calif. Dealer Wins $15.8M in Toyota Lawsuit
An Orange County jury found in favor of Toyota dealer Roger Hogan, who sued the factory for fraud and breach of contract amid claims the manufacturer concealed safety defect data and retaliated against him for going public with his concerns.

A jury sided with Toyota dealer Roger Hogan, who pushed for a mechanical solution to an electric power system issue in the third-generation Prius, finding the automaker owes him $15.8 million for breach of contract.
Photo courtesy Toyota Motor Sales USA
SANTA ANA, Calif. — Southern California Toyota dealer Roger Hogan has prevailed in a lawsuit against the factory, which was ordered to pay $15.8 million for breach of contract with his Claremont and San Juan Capistrano stores.
Hogan sued the automaker in December 2017, alleging retaliation following his efforts to remedy a defect in the electric power systems of the 2010–’14-MY Toyota Prius. He also petitioned the National Highway Traffic Safety Administration to force the manufacturer to replace the systems’ inverters, claiming factory-issued software failed to properly address the issue, which could lead to overheating under normal driving conditions.
Hogan’s relationship with the factory became contentious in 2011, when he developed Autovation, a safety recall notification system he said improved upon the factory’s. Toyota opposed Hogan’s and other dealers’ use of Autovation, claiming it relied on proprietary data and, as a related and for-profit side business, the system represented a violation of Hogan’s dealer agreements.
Hogan said the system worked too well, costing the factory millions of dollars in warranty work it wanted no part of. In retaliation, the dealer said, his dealerships received the bare minimum allotment of inventory for a two-year period leading up to the lawsuit.
“This is very disheartening to me that this company has come to this point,” Hogan told City News Service. “It breaks my heart. … My philosophy is never put a customer in a car you wouldn’t put your own family in. There’s no amount of money in the world to compensate for a lost family member. It’s just unconscionable, so we drew a line in the sand and the jury found we were justified in our actions and that Toyota concealed certain material facts to us.”
The jury did not find Toyota liable for fraud, which could have incurred punitive damages well in excess of the $15.8 million award. In a statement, factory spokeswoman Christine Henley did not rule out an appeal.
“While we respect the jury’s decision, we remain confident the evidence and testimony clearly demonstrated that Toyota abided by its contractual obligations to the Hogan dealerships and has been transparent with its dealers, regulators and customers regarding the vehicle issues raised at trial. We will consider our options moving forward,” Henley said.
Originally posted on Auto Dealer Today
More Industry

Kia Closes Out Summer With a Bang
Its U.S. subsidiary broke multiple records in August, in part due to a surge of demand for hybrids models.
Read More →
Indiana Dealership Changes Hands
A 30-year-old Ford dealership in Indiana has a new owner and will soon be undergoing renovations to meet manufacturer requirements.
Read More →
Texas Dealership No Longer in the Family
The Ford store, a longtime cornerstone of the Houston market, is now part of one of the fastest-growing U.S. auto groups.
Read More →
Genesis Grows California Presence
The Cardinale Automotive Group opened its third Genesis rooftop in the Golden State, Genesis of San Bruno, a stand-alone dealership serving the San Francisco Bay Area.
Read More →
August Auto Sales a Mixed Bag
An early forecast shows strong business despite consumer hurdles, and hybrids are a big piece of their affordability coping strategy.
Read More →
EV Market Humming Along
July sales show steady growth as the segment stabilizes from last year’s artificial surge following pullback of federal support.
Read More →
Auto Loan Delinquency Rates Stabilize
Auto loans are a main driver of nonmortgage consumer debt, but delinquency rates stabilized in the second quarter across all credit risk tiers.
Read More →
EV Sales Recover in Q2
The EV sales roller coaster continues as numbers show improvement, but industry experts predict a year-over-year third-quarter decline and fourth-quarter jump.
Read More →
The Cheapest Hybrids to Fuel
The powertrain is increasing in popularity, in no small part due to its fuel economy. A new report lists the most efficient hybrids on the market.
Read More →
Hybrids and SUVs Gaining Ground
The most recent Kelley Blue Book Brand Watch found that only two nonluxury brands increased in shopper consideration, buoyed by their hybrid and SUV offerings.
Read More →