P&A Providers & Administrators
MenuMENU
SearchSEARCH

Toyota Must Face Class-Action Suits Over Vehicles' Lost Value, Judge Rules

December 2, 2010
3 min to read



Toyota Motor Corp., the automaker that recalled more than 8 million vehicles related to sudden acceleration problems, must face class-action lawsuits filed by car owners claiming economic losses, a U.S. judge ruled.


The car owners’ lawyers provided sufficient evidence to allow their cases to go forward, U.S. District Judge James V. Selna in Santa Ana, California, said yesterday, making final a tentative ruling issued Nov. 19. Toyota sought dismissal of the suits, contending the plaintiffs failed to plead specific losses or identify an actual defect, reported Bloomberg.

Ad Loading...


“It is true that plaintiffs do not generally allege the precise dollar value of their losses, but that level of specificity is not required at the pleadings state,” Selna said in yesterday’s ruling. “The court is convinced that a safety consideration as fundamental as whether a car is able to stop when the brakes are applied is material to consumers.”


The economic-loss lawsuits, combined for pretrial filings and rulings before Selna, claim Toyota drove down the value of vehicles by failing to fix or disclose defects that triggered unintended acceleration. Federal court lawsuits claiming death or injury caused by such episodes are also combined in the Santa Ana court.


In September 2009, Toyota announced a recall of 3.8 million Toyota and Lexus vehicles, saying floor mats might jam accelerator pedals. The company, based in Toyota City, Japan, later recalled vehicles over the pedals themselves.


‘Merits’ Unaddressed


“Importantly, this ruling does not address the merits of plaintiffs’ allegations and does not consider any evidence,” Celeste Migliore, a Toyota spokeswoman, said yesterday in an e- mailed statement.

Ad Loading...


“At this early stage, this analysis by the court requires a basic assumption that the plaintiffs’ allegations are true, even though they are unproven,” she said. “The burden is now squarely on plaintiffs’ counsel to prove their allegations and Toyota is confident that no such proof exists.”


The lawsuits are “based on a wholly unsubstantiated claim that there is a defect in Toyota’s electronic throttle control system that causes unintended acceleration,” Migliore said. “No credible scientific theory or proof has been advanced to support the allegations in their consolidated complaint.”


Selna rejected Toyota’s request to dismiss a claim that the company knew of a defect in the vehicles’ electronic throttle- control system and concealed it from consumers.


‘Sufficiently Alleged’


“Plaintiffs have sufficiently alleged that Toyota had exclusive knowledge of material facts not known to plaintiffs and actively concealed those facts,” Selna wrote.

Ad Loading...


Toyota also had said the consumers couldn’t sue for losses on vehicles that hadn’t experienced a sudden, unintended acceleration defect.


“The court agrees with plaintiffs that experiencing an SUA defect is not required for standing,” Selna said.


Selna dismissed the consumers’ claim of unjust enrichment, finding it wasn’t a proper cause of action under California law. He also dismissed some warranty claims, including one alleging that Toyota’s advertising created an express warranty.


“We are pleased that the Court found that specific categories of plaintiffs’ claims for express warranty based upon alleged design defect, unjust enrichment and revocation of acceptance, as currently pled, should be dismissed,” Migliore said.


Steve W. Berman, co-lead counsel for consumers in the case, said in a statement that he looked forward to moving forward with a case that is very important to Toyota owners.

Ad Loading...


“We believe -- and intend to prove -- that Toyota knew the gravity of this issue, and failed to warn consumers, or take action to address the serious problem of unintended acceleration.”


The cases are combined as In re Toyota Motor Corp. Unintended Acceleration Marketing, Sales Practices and Products Liability Litigation, 8:10-ml-02151, U.S. District Court, Central District of California (Santa Ana).


More Industry

Orange electric vehicle charging station.
Industry•by Lauren Lawrence•October 20, 2026

Charger Network Growth Slows

Despite a projected increase in public EV chargers in 2026, charging infrastructure remains a top concern for consumers as the gap between the most and least EV-friendly places remains substantial.

Read More →
Fan of $100 bills atop a white envelope
Industry•by Hannah Mitchell•October 13, 2026

Lenders, Consumers Take on More Auto Loan Risk

September records loosened credit access the most in over a decade as buyers took advantage of the conditions to afford trading, though loan applications fell.

Read More →
Red type R Honda civic parked on road.
Industry•by Lauren Lawrence•October 13, 2026

Next-Gen Hybrids in Sight

Dealerships can expect to see revamped hybrids from Honda next year as the company rolls out a new system and model lineup.

Read More →
Ad Loading...
Dodge ram emblem on orange vehicle exterior
Industry•by Hannah Mitchell•October 6, 2026

Gem State Stores Change Hands

A larger auto group founded in the industry’s early years sold two franchises to a neighbor group that's on a growth spurt.

Read More →
Graphic of model car driving on fake road.
Industry•by Lauren Lawrence•October 6, 2026

Charging In Motion

Honda has been researching wireless in-motion charging for electric vehicles since 2025, and new technology developments have put it a step closer to a final product.

Read More →
front grill of a Ford truck with blue Ford emblem
Industry•by Lauren Lawrence•September 30, 2026

Twin Cities Stores Sell

Minnesota-based Walser Automotive Group made what it called the most significant acquisition in its history with a three-rooftop deal in Minneapolis.

Read More →
Ad Loading...
Diesel engine on a production line in a factory
Industry•by Hannah Mitchell•September 29, 2026

U.S. Auto Sales Still Below Prepandemic Levels

Mobility Global industry observers don’t expect the market to return to the higher volumes that became routine before Covid but to stay well below its potential.

Read More →
Front of red tesla car.
Industry•by Lauren Lawrence•September 22, 2026

The Powertrain Shift

Electric-vehicle owners are backpedaling, according to new data, with product availability driving many to shift back to gas-powered engines.

Read More →
White BMW SUV driving on road.
Industry•by Hannah Mitchell•September 15, 2026

Achromatic Autos

The shades that dominate the U.S. car market don’t call attention to themselves, though grayscale may have plateaued after a 30-year upswing, research shows.

Read More →
Ad Loading...
Line of eclipse SUVs in parking lot.
Industry•by Lauren Lawrence•September 15, 2026

Used-Vehicle Affordability Worsens

Listing prices in August defied seasonal trends, rising above $27,000 for the second time this year.

Read More →