Judge Sets May 13 Hearing On Federal Toyota Lawsuits

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Posted on 16th April 2010 by Gordon Johnson in Uncategorized

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The judge who is presiding over the nearly 100 federal lawsuits against Toyota, which are being consolidated, has set a May 13 hearing on the case, according to The Wall Street Journal. http://online.wsj.com/article/SB10001424052702304628704575186230332752408.html?mod=WSJ_auto_IndustryCollection

Federal Judge James Selna scheduled the initial hearing in the matter for his courtroom in Santa Ana, Calif. Dozens of attorneys for plaintiffs in the suits are expected to be in court for that session.

Some of the suits stem from deaths and injuries allegedly caused by the sudden acceleration of Toyota vehicles, while others seek compensation for the loss of value of their Toyotas because of the acceleration problems.

At this point, Selena has opted to consolidate the wrongful death and injury suits with the consumer suits, according to The Journal.

Lawyers are eagerly waiting to see who Selna will choose to lead the arguments in the cases against Toyota. The Journal estimated that anywhere from $200 million to $500 million in attorneys’ fees will be generated by the cases, and that only a few lawyers – the lead lawyers – will share in that money.

For the period leading up to the first hearing, Selna has picked three lawyers as temporary leads: Elizabeth Cabraser of San Francisco; Steve Berman of Seattle; and Marc Seltzer of Los Angeles.

The lead lawyer for Toyota is Cari Dawson.

Also this week, Toyota suspended sales of its 2010 Lexus GX 460 SUV in both the Unites States and other countries after Consumer Reports magazine deemed the vehicle unsafe.  

Toyota said it would also do safety tests not only the GX 460, but all of its SUVs. And the U.S. National Highway Traffic Safety Administration also said it would run its own safety tests of the GX 460.   http://online.wsj.com/article/SB10001424052702304510004575185983714141448.html?mod=WSJ_auto_IndustryCollection

 http://www.nytimes.com/2010/04/16/business/16toyota.html?ref=business

 

Toyota Suspends Sales of Lexus SUV After Consumer Reports Magazine Damns It As Unsafe

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Posted on 14th April 2010 by Gordon Johnson in Uncategorized

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Can it get any worse for Toyota?

After Consumer Reports magazine said the vehicle was dangerous, Toyota Tuesday halted sales of its 2010 Lexus GX 460 sport utility vehicle. http://www.nytimes.com/2010/04/14/business/14auto.html?ref=todayspaper

 In fact, Toyota’s Lexus unit suspended sales of the SUV model just hours after the magazine warned that the vehicle had a handling problem that could lead to rollovers and “serious injury or death,” according to The New York Times.

 “We are taking the situation with the GX 460 very seriously and are determined to identify and correct the issue Consumer Reports identified,” Mark S. Templin, the Lexus group vice president and general manager, said in a statement. http://pressroom.toyota.com/pr/tms/lexus/lexus-statement-regarding-consumer-156934.aspx

 “Lexus’ extensive vehicle testing provides a good indication of how our vehicles perform and we are confident that the GX meets our high safety standards,” Templin said. “Our engineering teams are vigorously testing the GX using Consumer Reports’ specific parameters to identify how we can make the GX’s performance even better.”

 In its own statement, the National Highway Traffic Safety Administration said it was talking to both Lexus and Consumer Reports about the problem that the magazine uncovered, according to The Times.

 Consumer Reports gave the Lexus GX 460 a “don’t buy” rating, which is apparently very rare. The magazine said that the handling problem surfaces if a driver eases up on the gas pedal while driving quickly through a sharp turn. That action causes the rear end of the SUV to slide, to fishtail, toward the outside of the turn, according to Consumer Reports. 

 In other dozens of other SUVs tested by Consumer Reports, electronic stability control systems detected and halted such slides. But with the Lexus GX 460, its stability control didn’t stop the slide until the SUV was almost sideways, Consumer Reports told The Times. 

 It’s no wonder that Toyota moved quickly on the Lexus situation. The auto maker faces a $16.4 million fine from federal safety authorities for failing to act swiftly regarding complaints about the sudden acceleration of cars like the Camry.

Toyota Stalled In Recall of U.S. Vehicles, Documents Say

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Posted on 12th April 2010 by Gordon Johnson in Uncategorized

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Toyota’s public relations nightmare continued Monday, as stories broke about the car maker delaying its recall of vehicles in the United States, even after the company had knowledge of sudden-acceleration problems that allegedly lead to dozens of deaths.

Various news outlets, including the Associated Press and The New York Times on Page One, cited internal Toyota documents that became public last week.

In one particularly damning comment, one Toyota official in January told his colleagues that he had to break some bad news, namely that some of the company’s car models “have a tendency for mechanical failure in accelerator pedals.” http://www.nytimes.com/2010/04/12/business/12gap.html?hp

The message went on to say, “The time to hide on this one is over. We need to come clean.”

But there was a lag, three days later, before Toyota finally folded to public pressure and recalled millions of vehicle.

Basically, the documents show that Toyota stalled in taking any action to remedy the acceleration problem, and that it even took steps quicker in Europe and Canada than it did in the United States.

Last week the federal transportation authority announced that it was fining Toyota the stiffest penalty allowed, $16.4 million, over the recall related to the sticking accelerators.

Several days after that last week, federal safety officials warned Toyota that they might impose a second penalty against the car maker. That fine would stem from Toyota’s handling of the recall of 2.3 million cars and trucks with accelerator pedals that could get stuck. http://www.latimes.com/business/la-fi-toyota-fine10-2010apr10,0,1294645.story

Federal Toyota Suits Consolidated Before California Judge

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Posted on 10th April 2010 by Gordon Johnson in Uncategorized

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 The litigation against Toyota over its sudden-acceleration problem took another step forward Friday, with more than 150 federal suits being consolidated before one federal judge in Santa Ana, Calif. http://www.latimes.com/business/la-fi-toyota-lawsuits10-2010apr10,0,6050180.story

 So even as federal safety officials are investigating and fining Toyota over the acceleration issue and the auto maker’s handling of the matter, the lawsuits against Toyota will proceed before federal Judge James Selna.

 Selna’s Santa Anna, Calif., courtroom will become the center for determining personal damages in the pending suits.  Santa Anna is only about 30 miles from Toyota’s U.S. headquarters.

 On Friday the U.S. Judicial Panel on Multidistrict Litigation decided to give allow 100 suits that are seeking class action status, along with 50 personal injury cases, to be litigated before one judge, Selna, The Los Angeles Times reported.

 “Centralization will create convenience for the parties and witnesses and will promote the more just and efficient conduct of this litigation,” the chairman of the federal panel, Judge John Heyburn II, wrote in an order Friday.

 But this only applies to federal lawsuits pending against Toyota, which has recalled more than 8 million vehicles due to the sudden acceleration problem. Numerous suits have also been filed in state courts across the nation.

 Last month dozens of attorneys presented arguments about whether the many lawsuits should be consolidated or handled individually.

 Judge Selna’s resume includes presiding over complex corporate, and he’ll his hands full in the dozens of Toyota lawsuits, according to The Wall Street Journal. http://online.wsj.com/article/SB10001424052702304222504575174180229421268.html?mod=WSJ_business_whatsNews

For example, he adjudicated a patent infringement case between Quaalcom and Broadcom, finding that Quaalcom had violated a court order by marketing computer chips that used Broadcom patented technology – without paying the royalties due.

Judge Selna plans to pick a committee of plaintiffs’ attorneys to be lead counsel on the consolidated cases, with more than 100 lawyers jockeying for those spots, The Journal reported.  

$16.4 Million Fine Against Toyota Seems Far Too Puny

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Posted on 8th April 2010 by Gordon Johnson in Uncategorized

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The U.S. Transportation Department’s decision to fine Toyota $16.4 million, the largest penalty permitted, made front page news in a number of newspapers Tuesday, including The New York Times http://www.nytimes.com/2010/04/06/business/06toyota.html?ref=todayspaper

and The Washington Post.

http://www.washingtonpost.com/wp-dyn/content/article/2010/04/05/AR2010040503200.html

 We understand that the government, namely the transportation department and the National Highway Traffic Safety Administration (NHTSA), legally could not impose a stiffer fine. But it seems like a pretty tiny snap on the wrist to only penalize an auto giant like Toyota that amount. Its crumbs to a company like Toyota, over the foolish handling of a fatal problem that has lead to dozens of deaths and the recall of millions of vehicles.

 And we’re not the only ones to think that.

 Safety Research and Strategies (SRS) agreed with our “slap-in-the-wrist” assessment, but added “we’re glad to see any government agency get back their regulatory mojo after eight moribund years of the Bush administration.” http://www.safetyresearch.net/2010/04/06/16-4-million-reasons-why-it-ain%E2%80%99t-over-yet-for-toyota-sua/

 The government levied the penalty against Toyota for not promptly notifying government safety officials about mishaps involving it cars’ accelerator pedals. That problem has allegedly led to the sudden accelerations of cars, allegedly causing accidents that have killed dozens of people and prompted several hundred lawsuits. 

 “We now have proof that Toyota failed to live up to its legal obligations,” Transportation Secretary Ray LaHood said in a prepared statement. “Worse yet, they knowingly hid a dangerous defect for months from U.S. officials and did not take action to protect millions of drivers and their families.”  

SRS raised some questions of its own.

“People need to remember: as NHTSA and Toyota have both acknowledged, sticking accelerator pedals have nothing to do with Sudden Unintended Acceleration,” SRS president Sean Kane said on the group’s Web site. “In fact, owners have complained to NHTSA about experiencing SUA incidents after getting the sticky accelerator pedal recall fix.”

The SRA also had this to say about the fine, which Toyota has two weeks to contest.

“We’re also very interested in seeing if NHTSA will take Toyota back to the woodshed for failing to initiate its floor mat recall in a timely fashion,” the SRS said on its site. “But let’s keep our eyes on the prize, folks: we need Toyota to identify the other root causes that can’t be explained by floor mats and driver error. Punishing Toyota doesn’t do much to resolve the financial woes and real safety concerns of drivers who are stuck with these vehicles.”

Regulators Bring In NASA Scientists For Toyota Probe

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Posted on 31st March 2010 by Gordon Johnson in Uncategorized

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Pulling out all the stops in their probe, auto-safety regulators will literally turn to help from rocket scientists to study what’s caused the sudden, and deadly, acceleration of Toyota cars. http://news.yahoo.com/s/nm/20100330/bs_nm/us_toyota;_ylt=Avj2ZyGXDibrcZycWm8RhC9h24cA;_ylu=X3oDMTJ1ajNmY2JtBGFzc2V0A25tLzIwMTAwMzMwL3VzX3RveW90YQRjY29kZQNtb3N0cG9wdWxhcgRjcG9zAzcEcG9zAzcEc2VjA3luX3RvcF9zdG9yaWVzBHNsawNnb3Z0YXNraW5nbmE

NASA space and aeronautics engineers are being called in to help examine Touota’s electronic throttles, to find out if they are the cause of the sudden auto accelerations.

“We are determined to get to the bottom of unintended acceleration,” U.S. Transportation Secretary Ray LaHood told Reuters.

The National Highway Traffic Safety Administration, NHTSA, part of the Transportation Department, is doing an investigation into Toyota’s throttles. As part of that probe, nine NASA scientists who are experts in electronics, electromagnetic interference, software and difficult problem solving will be lending a hand.

The NHTSA investigation is slated to be done by the summer, and then it will be decided whether to go forward with a formal probe.

In Japan Tuesday, Toyota president Akio Toyoda convened a committee with 50 members that will study safety problems.

The Mechanics and Legal Logistics of the Toyota Lawsuits

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Posted on 26th March 2010 by Gordon Johnson in Uncategorized

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The litigation stemming from Toyota’s sudden-acceleration debacle continues to move forward, with the auto maker arguing Thursday that the 200 lawsuits stemming from the problem should be consolidated. http://www.google.com/hostednews/ap/article/ALeqM5imJf-xAYjZsiJx5KJN87X2aebzZQD9ELQ9N81

Toyota’s head attorney, Carl Dawson of Georgia, plead the car manufacturer’s case for having the personal injury and wrongful death suits, as well as any potential class action suits, merged.

“All these cases have common issues,” Dawson said. “There will be significant overlap.”

Dawson also argued that the suits should be handled in a California court, since Toyota’s U.S. headquarters is in Los Angeles. He argued his points before the U.S. Judicial Panel on Multidistrict Litigation in San Diego.

The hearing was a circus of lawyers, as The Wall Street Journal reported Friday. Two dozen attorneys had only two minutes each to make statement to the judicial panel, arguing that the cases be handled in venues such as Louisiana, for example. The Journal compared the proceedings to speed-dating. http://online.wsj.com/article/SB10001424052748704094104575143690736388422.html?mod=WSJ_hpp_LEFTWhatsNewsCollection “At stake are huge fees that the only a few lawyers will collect in the suits against Toyota…Lawyers based where the lawsuits are heard will have a good shot at taking the lead position in the cases,” The Journal wrote.

There have been 140 suits filed in federal courts against Toyota, and many more are pending in state courts.

Friday The Los Angeles Times offered an updated tally of the number of deaths now blamed on the acceleration of Toyota vehicles. It is more than 100, according to The Times, twice the number reported two months ago. http://www.latimes.com/business/la-fi-toyota-deaths26-2010mar26,0,5790258.story

Lawyers Role in Toyota Lawsuits

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Posted on 16th March 2010 by Gordon Johnson in Uncategorized

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With the Toyota acceleration debacle in the headline every day, the new twist on the story is writing about auto-safety litigation and the role attorneys are playing in the suits that have been filed against the Japanese auto maker.

On Monday The Wall Street Journal did a piece headlined “Lawyers Vie For Lead Roles In Toyota Lawsuits” http://online.wsj.com/article/SB10001424052748703457104575121571198599134.html?KEYWORDS=toyota+lawsuits as well as a blog on the topic. http://blogs.wsj.com/law/2010/03/15/pick-me-toyota-plaintiffs-lawyers-to-plead-their-cases-in-san-diego/tab/print/

There are so many cases pending against Toyota, with more to be filed, that The Journal suggested that it’s likely that many of the claims in the cases will be consolidated.

There will be a hearing held March 25 by the U.S. Judicial Panel for Multidistrict Litigation, which will be responsible for consolidating cases, in San Diego federal court.

Arsenault is conducting a “Toyota Symposium” right before the Judicial Panel hearing. One of the panels will be on “Liability Issues: The Mechanical vs. Electronic Debate.”

Over the weekend there was more news about Toyota litigation, as the Orange County District Attorney’s Office filed suit against the auto maker. The suit charges that Toyota knowingly sold thousands of hundreds of thousands of cars with acceleration problems, http://www.latimes.com/business/la-fi-oc-toyota13-2010mar13,0,4331092.story

The Los Angeles Times also wrote a fascinating history of auto-safety litigation, which credits lawsuits with leading to life-saving innovations to cars over the past 50 years. Those improvements include gas tanks that’s won’t explode if a car is hit in the rear, and dashboards and steering columns that absorb a body’s impact. http://www.latimes.com/business/la-fi-toyota-litigate14-2010mar14,0,2005316.story

Toyota Now Faces Problems With Priuses

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Posted on 11th March 2010 by Gordon Johnson in Uncategorized

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Toyota’s woes never seem to end, with two incidents involving Priuses suddenly accelerating making national headlines Wednesday.

In one instance, a man in California was able to get help from a California Highway Patrolman when his 2008 Prius sped up to 90 mph as he was driving on a highway in San Diego. The police officer coached the man, who then was able to stop the vehicle. http://online.wsj.com/article/SB10001424052748704784904575111503873150166.html?mod=WSJ_hpp_sections_business And in a second incident, a 2005 Prius crashed into a stone wall in Harrison. N.Y. In that car, the floor mat had been tied to the seat, most likely by the dealer, so the mat can be blamed for the accident. http://www.nytimes.com/2010/03/10/business/10toyota.html?ref=business

Toyota has already done massive recalls of its Camry and Lexus lines, after vehicles suddenly accelerated, allegedly causing accidents that killed at least 50 people.

The automaker has also recalled its 2004 to 2009 Priuses, but that was just to deal with the issue of floor mats making the accelerator stick.

Did no one at Toyoto think to check their other models?

Worse-Case Scenario Suit Filed Against Toyota Over Sudden Accelerations

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Posted on 6th March 2010 by Gordon Johnson in Uncategorized

Toyota is already being sued over accidents caused by the sudden-acceleration of its cars, with some of those lawsuits seeking class action status. But there is one suit that the automaker will likely have a particularly tough time defending itself against, according to The Wall Street Journal.

http://online.wsj.com/article/SB10001424052748703862704575099861335382140.html?mod=WSJ-auto-IndustryCollection#articleTabs_article

That product liability and negligence suit stems from the case of an off-duty California Highway Patrol officer who was killed in an accident, along with his family, in San Diego when the Lexus he was driving suddenly sped out of control, accelerating to 120 miles an hour.

But this accident is different than the others in several important ways. First, the Lexus being driven by the off-duty officer, Mark Saylor, was a loaner car from a dealership. Secondly, the customer who had used the loaner car before Sawyer had told the dealership that its accelerator had gotten stuck.

According to The Journal, Saylor’s fatal crash was a particularly disturbing one. After accelerating, the Lexus hit a Ford Explorer, crashed through a fence, flipped over and then exploded in flames. Sawyer and his three passengers were killed.

The Journal points out that in some of the other litigation pending against Toyota over the acceleration issue, there are mitigating factors that could get the car maker off the hook. One driver had epilepsy, and Toyota argued a seizure could have caused his crash. Another driver was old and had parked near a cliff. A third had a stroke.

Saylor’s survivors filed their lawsuit this month in Superior Court in San Diego.

So far federal officials say that there have been 52 deaths linked to the acceleration of their Toyotas. Some experts suggested that each suit filed from the case could result in Toyota having to pay millions of dollars in damages.

Toyota has recalled more than 8 million cars so far.

 

Attorney Gordon Johnson Chair Traumatic Brain Injury Litigation Group, American Association of Justice

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©Attorney Gordon S. Johnson, Jr. 2010

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