Lawyers Must ‘Apply’ Themselves To Get Lead Role In Toyota Litigation

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Posted on 5th May 2010 by Gordon Johnson in Uncategorized

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The Wall Street Journal Wednesday continued its coverage of the battle behind the Toyota accleration lawsuits, namely, which attorneys will take the lead and profit most from the cases. 

In a Page One story headlined “Lawyers Wrestle Over Driver’s Seat in Litigation Against Toyota,” The Journal reports that attorneys who represent plaintiffs against Toyota must filed applications with a judge in order to get the cherished spot heading up the ligitation for those who are suing. http://online.wsj.com/article/SB10001424052748704342604575222453681321376.html?mod=WSJ_WSJ_US_News_6

More than 75 federal lawsuits againt Toyota have been filed by more than 100 lawyers, according to The Journal.

 The cases have been consolidated and will be heard before Judge James Selna in Santa Ana, Calif. He is the one getting the applications for lead counsel for the plaintiffs.

The first hearing on the consolidated cases is coming up, on May 13, and dozens of lawyers are eager to see who Selna will choose to take charge of the plaintiffs’ cases.

Toyota’s liability in the suits, which stem from sometimes deadly acceleration problems in cars like the Camry, could add up to billions of dollars. And The Journal estimates that only a few of the plaintiffs’ attorneys will get most of $500 million in fees for their legal work.

One attorney filed an application that is 114 pages, while another submitted an application with 13 exhibits, The Journal reported.     

It’s a good inside story about the business of  law. 

 

 

Toyota Agrees To Pay $16.4 Million Fine For Hiding Safety Issues

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Posted on 19th April 2010 by Gordon Johnson in Uncategorized

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 Toyota has agreed to fork over $16.4 million to pay a fine, the largest government sanction against an automaker ever, for hiding information regarding its sudden-acceleration recall, federal officials said Monday. http://www.nytimes.com/2010/04/20/business/global/20toyota.html?hpw

 U.S. Transportation Secretary Ray LaHood announced the news about Toyota, which has not admitted any wrongdoing. But the automaker merely paying the fine levied by the National Highway Traffic Safety Administration doesn’t clear Toyota if any civil or criminal actions, according to The New York Times.

 The $16.4 million fine is the largest permitted under the law.

 Toyota released its own statement Monday. http://pressroom.toyota.com/pr/tms/toyota-motor-corporation-agrees-157093.aspx

 “We agreed to this settlement in order to avoid a protracted dispute and possible litigation, as well as to allow us to move forward fully-focused on the steps to strengthen our quality assurance operations,” the automaker said.

 “This will allow us to focus on delivering safe, reliable, high quality vehicles for our customers and responding to consumer feedback with honesty and integrity,” the statement said. “These have been core Toyota values for 70 years, and we pledge to make an even greater effort to adhere to this philosophy now and in the future.  We also welcome a new, more transparent chapter in our relationship with NHTSA, consistent with our commitments to Congress and the American people.”

 In a case of we-think-he-doeth-protest-too-much, Toyota went on.

  ”We regret that NHTSA tentatively concluded that they should seek a civil penalty. Toyota denies NHTSA’s allegation that it violated the Safety Act or its implementing regulations,” Toyota said in its statement.

 “We believe we made a good faith effort to investigate this condition and develop an appropriate counter-measure.  We have acknowledged that we could have done a better job of sharing relevant information within our global operations and outside the company, but we did not try to hide a defect to avoid dealing with a safety problem.

 Both the U.S. Department of Justice and the Securities and Exchange Commission are investigating Toyota over the sudden-acceleration recall

 Toyota knew about the acceleration problem and defective gas pedals for several months before ordering a recall in January.

 Toyota’s problems seem endless. Last Friday the company halted sales of its Lexus GX 460 after Consumer Reports magazine deemed the vehicle unsafe.

 And the automaker Friday said it would recall 600,000 Sienna minivans regarding a problem with a cable that holds a spare tire.

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 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.”

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’s Acceleration Problems Could Have Lead to Man’s Manslaughter Conviction, He Seeks Exam Of His Camry

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Posted on 4th March 2010 by Gordon Johnson in Uncategorized

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We’ve all heard of cases when an innocent man is freed from prison after someone steps forward, or new evidence appears, to clear the convicted one of his crime. A similar case has surfaced, but in this one an imprisoned man claims he should be released in light of Toyota’s admitted problem with the sudden acceleration of its some of its vehicles.

On the surface, it looks like the Toyota acceleration screw-up not only killed people, but also put a guiltless man in jail.

Koua Fong Lee is serving an eight-year term for a manslaughter conviction stemming from an accident that killed three people. Lee was driving a 1998 Toyota Camry, one of the vehicles recalled by the automaker, when the crash happened.

http://www.aolnews.com/nation/article/koua-fong-lee-claims-faulty-toyota-brakes-caused-deadly-accident/19380139?icid=main|main|dl1|link1|http%3A%2F%2Fwww.aolnews.com%2Fnation%2Farticle%2Fkoua-fong-lee-claims-faulty-toyota-brakes-caused-deadly-accident%2F19380139

Lee was 29 when the accident took place in June 2006. He was driving home from church in St. Paul, Minn., with his pregnant wife, daughter, father, brother and niece in his car.

Lee had maintained that his Camry suddenly accelerated. Obviously, a jury didn’t believe him. He crashed into several cars ahead of him, killing Javis Adams and his 10-year-old son, Javis Adams Jr. Another child, 6-year-old Devyn Bolton, also died.

During the trial, the prosecution maintained that Lee, a Laotian immigrant, has his foot on the gas when his car crashed. Two inspections done by mechanical engineers maintained that the car’s brakes were working when the crash took place.

Lee’s legal counsel plans to ask court approval to have his Camry from the accident, which is still in police custody, examined by experts who are familiar with the car’s acceleration problems