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March 10, 2010
As Toyota staggers, lawyers step forward
Standing on the Houston courthouse steps last week, lawyer Mark Lanier called a news conference largely to mark his legal turf and to try for a stake in what's expected to be multibillion-dollar litigation against Toyota Motor Corp.
In the weeks since the Japanese carmaker's January recall of millions of cars to fix a mechanical problem with the accelerators, lawyers in Texas and around the country have smelled the corporate blood in the water. Dozens of class action lawsuits have been filed in recent weeks on behalf of Toyota owners for lost car value and mental anguish.
"Lawyers are jockeying for a place in this. This is a mass tort. Toyota is in for billions of dollars and for a number of years," Lanier said.
Toyota owners claiming that extensive safety recalls are causing the value of their vehicles to plummet have filed at least 89 class action lawsuits that could cost the Japanese auto giant $3 billion or more, according to an Associated Press review of cases, legal precedent and interviews with experts.
Dozens of other lawsuits have been filed by those who blame injury or death on acceleration problems, with three death cases filed in the Houston area alone. And lawsuits on behalf of shareholders and dealerships are expected next.
Still, the sheer volume of cases involving U.S. Toyota owners claiming lost value — 6 million or more — could prove far more costly, adding up to losses in the billions for the automaker.
Such class action lawsuits "are more scary for Toyota than the cases where people actually got injured," said Tom Baker, a University of Pennsylvania law professor. "A super-big injury case would be $20 million. But you could have millions of individual car owners who could (each) be owed $1,000. If I were Toyota, I'd be more worried about those cases."
A federal multidistrict litigation panel has set a March 25 hearing to start the process to pick a federal judge who will oversee Toyota lawsuits all over the country. That judge will appoint lawyers to a steering committee, usually based on the cases they have, their experience and the resources they can contribute.
After that, a judge will decide whether all claims filed by Toyota owners nationwide can be combined in a single legal action — known as "certifying a class" — and whether the claims have enough merit to move toward trial or settlement.
Attorneys "who stake a claim now will more likely get the leadership positions with the plaintiffs' steering committees that will be set up to handle consolidated discovery," Lanier said. "Leading the charge best ensures the charge going the direction one thinks best."
Toyota owners suing the company contend their vehicles have dropped in value because of the recalls and that Toyota knew all along about safety problems but concealed them from buyers. They point to evidence such as Kelley Blue Book's decision this month to lower the resale value of recalled Toyotas an average of 3.5 percent.
In some of the lawsuits, Toyota owners seek additional damages because they're afraid to drive what they call "defective and dangerous" cars, while still others claim insurance premiums will likely go up.
The lawsuits started appearing on state and federal dockets last fall, when Toyota began recalling some 8 million vehicles worldwide because of persistent complaints about sudden unintended acceleration.
Toyota has recalled 5.6 million vehicles in the U.S. because of problems caused by what it says are accelerator pedals that become sticky or get trapped under floor mats. Another 437,000 Prius models have been recalled worldwide for what Toyota says is an antilock-braking glitch.
The vast majority of lawsuits claiming economic loss stem from the accelerator problems, and many contend the company's effort to fix floor mats or accelerator pedals are insufficient. Dozens of lawsuits claim Toyota has ignored problems with its electronic throttle system.
The National Highway Traffic Safety Administration reports that 52 people have died in accelerator-related crashes. Separately, the agency is looking into claims from more than 60 Toyota owners that their vehicles continue to surge forward unexpectedly despite having their vehicles repaired.
Toyota has denied that its electronic throttle is to blame. A phone call to Toyota's public relations office was not returned for this story, though corporate representatives generally have not commented on pending litigation.
Sometimes, personal injury expenses can be overwhelming, and contacting a lawyer becomes necessary.
Dealing with insurance companies can sometimes be difficult. If you are considering an injury case, contact the Houston Personal injury lawyers of the Stephens Law Firm at 713-224-0000
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