Toyota Customers Sue for Refunds Over Acceleration

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businessToyota Motor Corp. was sued in Washington state by customers demanding refunds for cars being recalled over defects that include sudden acceleration.

 

Toyota was accused of breach of warranty, sale of unsafe vehicles and unjust enrichment in the complaint, filed today in federal court in Seattle. The complaint, which seeks class- action, or group status, is the first against Toyota to seek full refunds, lawyers for the car owners said.

 

“When we talked with Toyota owners, they all voiced the same desire -- to drive the car back to the lot, hand them the keys and pick up a check,” lawyer Steve Berman said in a statement. “We think the law allows for exactly that solution, and we are asking the courts to make it happen.”

 

Toyota, the world’s biggest automaker, has recalled more than 8 million vehicles sold under its own name and that of its Lexus luxury division because of sudden, unintended acceleration and other complaints. At least 118 class-action suits have been filed in the U.S., with 36 individual lawsuits claiming deaths and injuries caused by vehicles accelerating out of control.

 

A group of 29 law firms today added federal racketeering charges to each of their lawsuits, accusing Toyota of mail and electronic fraud. Ohio lawyer Stanley Chesley filed a similar complaint in February.

 

Under the Racketeer Influenced and Corrupt Organizations Act, people or organizations that engage in racketeering can be found liable for treble damages, boosting total potential damages Toyota might have to pay to more than $10 billion, according to a statement from the Attorneys Toyota Action Consortium.

 

‘Hide the Truth’

 

“The conspiracy to hide the truth has gone on for nearly a decade,” said Tim Howard, professor of law and policy at Northeastern University who coordinated the legal team that sued the tobacco industry in Florida in the 1990s. The tobacco suits resulted in a $20 billion settlement with Florida and a national settlement of $250 billion. “Toyota continues to use mail, email, television, radio and the Internet in furtherance of this fraud.”

 

Zoe Zeigler, a spokeswoman for Toyota City, Japan-based Toyota, said the automaker doesn’t comment on pending litigation.

 

Dana Clark Weller of Normandy Park, Washington, bought a 2009 Toyota RAV4 sport-utility vehicle in September and shortly afterward received a recall notice, according to the Washington complaint. She tried to sell the car and was told its value dropped 20 percent in six months, according to the complaint.

 

Diminished Value

 

The Washington customers seek compensation for the diminished value of their vehicles if the court refuses to order Toyota to pay full refunds in exchange for the return of the vehicles.

 

“Because of the sudden acceleration defect, they are not safe to drive and thus not fit for ordinary purpose,” the customers said. “The defective accelerator pedals and brakes have caused the vehicles to depreciate in value.”

Source: businessweek.com

 

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