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Published by viorel on March 16th, 2010
in Business
Toyota 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 NortheasternUniversity
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.”