
A Normandy Park couple have sued Toyota in federal court, demanding that the company either take back the vehicle they just bought or reimburse them for its loss in value since the automaker's sudden-acceleration troubles became news.
Seattle Times staff reporter
A Normandy Park couple have sued Toyota in federal court, demanding that the company either take back the vehicle they just bought or reimburse them for its loss in value since the automaker's sudden-acceleration troubles became news.
The lawsuit alleges that the issues plaguing Toyota violate the state's Consumer Protection Act and amount to a breach of contract. The lawsuit is a proposed class action and, if certified by a federal judge, could apply to other Toyota owners in Washington with similar issues.
It claims more than 100 class members exist in Washington and that the damages in question will exceed $5 million.
The complaint alleges that Dana and Douglas Weller bought a 2009 RAV4 in September and a short time later received a recall notice and took the vehicle in for repairs.
"However, based on news reports, plaintiffs do not believe that Toyota knows what is causing acceleration. Plaintiffs tried to sell the car and were told its value is 20 percent less than what it was worth less than six months ago," the lawsuit alleges.
The lawsuit, filed by lawyer Steve Berman, references news stories saying that Toyotas have lost value as a result of the acceleration issues and says that "decrease reflects a real loss of value for used Toyotas."
The action comes as Toyota on Monday challenged the account of a California man, James Sikes, who claims his Prius sped out of control down a Southern California freeway last week.
"While a final report is not yet complete, there are strong indications that the driver's account of the event is inconsistent with the findings of the preliminary analysis," Toyota said in a statement Monday.
Toyota Motors Sales USA in Torrance, Calif., had no comment on the lawsuit filed in Seattle.
Toyota owners have filed at least 89 class-action lawsuits that, if successful, could cost the Japanese auto giant $3 billion or more, according to an Associated Press review of cases, legal precedent and interviews with experts.
Those estimates do not include potential payouts for wrongful-death and injury lawsuits, which could reach into the tens of millions each. Still, the sheer volume of cases involving U.S. Toyota owners claiming lost value — 6 million or more — could prove far more costly if they succeed, 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 it.
As Toyota continues to deal with the recalls and wavering public confidence in its vehicle safety, its biggest financial fight may be in the courtroom. A key decision could come at a March 25 hearing in San Diego, Calif., where a panel of federal judges will consider whether to consolidate the mushrooming cases into a single jurisdiction.
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.
Toyota has recalled millions of vehicles in the U.S. because of floor mats that can snag gas pedals or accelerators that can sometimes stick.
Information from The Associated Press is included in this report.
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