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US federal panel consolidates lawsuits against Toyota

By Bernard Hibbitts (editor) and University of Pittsburgh School of Law students.

[JURIST] The US Judicial Panel on Multi-District Litigation (MDL) on Friday consolidated more than 150 pending lawsuits against Toyota Motor Corporation and transferred them to the US District Court for the Central District of California. The MDL panel said that transferring the cases to California to be heard by Judge James Selna would make the litigation process more streamlined. Each of the actions currently before the Panel asserts economic damages on behalf of certain classes and/or individuals stemming from an alleged defect in certain Toyota vehicles that causes sudden, unintended acceleration. The cases involve common questions of fact. No doubt, centralization under Section 1407 will eliminate duplicative discovery; prevent inconsistent pretrial rulings, including with respect to class certification; and conserve the resources of the parties, their counsel, and the judiciary.Other transfer options included US District Courts in the Eastern District of Louisiana, and the Middle District of Florida, where large numbers of cases against Toyota were filed. The National Highway Traffic Safety Administration (NHTSA) said earlier this week that that it would seek a record $16.375 million penalty against Toyota for a four month delay in waiting to notify the agency about problems with allegedly "sticky" gas pedals. Toyota has two weeks to appeal the fine. Toyota has been under federal scrutiny since December and has recalled approximately eight million cars. Last month, California's Orange County District Attorney filed a consumer protection lawsuit against Toyota alleging that the company knowingly sold vehicles with acceleration defects.

Full post as published by JURIST - The Paper Chase on April 10, 2010 (boomark / email).