Legal News

Economic-loss class against Toyota faces challenges ahead

By Richard Binder

As plaintiffs' lawyers prepare to file their consolidated class action on behalf of Toyota consumers, they face an obstacle that has prevented similar claims from advancing in the past: Class members didn't actually suffer physical injuries.

The class members assert that they suffered economic injuries because their vehicles declined in value following recalls tied to sudden acceleration problems. Courts have rejected similar argument in class actions brought under products liability laws, according to plaintiffs' lawyers who spoke during a March conference on the Toyota litigation.

Those "no injury" rulings could influence how the lead plaintiffs' attorneys in the multidistrict litigation (MDL) against Toyota Motor Corp. craft their first consolidated class action complaint, which is due on Aug. 2.

"This issue is stacked against the plaintiffs," said Amanda Williams, a lawyer at Minneapolis-based Gustafson Gluek who addressed the matter during the conference. Her firm has filed three cases against Toyota. "I think we have good arguments, but it's not going to be easy."

Full story on NLJ.com.

Full post as published by Legal Pad | LA on June 21, 2010 (boomark / email).