Associated Press
James Sikes, 61, recounts his experience driving a 2008 Toyota Prius that sped out of control Monday.
Pedal problems, suits accelerate for Toyota
Associated Press
Toyota Motor Corp. scrambled to deal with its latest public-relations pickle as its customers took concerns over sinking vehicle values to court.
Spokesman Brian Lyons said the automaker is sending three technicians to investigate a Prius that sped out of control on a California freeway Monday. Federal investigators are also on the case.
James Sikes, 61, told authorities he was driving on Interstate 8 outside San Diego when the accelerator on his 2008 Prius became stuck. That model was covered by a recall involving floor mats that can catch the accelerator, but Sikes said the pedal jammed and was not trapped under the mat.
Sikes dialed 911 about 1:30 p.m. A police cruiser driven by California Highway Patrol officer Todd Neibert pulled alongside the Prius, which reached 94 mph, and the officer told Sikes over a loudspeaker to push the brake pedal to the floor and apply the emergency brake. That, coupled with a steep incline on the freeway, slowed the car to about 50 mph. Sikes said he then shut off the engine and the car coasted to a stop. Neibert then moved his car in front of the Prius to block it.
“There’s no collision, so our investigation’s done,” officer Brian Pennings said. “There’s no crime. ... We’re just glad it ended safely.”
Meanwhile, an Associated Press review found at least 89 class-action lawsuits over lost vehicle values, which could cost Toyota billions of dollars.
That doesn’t include potential payouts for wrongful death and injury lawsuits, which could reach in the tens of millions each. Still, the volume of cases involving U.S. Toyota owners claiming lost value – 6 million or more – could prove far more costly, 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 those cases.”
A key decision could come at a March 25 hearing in San Diego, 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 either trial or settlement.
Toyota owners suing the company contend their vehicles have dropped in value because of the recalls and that Toyota knew all along about safety problems but concealed them from buyers. They point to evidence such as Kelley Blue Book’s decision this month to lower the resale value of recalled Toyotas an average of 3.5 percent, ranging from $300 less for a Corolla to $750 less for a Sequoia.
The lawsuits started appearing on state and federal dockets last fall, when Toyota began recalling about 8 million vehicles worldwide because of persistent complaints about sudden unintended acceleration. The National Highway Traffic Safety Administration reports that 52 people have died in accelerator-related crashes.
The AP conducted an extensive review of federal court filings and uncovered 89 class-action lawsuits filed nationwide as of Monday. Toyota attorneys said last week in a court filing that the company is aware of 82 such cases.
One leading attorney in the class-action effort, Northeastern University law professor Tim Howard, said the number of owners claiming economic damages because of the recalls could reach 6 million. If each were awarded $500 – likely a conservative estimate – Toyota would have to fork over $3 billion in economic loss damages alone.
Toyota could end up facing an even bigger payout if a judge decides attorneys’ fees should be added to any plaintiffs’ award.