Toyota is in trouble. Perhaps you knew that, but trouble is nothing new to them. It used to be, but now it’s like a warm blanket…a very scratchy and irritating warm blanket. Ever since January of last year when they recalled 8.5 million vehicles across their whole fleet including Lexus, they have attracted problems like a giant feather duster.
A year later, they have since raised their recall total to nearly 12 million cars and trucks. This is on top of the largest fines in the history of all things with four wheels that go vroom, vroom. The reason for this is the defect called “sudden acceleration,” where the vehicle accelerates to over 100 mph without warning or the ability to brake or shift. Toyota blames the problem on floor mats causing the pedal to stick. Experts now believe this explanation to be divorced from reality and that it is a serious (and expensive) mechanical problem.
Insurance companies don’t really care what causes the problem. They’re more concerned with paying for the car after it’s plowed into a wall and injured or killed the driver. You see, all of those fines we mentioned above…well, those came about because investigators found that Toyota knew about the problem for up to 2 years prior to the problem and insurance companies paid out for accidents that were in fact Toyota’s fault. Oooops.
Car Insurance Subrogation
We brought you the story first of State Farm filing the first shot off of the bow of Toyota. They Allstate followed. Now, seven more auto insurance corporations are following. The legal action has created a new wave of United States civil litigation rising against Toyota as the Japanese carmaker fights to move past a car safety crisis spurred by a staggering number of complaints of the company’s vehicles accelerating uncontrollably.
The investigation by the National Highway Traffic Safety Administration is still ongoing as it looks into claims that roughly 89 accident fatalities since 2000 that may have resulted from sudden acceleration in Toyota and luxury Lexus vehicles.
Due to these incidents, the automaker could also face up to $10 billion in possible civil liability in the United States courts from wrongful-death, personal injury, and consumer fraud claims resulting from complaints about unintended acceleration.
Included in the most recent lawsuits are:
- Motorists Mutual Insurance Company
- National Surety Corporation
- American Automobile Insurance Company
- Ameriprise Insurance Company
- American Hardware Mutual Insurance Company
- Fireman’s Fund Insurance Company
- IDS Property Casualty Insurance Company
Collectively, the seven car insurance companies are requesting minimum compensatory damages of $188,000, a pittance compared to the $3 million of losses requested by Allstate Insurance in its suit filed in October on behalf of itself and affiliated companies.
Toyota Recall Lawyers Represent Victims
The insurers’ lawsuits, initiated in three different filings, arrive almost two weeks following reports that Toyota would pay $10 million to dismiss legal claims made by the relatives of a California state trooper and three family members whose deadly 2009 auto accident served as one impetus for the manufacturer’s recalls.
That wasn’t the only verdict that Toyota has lost. There have also been individual lawsuits, such as the one that freed Koua Fong Lee from serving a 10-year prison sentence over vehicular homicide because it was found that his Camry suddenly accelerated and killed the father and son.
This is encouraging news for the hundreds of people who have filed lawsuits against Toyota since the recall. There have been more than 200 lawsuits filed and more are added everyday. They accuse Toyota of various things, personal injury lawsuits, value based lawsuits, and wrongful death lawsuits are just some of the categories.
If you or a loved one are involved in a Toyota sudden acceleration incident or feel as if you were misled at the time of sale as to the resale value and safety of your vehicle then it is imperative that you get legal council that is experienced in defective product litigation to assure that you get the compensation you deserve. Call Phillips Webster for a consultation on your legal rights.
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