Judge offers bad news to Toyota owners over “economic loss” claims

Toyota Liability SuitIn Santa Ana, California, U.S. District Judge, James Selna, announced that the owners of Toyota who have been seeking to recover their losses in the value of their vehicles are unable to pursue such claims according to the state’s law, during Wednesdays ruling. Toyota owners said that the value of their vehicles have dropped due to the acceleration problem that has caused several deaths in the past.

This setback has become quite a problem for the Toyota owners, as the state of California consumer protection laws would have normally given them a better chance than any of the other states on their claims. However, around 70 percent of all their “economic loss” claims that they were pursuing were filed in other states, not California.

One of the major reasons they are unable to pursue such claims in California is because by applying their California law, they would need to revive many other claims that have been made within the U.S., but the other U.S. States do not permit this, as it would violate the principles that have been set by the U.S. Supreme Court.

Since the late 2009, Toyota has recalled a few million vehicles from the U.S. due to the vehicle problems, which ranged from floor mat flaws to gas pedals that would get stuck. As well as anything else that was linked to unwanted and unintended vehicle acceleration. The Toyota owners that were affected by the value loss in their vehicles claim that it is the companies fault. They did not disclose or fix any of the problems with the vehicle systems or other, the same that would cause the vehicles to accelerate when undesired. Even still, the Japanese automaker disputed such claims.

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