Judge Won’t Dismiss Toyota Steering Defect Class Action Lawsuit

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A California federal judge refused to dismiss a class action lawsuit accusing Toyota Motor Corp. of selling vehicles with an electric power steering system defect.

In the class action lawsuit, the plaintiffs claim that the steering defect caused the affected vehicles to drift from the center of the lane while traveling at highway speeds. The affected vehicles are 2009 and 2010 models of the Corolla and Matrix vehicles. The plaintiffs allege that Toyota was aware of the power steering defect but failed to remedy the situation.

While Toyota argued that the class action lawsuit should be dismissed because plaintiffs failed to show that the car company knew about the alleged steering defect or hid the defect from consumers, U.S. District Judge Jesus G. Bernal ruled that the plaintiffs were not required to provide specifics when alleging violations of California’s Unfair Competition Law and Consumer Legal Remedies Act.

Judge Bernal made his decision just three months after he reduced the majority of claims from the Toyota steering defect class action lawsuit. He found that the allegations in that lawsuit were too vague, but could potentially qualify if it were amended to include narrower claims.

The Toyota class action lawsuit was initially filed in October by two plaintiffs who owned 2009 Corollas. They claimed that their vehicles had an electric power steering system defect, a defect that led to significant and widespread problems.

In February 2010, the National Highway Traffic and Safety Administration (NHTSA) opened an investigation into the electric power steering system defect of the Toyota Corolla and Matrix models. The investigation was closed by May 2011 after the NHTSA found that consumer complaints were related to operational issues. Subsequently, Toyota issued a bulletin offering to make adjustments to the steering system. According to the class action lawsuit, the notice was not adequately distributed to consumers.

In April, Judge Bernal found that the plaintiffs inappropriately combined claims against Toyota and its parent company Toyota Motor Sales USA Inc. without indicating which of the companies was responsible. Plaintiffs amended the class action lawsuit to clarify their allegations.

On Thursday, July 18, Judge Bernal held that the plaintiffs had adequately demonstrated that Toyota knew about the steering defect, showing that the company had received 168 consumer complaints about the issue. In the amended class action lawsuit, the plaintiffs were able to successfully argue that Toyota had failed to make a repair procedure known to dealerships or customers.

In Thursday’s decision, Judge Bernal upheld the California state claims but dismissed federal claims regarding warranties on consumer products. He said that the plaintiffs violated a statute requiring them to fully inform the company that they were acting on behalf of members of a class action lawsuit.

Plaintiffs in the Toyota steering defect class action lawsuit are represented by Thomas D. Mauriello of Mauriello Law Firm APC; John F. Edgar of Edgar Law Firm LLC; and Rosemary F Luzon, Natalie Finkelman Bennett and James C. Shah of Shepherd Finkelman Miller & Shah LLP.

The Toyota Steering Defect Class action Lawsuit is Irene Corson et al. v. Toyota Motor Sales USA Inc. et al., case number 2:12-cv-08499, in the U.S. District Court for the Central District of California.

UPDATE: On June 26, 2015, the parties filed a motion seeking preliminary approval of the Toyota steering defect class action settlement.

UPDATE 2: Instructions on how to file a claim for the Toyota Corolla power steering class action settlement are now available! Click here or visit www.CorollaECUSettlement.com for details.