Hyundai, Kia can ask court to consider whether cities can sue over car thefts

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Update:

• A federal judge in California ruled officials from New York, Ohio and Wisconsin can appeal his ruling against Kia and Hyundai’s motion to dismiss negligence claims related to vehicle thefts.
• U.S. District Court Judge James V. Selna denied a motion to stay the case while the 9th District hears those appeals.
• “Beyond their assertion that a stay would ‘save all parties the expense of litigating GE plaintiffs’ claims without the benefit of appellate input,’ defendants do not make a strong enough argument that a stay is warranted pending appeal,” Judge Selna writes in his opinion. 
• The multidistrict litigation includes 17 cities and municipalities that claim Hyundai and Kia car thefts take scarce resources from local law enforcement and first responders.

Update:

• Lawsuits from Columbus, Ohio; Milwaukee; and Seattle joined a sprawling multidistrict litigation (MDL) claiming Hyundai and Kia failed to install anti-theft devices in their vehicles. 
• The complaints were consolidated into an MDL overseen by a federal judge in California. 
• Hyundai and Kia are accused of failing to install engine immobilizers into their vehicles, leaving them vulnerable to theft.
• The cities argue a subsequent rash of vehicle thefts, exacerbated by a TikTok trend showing how to steal the vehicles, forces them to siphon resources from local law enforcement and first responders to address the issue. 
• The MDL also includes around 60 consumer lawsuits and complaints from insurers.

Hyundai, Kia car thefts lawsuit overview: 

• Who: The city of Cleveland filed a lawsuit against Hyundai Motor America and Kia America Inc. 
• Why: Cleveland claims Hyundai and Kia have put public safety at risk by allegedly failing to properly protect their vehicles from being stolen without a key present.
• Where: The class action lawsuit was filed in California federal court.

(March 20, 2023)

The city of Cleveland has filed a lawsuit against Hyundai Motor America and Kia America for allegedly failing to ”keep up with the times” by not ensuring the ignitions on their vehicles could not be started without a key present. 

Cleveland claims Hyundai and Kia’s alleged failure to properly protect their vehicles’ from theft has led to a “vehicular crime wave” spurred by viral TikTok and news videos showing how easily the Hyundai and Kia vehicles can be stolen. 

Hyundai and Kia, meanwhile, made a business decision to forego equipping their vehicles with “common anti-theft technology” in order to reduce their costs and “boost profits,” the Hyundai and Kia lawsuit alleges.

“Hyundai and Kia are nearly unique among automobile manufacturers in failing to install vehicle immobilizers in most of their cars,” the Hyundai and Kia lawsuit states.

Cleveland argues that the rash of vehicle thefts has had a “significant impact” on a number of agencies in its city, including law enforcement operations, emergency services, and public safety. 

Kia, Hyundai vehicle thefts problematic for understaffed Cleveland police department, says suit

The vehicular theft issue has also caused problems particularly for the city of Cleveland due to its police department already being under “considerable staffing stress,” the Hyundai and Kia lawsuit alleges. 

The city claims the issue with vehicular thefts could be avoided if Hyundai and Kia decided to equip their vehicles with immobilizers, while arguing that the automakers install them in vehicles sold in Canada and Europe since regulations there “expressly require them.” 

“It is only in the United States that Hyundai and Kia have decided to trade public safety for profits,” the Hyundai and Kia lawsuit states. 

Cleveland claims Hyundai and Kia are guilty of negligence, common law qualified public nuisance, and common law absolute public nuisance. 

The city is demanding a jury trial and requesting injunctive relief and an order that the alleged conduct constitutes a public nuisance, along with an award of actual and compensatory damages. 

Several class action lawsuits were filed against Hyundai and Kia last year by consumers arguing the automakers failed to equip certain vehicles with engine immobilizers that would help prevent theft. 

Have you had your Hyundia or Kia vehicle stolen? Let us know in the comments! 

The city of Cleveland is represented by Dean Kawamoto, Gretchen Freeman Cappio, Derek W. Loeser, Ryan McDevitt, Alison S. Gaffney, Felicia J. Craick, Zachary Gussin, and Kylie N. Fisher of Keller Rohrback L.L.P. 

The Hyundai, Kia car thefts lawsuit is City of Cleveland v. Hyundai Motor America, et al., Case No. 2:23-cv-01713, in the U.S. District Court for the Central District of California.

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• Land Rover recalls more than 50K Range Rovers for rearview camera defect
• Mazda issues recall due to potential steering defect
• Toyota issues ‘do not drive’ advisory for vehicles involved in Takata air bag recalls