Toyota Strives to Block Stalling Prius Defect Class Action

Toyota has attempted to block a class action lawsuit alleging that some Priuses possess a defect that causes the vehicles to stall.

According to the car manufacturer, the customers’ claims should be handled out of court.

Toyota alleges that two customers who had brought claims forward in the Prius class action lawsuit signed arbitration agreements that prevented them from suing. This agreement was reportedly part of the purchase terms of their vehicles. 

According to Toyota, the arbitration agreement is valid and enforceable under the Federal Arbitration Act. The company also claims that customers knowingly and voluntarily agreed to sign the arbitration agreement, so it should be upheld.

Stephen Kosareff and Laura Kakish are two of seven plaintiffs who filed the Toyota Prius hybrid defect class action lawsuit, and the two who Toyota says are not able to pursue legal claims.

Toyota says they leased and purchased their vehicles in 2010, and inso doing, signed arbitration agreements.

With five others, Kosareff and Kakish filed their Toyota Prius defect allegations against the car maker in 2018. They claimed that Priuses possess defective inverter components.

Allegedly, these defective elements can cause the vehicles to overheat, and then to slow down or stall suddenly if they are being driven at high speeds.

The customers state that this slowing or stalling is a part of the vehicles’ “fail-safe” mode in 2010 to 2014 Priuses. 

Drivers say that this defect is dangerous one, arguing that if the vehicles stall, they can get into collisions that can injure or kill drivers, passengers and others. 

According to customers, Toyota could have foreseen this problem, noting that other hybrid vehicles have also been the subject of criticism around their safety. In particular, the drivers point to earlier safety concerns raised about the Toyota Highlander SUV hybrids.

The customers say that the defect financially injured them and other drivers, because had they known that the Priuses possessed this defect, they would not have purchased the vehicles or would not have paid as much as they did for them.

The plaintiffs note that many customers are drawn to hybrids specifically because they are advertised as being fuel efficient.

However, the defects in the inverter components allegedly cause the vehicles to stall and decreases the vehicles’ fuel efficiency.

The drivers argue that this problem further financially injured customers, because they paid more money for fuel than they would have if they had purchased a hybrid that did not have this defect.

Allegedly, Toyota knew about the problem and did not inform customers of the problem, nor did they conduct effective recalls to compensate customers and repair damage after the vehicles were on the market.

The plaintiffs note that the company did conduct a recall in 2014 and 2015, but the recall did not solve the problem. 

To support their allegations that Toyota is aware of the defect, they note that 2005 Priuses also experienced a similar defect.

They state that the car manufacturer did not effectively deal with the 2005 model year problem, either. Allegedly, they increased the voltage of some models by way of a repair, which worsened the problem.

The Toyota Prius hybrid defect class action lawsuit went through several revisions before Toyota made this effort to end it in arbitration.

Some claims were trimmed from the Toyota Prius hybrid class action lawsuit in several instances. 

Currently, the remaining allegations include breach of implied warranty, fraudulent concealment, unjust enrichment and consumer protection violations.

Claims were trimmed from the Toyota Prius defect class action lawsuit after a judge denied Toyota’s request to dismiss the entire Toyota Prius hybrid class action lawsuit, instead only agreeing to reduce the allegations.

The company based its request for dismissal on an argument that the defect was caused by lead soldering, and according to the judge, such a technical argument was not appropriate at the current stage in litigation. 

Do you drive a Prius? Why did you choose your vehicle? Share your experiences in the comments below. 

The Toyota drivers are represented by Jeffrey L. Fazio and Dina E. Micheletti of Fazio Micheletti LLP, Louis R. Miller, Amnon Z. Siegel and Casey B. Sypek of Miller Barondess LLP, Kiesel Law LLP, Baker Marquart LLP, Cuneo Gilbert & LaDuca LLP, and Audet & Partners LLP. 

The Toyota Prius Hybrid Stalling Defect Class Action Lawsuit is Remy McCarthy, et al. v. Toyota Motor Corporation, et al., Case No. 8:18-cv-00201-JLS-KES, in the U.S. District Court for the Central District of California. 

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