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Case ID: 4968 | Automotive | 01/12/2007
Toyota Motor Sales U.S.A. Inc. quietly settled a class-action lawsuit that covers about 3.5 million Toyota and Lexus vehicles that may have been damaged by engine oil sludge.
Details of the settlement, which allows for third-party mediation of sludge claims rejected by Toyota, have been mailed to 7.5 million current and previous owners. Critics contend Toyota has told customers and dealers too little about sludge issues. They say some customers took vehicles with dead engines to dealers who had little or no knowledge of the problem and often assumed it was the owners' fault. The lawsuit, filed in a Louisiana district court, is expected to be approved by the court in early February. Sludge is gelled oil that fails to lubricate engine parts. It can lead to damage, often requiring a new engine at a cost that can exceed $10,000. Complaints about sludged engines have plagued several carmakers, but Toyota's troubles have been especially controversial in light of its reputation for vehicle quality. The issue highlights a possible chink in the company's armor. Executives fear Toyota is growing too fast for its engineering resources. That could lead to quality snags and a tarnished reputation. When a customer takes a sludge-caked engine to a dealership, there is usually a "clean-out" procedure. The head is pulled and a service technician tries try to steam out the sludge. If that doesn't work, the engine must be replaced. Sludge can result from poor engine design; overly tight tolerances between moving parts; improper cooling; and poor maintenance by consumers. Toyota insists the problem arises mainly when owners fail to change their oil frequently enough. The agreement does not find Toyota at fault. "The settlement doesn't mean that Toyota or Lexus vehicles are predisposed to develop oil gel," according to the notice. Under terms of the settlement: Owners of damaged vehicles have eight years plus 120 days from the original purchase date to file a complaint. If Toyota denies the claim, owners can appeal to a judge-appointed third-party administrator.. Customers who have already made repairs may be able to recover the costs. Only those who elect not to participate in the settlement can sue Toyota individually. The deadline for that choice was Dec. 31, 2006. At Lawcash.com, it is our goal to keep you informed about important legal cases, class actions and settlements. Our lawyers offer free legal evaluations in tort cases, class actions, personal injury, and other lawsuits because we are dedicated to helping you resolve your legal complaints. Other Automotive Cases of Interest Continental Tire North America Inc. retirees have filed a class-action lawsuit against the company over medical benefits. State lemon laws protect car owners when they have managed to buy a car that just can’t be fixed. The parties have reached a tentative settlement apparently valued at $1.5 million in an action filed against Mitsubishi Motor Manufacturing of America on behalf of owners of 1999 Mitsubishi Galants, who allege that the cars were manufactured with a brake defect which results in premature wear of the front brake rotors so that they must be replaced repeatedly. Claim forms must be postmarked no later than April 22, 2004, to be considered valid. The parties have reached a settlement apparently valued at $6.5 million in a 38-state action filed against Ford Motor Credit Corporation on behalf of Ford and Lincoln Mercury “Red Carpet” lease customers who allege that the company overcharged them for early lease termination fees between 1991 and 1995. Persons eligible to take part in the settlement should contact the settlement claims administrator for more information. Florida's laws protect consumers from businesses that would otherwise harm them. The parties have reached a tentative $6.9 million settlement in an action filed against automobile retailer AutoNation, Inc. on behalf of Floridians who allege that, from August 6, 1995, through October 31, 2000, the company failed to deliver correctly signed retail installment contracts in connection with the sale of new and used motor vehicles in violation of Florida's Motor Vehicle Retail Sales Finance and Deceptive and Unfair Trade Practices Acts. To recover under the settlement, you must submit a claim form no later than July 29, 2003.
A class action has been filed against Motiva Enterprises, LLC, and Shell Oil Company on behalf of all persons who purchased sulfur-tainted gasoline from New Orleans-area gas stations that were supplied by Motiva during May 2004. The action seeks compensatory damages to pay for vehicle repair and customer inconvenience. A national class action has been filed in Utah against German automaker Volkswagen of America, Inc. The action is brought in behalf of all U.S. residents who have purchased or leased 2002-2003 Volkswagen Jetta automobiles with factory installed heated seats. The Jetta owners allege that the seats are defective and overheat, causing property damage and bodily harm. The action only seeks to establish a fund to repair and or replace the defective seats, it does not seek any damages for personal injury. The action is brought under the theory of strict liability, claiming the seats were a defective design as well as claims for breach of implied and express warranties, negligence and a failure to warn Jetta drivers of the risk of harm and property damage. |
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