Toyota wins defects case in two US states

Los Angeles Toyota Motor Corp won dismissal of most claims by Florida and New York car owners who contended the company drove down the value of their vehicles by failing to disclose or fix defects related to sudden acceleration.

Florida plaintiffs can't sue Toyota for economic loss if they didn't experience an actual "sudden unintended acceleration" event, said US District Judge James Selna in Santa Ana, California, making final a tentative ruling from April. New York plaintiffs are cut out if they didn't experience such an event or didn't have a measurable loss when trying to sell or trade in their vehicles, Selna said.

Friday's ruling will affect "most economic loss claims" in those states, said Carl Tobias, law professor at the University of Richmond in Virginia. "It might also make assembling a class more difficult as there would be significantly fewer eligible parties."

The decision may eliminate millions of vehicle owners from the litigation, lawyers for Tokyo-based Toyota and the plaintiffs said at an April 23 hearing.

Selna had earlier decided that California plaintiffs could sue over economic loss even if they didn't experience an episode of unintended acceleration. Selna also ruled in June that vehicle owners in other states couldn't use California law to pursue their claims.

"We are disappointed that Judge Selna requires class members to drive ticking time bombs before they can sue," Steve Berman, a lead lawyer for plaintiffs claiming economic loss, said in an email on Friday. A Toyota representative had no immediate comment on Friday's ruling.