Dozens of lawyers seeking to take part in a wave of consolidated lawsuits against Japanese automaker Toyota appeared on Thursday before a US federal judge.
US District Judge James Selna has proposed a three-pronged structure to handle claims and is selecting attorneys who will serve on committees dealing with personal injury, economic loss and discovery research.
The attorneys are seeking a share of the anticipated judgment or settlement that some analysts have predicted could run into hundreds of millions of dollars or even more than US$1 billion.
Toyota is facing an avalanche of claims from across the US from owners who have alleged their cars suddenly accelerated. Other plaintiffs are seeking economic damages from Toyota, claiming the resale value of their vehicles has plummeted because of the recall crisis.
Toyota has yanked about 10 million vehicles for safety issues and last month agreed to pay a US$16.4 million fine, the largest for an automaker in the US, for hiding accelerator pedal defects blamed in more than 50 US deaths for at least four months.
Thursday’s hearing at the US District Court in Santa Ana, California, focused on determining how many attorneys will be involved.
Selna said in a tentative ruling he wanted to limit the number of lawyers in prominent roles.
“The court is concerned that at some point size impedes the ability to move forward efficiently and in a timely manner,” Selna said in a ruling.
Toyota attorney Vince Galvin, whom Selna appointed to represent the company along with Joel Smith on wrongful death and personal injury claims, praised the judge’s structure.
“I don’t think by having nine attorneys you clog the system,” Galvin said.
Galvin said it was important to have attorneys who are experienced in class-action cases.
“At its core this is a product-liability case,” Galvin said. “It’s important for both sides that we have attorneys experienced with this.”
Toyota, meanwhile, indicated in a statement that it was preparing to challenge some of the cases against the company.
“Recently we have seen instances where the facts did not support the initial claims and sensational reports,” a company statement said.
“In the best interests of all those involved, it’s important to keep this in mind as the case proceeds and facts are presented,” it said.
A further hearing has been scheduled for May 28.
In related news, Toyota said yesterday it would suspend production at one of its plants in Thailand at the end of the month as part of a revamp of its global production and supply network.
The automaker would shift production at Thai Auto Works near Bangkok — which builds the Fortuner sports utility vehicle and the Hilux Vigo pick-up truck — to two other Thai plants after May 31, a Toyota spokeswoman said.
The move will not result in job cuts, she said, adding that Thai Auto Works has 950 employees and an annual capacity of 50,000 units.
The shutdown, decided in November, is part of Toyota’s efforts to streamline manufacturing and distribution operations in order to meet demand more smoothly.
Thailand, where Toyota has four plants, has become the regional hub for the carmaker’s production and exports. The company has yet to decide on what to do with the factory after it closes.
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