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30Aug/100

Automakers Responding More Aggressively to Lawsuits

In light of the recent issues about sudden acceleration problems in Toyotas and the increase in lawsuits and possible settlement costs associated with them, the legal landscape is changing.  A report by the Dallas Morning News states that  automakers are pursuing increasingly aggressive legal strategies in the face of vehicle defect lawsuits.  As a result, the number of settlements for defective vehicles is on the decline and the number of defendant appeals is on the rise.

The report speaks generally about automakers and doesn't single out Toyota for having any more or less of a litigious approach to the sudden acceleration problems of its several models.  However,  it does note that the appeals in Texas in particular are more likely to be ruled in favor of the automakers, and the disputes over the causes of sudden acceleration only muddy the waters.

Even with the bad publicity, the Toyota cases won't be slam dunks. Indeed, a report this month regarding sudden acceleration cases may make it harder for plaintiffs to win against Toyota.  The National Highway Transportation Safety Administration's examination of 58 cases of sudden acceleration suggested no defect with Toyota's electronics in many of the crashes and incidents studied.

That said, many a defective vehicle lawyer have suggested Toyota's shifting explanations for the sudden acceleration combined with its failure to address electrical systems that control the engines make it difficult for Toyota to duck responsibility.  The cumulative cost of all the settlements could encourage the automaker to raise the stakes and take sudden acceleration claims to trial, especially in states and federal circuits where the environment is more hostile to plaintiffs.

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