auto safety recalls

Toyota to Pay $32.425 Million in Civil Penalties for Its Handling of Auto Recalls

By Los Angeles Personal Injury Lawyer on December 22, 2010

A National Highway Traffic Safety Administration (NHTSA) press release announced that Toyota Motor Corporation has settled on paying an additional $32.425 million in civil penalties for its handling of auto recalls. The decision comes after two independent investigations by officials. Toyota is expected to reportedly pay the maximum fines permitted under the law, which will be $16.375 million in one case and $16.050 million in another.

The U.S. Department of Transportation argued that Toyota failed to adhere to requirements for reporting safety defects to the NHTSA provided under the National Traffic and Motor Vehicle Safety Act. Under federal law, auto manufacturers are required to inform the NHTSA within five business days of discovering a safety defect and to promptly announce a recall.

The NHTSA’s first investigation evaluated when Toyota first learned of the pedal entrapment defect on certain vehicles and whether the automaker informed the agency quickly enough. According to the press release, Toyota recalled 55,000 all-weather floor mats in September 2007. In August 2009, pedal entrapment was connected to a fatal auto accident involving a Lexus model vehicle. The NHTSA then reviewed collision evidence and other data and determined that removing floor mats in previously recalled vehicles was unsatisfactory and that Toyota accelerator pedal redesign was necessary. Toyota then recalled 3.8 million Toyota and Lexus vehicles for floor mat entrapment in October 2009, which was expanded in January 2010 to include an additional 1.1 million vehicles.

The second investigation focused on whether Toyota informed the NHTSA in a timely manner about defective steering relay rods in multiple Toyota models that could lead to loss of steering control. In 2004, Toyota initiated a recall in Japan, claiming that only vehicles there were affected. However, in 2005, almost 1 million vehicles were recalled in the United States. By May 2010, the NHTSA received additional information relating to these vehicles that the automaker had not previously disclosed.

Vehicle defects put the lives of motorists, passengers, and pedestrians in unnecessary danger. As in this case, auto manufacturers can face sanctions for failing to promptly inform officials about known vehicle design flaws or manufacturing defects. Individuals injured and family members of those killed in auto accidents caused by vehicle defects may also be able to seek compensation from negligent manufacturers. If you have any questions about an accident that you believe was caused by a defective vehicle, contact the California vehicle defect injury lawyers at Panish Shea & Boyle LLP today. Call 1-877-800-1700.


$15M Verdict Awarded in Fatal Auto Product Defect Accident

According to a San Luis Obispo Tribune article, a jury has awarded $15 million to the parents of two daughters who both died in a fiery crash in 2004. Plaintiff’s experts found that, due to a power-steering fluid leak, the daughter who was driving the vehicle lost steering ability, causing the accident. The wrongful death lawsuit was filed against Enterprise Rent-A-Car and its corporate parent, who acknowledged prior to trial that they were negligent and that “their negligence was the sole proximate cause of the fatal injuries”.

The Chrysler PT Cruiser that the two daughters rented from Enterprise had been included in a safety recall only a month before the fatal crash. The recall notices declared that the power steering hose in 435,000 PT Cruisers from 2002 through 2005 could leak and cause a vehicle fire. Enterprise’s records demonstrated that the company did not repair the power steering problem in the PT Cruiser rented by the two daughters. Moreover, the same vehicle had been rented four times after the recall was announced – the fourth rental was to the daughters.

When wrongful death accidents are caused by another person’s negligence, whether the party responsible is a reckless driver or the manufacturer of a defective vehicle, family members of victims may seek compensation for their losses.

The California wrongful death lawyers at Panish Shea & Boyle LLP have obtained numerous multi-million dollar settlements and verdicts for family members who have lost loved ones due to negligent drivers, automotive defects, tire defects and other types of negligence. The firm’s attorneys have been recognized among the 100 Most Influential Lawyers in California, as Trial Lawyer of the Year by various organizations, and consistently by Super Lawyers® and Best Lawyers® publications. With its experience and success record, you can rely on Panish Shea & Boyle LLP to help you through the legal process. Call our nationally recognized plaintiff’s law firm today at 877-800-1700 for a free consultation.


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