With the announcement this week of recall number three for the world’s largest automaker, the media coverage continues to spit out shocking statistics about the number of accidents and injuries allegedly attributable to the recalled vehicles. While the numbers vary depending on the source, it appears as though at least 30 class action lawsuits have been filed against Toyota and no less than 15 individual lawsuits. The majority off these suits are based on the original accelerator problem that was the basis of the first recall back in October. We can only guess at how many more will be filed before the dust settles. While there may ultimately be thousands of Plaintiffs involved in the class action lawsuits, it is the individual lawsuits that may cost the automaker the most money in the end. So what is the difference between a class action lawsuit and an individual personal injury lawsuit and why may the second type cost so much more money?
A class action lawsuit is a form of lawsuit where a large group of people collectively bring a claim to court. While class action lawsuits can be filed in either state or federal court, in most lawsuits, if the damages sought exceed $5,000,000 then the federal courts have original jurisdiction over the case – meaning it will be heard and decided in federal court. Although there are other requirements for a class action lawsuit, the two most important defining characteristics are that: (1) the class must be so large as to make individual suits impractical, (2) there must be legal or factual claims in common. Product liability cases are frequently filed as class action lawsuits. Additional class action lawsuits that Toyota may be facing are for loss of value (vehicles owners claiming that their cars have lost value as a result of the recalls) and loss of profits (stockholders claiming that they have lost anticipated profits as a result of the recalls). While class action lawsuits are efficient and may provide some compensation for the individual members of the class, the compensation is generally minimal – sometimes nothing more than a coupon to be used on a future purchase.
Individual personal injury lawsuits, on the other hand, are filed on behalf of an individual for negligence and are filed in state court. The plaintiff has the burden of proving that the defendant was negligent, but once negligence has been proven, a jury usually decides how much to award the plaintiff in damages. If a jury is particularly sympathetic to a plaintiff – or particularly unhappy with a defendant – they may award the plaintiff a huge sum in “pain and suffering” damages on top of any actual damages that the plaintiff suffered.
If you believe that one of the vehicles involved in the recent Toyota recalls is responsible, in whole or in part, for injuries you suffered in an accident, contact an experienced California personal injury and product liability attorney to discuss your options.
If you would like an experienced attorney to evaluate your case, contact the law offices of Ledger & Associates at 1-800-300-0001 or visit us at www.ledgerlaw.com.
