Toyota Canada settles economic loss litigation

Settlement addresses claims for alleged economic loss linked to 2009/10 recalls

Published: August 25, 2013, 1:00 AM
Updated: November 22, 2021, 4:04 PM

Toyota Canada has announced an agreement to settle litigation re consumer claims for alleged economic loss linked to recalls of Toyota vehicles in 2009 and 2010.

The class action settlement is pending approval by courts in Ontario, Quebec, Nova Scotia and Saskatchewan .

The settlement will resolve the economic loss claims against Toyota commenced on behalf of all Canadian owners and lessors of Toyota vehicles with electronic throttle control (ETC) systems.

This settlement does not address ongoing litigation for personal injury or wrongful death claims related to alleged unintended acceleration.

In a statement, Toyota said: "Turning the page on this legacy legal issue is in the best interests of the company, employees, dealers and, most of all, customers."

According to the company, "Reliable scientific evidence and multiple independent evaluations have confirmed the safety of Toyota's electronic throttle control systems."

The terms of the economic loss settlement agreement are intended to demonstrate that consumers can continue to be confident in their vehicles and count on Toyota to stand behind its products, Toyota said..

Subject to court approval Toyota Canada will launch a new customer-support program that will provide prospective supplemental warranty coverage for certain vehicle components and will retrofit additional non-hybrid vehicle models subject to the floor mat recalls with a free brake override system (BOS).

In addition, under the settlement, Toyota Canada will offer cash payments to eligible current owners and lessees who will not be offered BOS.

The proposed settlement would also establish four scholarships at Canadian engineering schools totalling $ 600,000.

"This proposed class action settlement represents a high water mark for Canadian consumer product litigation" said Joel Rochon , a partner at Rochon Genova, one of the legal firms that initiated the litigation.

"Thousands of Canadian consumers will receive meaningful benefits from this settlement," he added.

For more information on the economic loss settlement, consumers are asked to visit or call 1-855-823-0650.