Toyota may be prosecuted for economic losses: judge

NEW YORK- Toyota Motor Corp. (7203.T) owners (TM).(N) vehicles were recalled over unintended acceleration may pursue claims against the automaker that the problem caused the value of their cars in the fall, a federal judge decided Monday.

U.S. District Judge James Selna at Santa Ana, California, has confirmed its interim order last month allowing the case to go forward.

The plaintiffs argue that they have suffered economic losses because Toyota has failed to disclose or to repair the problems their cars to thrust forward unexpectedly.

"Taking these allegations as true, as the Court must be at the stage of the pleading, they establish an economic loss," wrote Selna. "Plaintiffs negotiated for safe vehicles and without defect, but received rather dangerous, defective vehicles." A vehicle with a default is a value less than 1 without a flaw. ?

Toyota said it expects to prevail in the dispute.

"Toyota is confident that no defect exists in its electronic throttle control system," spokeswoman Celeste Migliore stated in a press release. "Now the onus squarely on counsel for the applicants to prove their allegations and Toyota is satisfied that there is no evidence."

Steve Berman, managing partner of Hagens Berman and many claimants, co-lead counsel applauded the decision.

"Judge Selna agreement with... our contention that Toyota owners who tried to sell their vehicle could still make a claim because they paid for their vehicles, buy cars were not as much as these flaws worth free car"he has said in a release. "

Separately, Selna held a hearing on whether to accept the argument of the applicants for California law should apply to economic loss should be linked to the unexpected acceleration.

California consumer laws are seen as more favorable to the plaintiffs that the laws in many other States. Toyota asked the judge for California law does not apply to proceedings in other States.

The case is In re Toyota Motor Corp. unintended acceleration Marketing, sales practices and products liability litigation, U.S. District Court, Central District of California, no. 10 - ml - 02151.