Recent decisions in a separate high-profile class action against Toyota are a welcomed result for consumers

A Win for Consumers

Two recent decisions by the High Court in high-profile class actions against Toyota and Ford are a welcomed result for consumers.

Both cases involved vehicle defects affecting vehicle performance, the case against Toyota concerned defective diesel particulate filters, and the case against Ford concerned defective powershift transmissions. In both cases, when the vehicles were sold, the defects were hidden and unknown to the consumer.

The High Court held that compensation for the reduction in the value of the vehicles should be assessed at the time of supply, having regard to all that is known about the state and condition of the goods, including the full knowledge of any hidden defects. The High Court rejected Toyota’s argument that no compensation is payable where the defect has subsequently been repaired. However, factors such as the effectiveness, cost and inconvenience and timing of any repair of any hidden defects are relevant to the assessment of the state and condition of the goods.

The High Court ordered that the cases be remitted to the Federal Court for the determination of damages.

The High Court decisions provide clarity on the assessment of damages in circumstances where a defect is unknown at the time of supply but is later discovered by the consumer. Now that there is a settled method of calculating consumer loss, the decisions may encourage reasonable manufacturers to engage in early dispute resolution in relation to defective vehicle claims.

Alleged Diesel Defeat Devices in Toyota Vehicles

Maddens Lawyers is currently representing the lead plaintiff in a separate class action against Toyota which alleges that Toyota manufactured certain diesel vehicles that have engine devices which, under normal driving conditions, impact the vehicle’s emissions control system resulting in the vehicle emitting higher levels of nitrogen dioxide. These devices are commonly known as “defeat devices”. Toyota diesel vehicles alleged to have been fitted with these defeat devices include the Hilux, Landcruiser, Landcruiser Prado, Fortuner, Granvia, HiAce and RAV4 models.

Click here for more information, or here to register your interest in the class action.