Out-of-Control Toyotas, Out-of-Luck Owners

Earlier this month, Rich Grandy of Crystal Beach, Florida was easing his 2005 Toyota Tacoma into a parking space in front of his local 7-Eleven, when it took off, hit the front doors of the convenience store and shattered the adjacent picture window. The only thing that kept the Tacoma from advancing further into the convenience store was the low wall that framed the window and Grandy’s foot clamped on the brake. As his vehicle attempted to labor forward, Grandy shut off the ignition, and the event stopped.

Former NHTSA Administrator Strickland Gets Part 9 Spanking

When David Strickland went directly from representing industry’s interests as the Administrator of the National Highway Traffic Safety Administration to representing industry’s interests as a member of the Washington D.C. lobbying firm Venable, LLC, he was part of a proud agency tradition of lending the dignity of their public offices to private commercial interests.

NHTSA Denies Toyota Unintended Acceleration Defect Petition

Eight months after a Bristol, RI Toyota Corolla owner petitioned the National Highway Traffic Safety Administration to investigate low-speed surges into Toyota Corollas, the agency has denied the petition, concluding:

What Good Can Come of Reporting Toyota UA?

Last week, two young clean-cut and preternaturally earnest lawyers travelled from the D.C. and New York offices of Cahill Gordon & Reindel LLP to meet with Bob and Kathy Ruginis, the Bristol, RI couple who reported their Unintended Acceleration incident while parking to the Toyota Special Monitor and to NHTSA.  

Toyota’s Billion Dollar Web

Back in 2010, after Toyota announced that a federal grand jury in New York had subpoenaed the company on June 29 for documents regarding relay rod failures in Toyota truck models, we asked if the automaker would be the first to be prosecuted under the Transportation Recall Enhanced Accountability and Documentation Act (TREAD).

Well, right question, wrong defect.

Under the settlement with the Department of Justice announced today, Toyota is banged for $1.2 billion, and prosecution for committing one count of wire fraud is deferred for three years, for the lies it told about the floor mat entrapment and sticky pedal recalls. According to Toyota’s Statement of Facts, the automaker sought to limit its floor mat recalls, even though the entrapment hazard affected other models, and resisted the sticky pedal recall, even though Toyota had addressed the problem in Europe.

“This sends a mixed message,” says Sean Kane, president of Safety Research & Strategies. “On the one hand, a $1.2 billion fine is a very significant hit. But the government’s focus is only on the narrow areas of the floor mats and sticky pedals. The bulk of Toyota vehicles experiencing Unintended Acceleration problems were never recalled.  That billion dollars doesn’t do a thing for Toyota owners stuck with defective vehicles.”

The skeleton of this particular set of lies have been in the public domain for several years. In April 2010, when former Secretary of Transportation Ray LaHood announced that the agency had imposed a $16.4 million fine on Toyota for failing to recall 2.3 million vehicles with defective accelerator pedals – then the largest civil penalty NHTSA had levied against an automaker – the Secretary failed to make public the documents laying out his rationale. In May 2011, NHTSA quietly posted the sternly worded demand letter that explained why Toyota got slapped.

To remind our readers, Toyota recalled the CTS supplied pedal in Europe in September 2009, but waited until January 2010 to recall the pedals in the U.S. However, on October 7, 2009, “a staff member of the Toyota Motor Corporation Product Planning and Management Division sent a copy of an Engineering Design Instruction describing the pedal remedy that was already implemented in Europe to someone at Toyota Motor Engineering and Manufacturing North America, Inc. for the accelerator pedal of a RAV 4 manufactured in Canada. Two weeks later “a member of the TMC PPM inexplicably instructed a member of the TEMA PPM not to implement this Engineering Change Instruction. Furthermore, in November 2009, Toyota provided NHTSA with FTRs regarding sticking accelerator pedals on vehicles in the United States but not with information regarding Toyota’s extensive testing and determinations regarding the cause of the sticking accelerator pedals or an explanation of the significance of the FTRs, the demand letter said.

The Toyota Owners Left Holding the Bag

John Biello was not ready for the cruise control malfunction that sent his 2009 Tacoma careening down an exit ramp, then skidding into a rollover last June. But Tuesday, when he and his wife Diane appeared before the Commonwealth of Massachusetts Division of Insurance Board of Appeals to fight an automatic rate increase mandated by state law, Biello was fully prepared to educate the hearing officer about Unintended Acceleration problems in Toyotas.

As the great tide of cash washes from Toyota into the pockets of the U.S. government, attorneys, research institutions and some death and injury victims to settle fines and claims without an admission that the automaker’s electronic throttle control system is defective, owners like John and Diane Biello represent those left to deal with Toyota’s mistakes on their own. The Rehoboth, Massachusetts couple had no counsel, just a compelling account and a binder of public documents showing that Toyota Unintended Acceleration problems continue today and that juries and technical experts recognize what the National Highway Traffic Safety Administration has not: Toyota’s badly designed electronic architecture can cause UA.

“I knew that there had been this unintended acceleration problem. I had read about it a couple of years ago,” John Biello says. “But I thought it pretty much done. I thought the problem was fixed and I didn’t really think my vehicle was involved because I got no Unintended Acceleration recall notices.”

Strickland Takes Express to Lobbytown

Well, we cracked open our virtual newspaper the other morning and found a bunch of non-news – winter is cold, New Jersey Governor Chris Christie’s a bully, and such. On the inside page, however, was a non-news story of particular interest: Former NHTSA Administrator David Strickland is leaving public service to re-enter public service as a lobbyist for the venerable firm of Venable LLP, which describes its business thus:

 "As the federal government’s regulatory reach expands, it is more important than ever to have a finger on the pulse of legislative and executive branch decision makers in Washington. Long recognized as one of the capitol’s leading law firms, Venable’s Washington office helps clients understand how evolving regulatory and policy issues can affect their businesses. The firm also assists clients in making their voices heard as policy is being crafted through both direct lobbying and the management of numerous issue-focused industry coalitions."

On its website, Venable boasts about helping clients clear regulatory hurdles, and successfully defending clients in product liability cases involving asbestos, tobacco, automobiles, industrial chemicals, and consumer electronics, as one of the nation’s “top defense firms.”

In hiring Strickland, Venable described him thus:

“An advocate for public safety on the roads, David has impressed the industry with his accomplishments,” said Brock R. Landry, co-chair of Venable’s Government Division. “From the Hill to the Administration, David is well respected and understands the often complex regulatory process from different points of view. He will play a key role in the ongoing growth of our Government Affairs, Automotive, and Technology practices.”

 

We think that the thing industry will be most impressed by was the pass David Strickland gave Toyota’s electronics in the Unintended Acceleration crisis. Sure, the government fined Toyota to the max. But the automaker only had to pay penalties for failing to mount timely recalls for floor mat interference and sticky accelerator pedals. NHTSA whitewashed the problems of Toyota’s electronic throttle control system. And, it was still chump change to the automaker. More importantly, it gave Toyota a federal cover in litigation against claims of an electronics defect. And, while the explosive Bookout verdict kinda blew that cover off with the conclusion of two respected experts that Toyota’s software was dangerous spaghetti code, (See Toyota Unintended Acceleration and the Big Bowl of “Spaghetti” Code) Strickland, as Robin to Former Transportation Secretary Ray LaHood’s Batman, did his part.

Toyota Lawsuits Wrapped?

Toyota is looking to close out its unintended acceleration crisis, with a speedy resolution to the remaining lawsuits out there. According to news reports, the automaker has been inspired by the Bookout verdict to settle a whole passel of UA lawsuits. Last month, for example, Toyota came to terms with Opal Gay Vance, a West Virginia woman who injured her neck and back, when her 2010 Camry suddenly accelerated, striking a trailer. The confidential settlement forestalled a trial set to begin on Jan. 21. In California, orders from judges in the U.S. District Court in Santa Ana and Los Angeles Superior Court opened the door to settlements in nearly 300 death and injury plaintiffs’ cases.

“We’re glad to see that Toyota has decided to approach this in a systematic and forthright way, and we look forward to seeing most of the pending claims settled in early 2014,” says attorney Donald Slavik of Robinson, Calcagnie, Robinson, Shapiro, Davis Inc. of Newport Beach, CA.

The race to empty the court dockets should not be confused with a conclusion to Toyota’s UA technical problems, which continue unabated. SRS took a stroll through the Vehicle Owners Questionnaire database, looking for 2013 UA complaints and found more than 300. They cover all of the classic scenarios, like this one:

"I backed my 2006 Toyota Corolla into a friend's driveway, and then put the car into drive to straighten it a bit. The car suddenly without warning shot across the street (perhaps at 45-50 mph), went over a 6" high cement retaining curbing, and across a lawn into another driveway. All the while I had my foot firmly on the brake (not the gas pedal). I swerved the wheel to avoid hitting a telephone pole, and the house. I finally got the car into neutral, and at last the brakes engaged, and I was able to stop the car avoiding a pick-up truck in the driveway and a tree. During this entire time the engine was loudly revving. Other than 3 shredded tires and 2 ruined rims, the car seems to be intact. I have contacted Toyota and hope for a successful resolution. The service manager at the dealership where this vehicle was purchased, however, said that since it is not under recall there is nothing they can do. Meanwhile I will be fearful every time I get behind the wheel, which I have yet to do!    3 new tires and 2 new rims is a small price to pay - it could have been my life! Had cars been passing by on this normally busy street, or children walking on the sidewalk on their way home from school - other lives as well could have been taken. This was a terrifying event! Judging from all of the similar stories written regarding this make, model and year, Toyota needs to do a recall to solve this problem once and for all." (ODI 10496026)

Toyota Unintended Acceleration and the Big Bowl of “Spaghetti” Code

Last month, Toyota hastily settled an Unintended Acceleration lawsuit – hours after an Oklahoma jury determined that the automaker acted with “reckless disregard,” and delivered a $3 million verdict to the plaintiffs – but before the jury could determine punitive damages.

What did the jury hear that constituted such a gross neglect of Toyota’s due care obligations? The testimony of two plaintiff’s experts in software design and the design process gives some eye-popping clues. After reviewing Toyota’s software engineering process and the source code for the 2005 Toyota Camry, both concluded that the system was defective and dangerous, riddled with bugs and gaps in its failsafes that led to the root cause of the crash.

Toyota Electronics = Guilty In Bookout

Toyota this morning quickly settled an Unintended Acceleration case, before it could move into the punitive damages phase – hours after an Oklahoma jury has returned a $3 million verdict against the automaker in a 2007 crash that seriously injured the driver and killed her passenger.

In September 2007, Jean Bookout and her friend and passenger Barbara Schwarz were exiting Interstate Highway 69 in Oklahoma in a 2005 Camry. As she sped down the ramp, Bookout realized that she could not stop her car. She pulled the parking brake, leaving a 100-foot skid mark from right rear tire, and a 50-foot skid mark from the left. The Camry, however, continued speeding down the ramp, across the road at the bottom, and finally came to rest with its nose in an embankment. Schwarz died of her injuries; Bookout spent two months recovering from head and back injuries.

 The jury yesterday awarded $1.5 million in damages to Bookout and another $1.5 million to the Schwarz family and determined that Toyota acted with “reckless disregard.”

This was the first trial in which the plaintiffs, represented by Graham Esdale and Cole Portis of Beasley Allen in Montgomery, Alabama, made Toyota electronic malfunctions the centerpiece of an Unintended Acceleration case. And what may be significant going forward is not the verdict – although Oklahoma juries are not known for being overly sympathetic to plaintiff – but what is entered into the public record about what Toyota knows about the failures of its Electronic Throttle Control System– Intelligent (ETCS-i) and when they knew it. And what facts will fly from the nest of civil jurisprudence and into the public consciousness.

Pages