Jury Awards Dealer $15.8M Against Toyota Over Prius Recall

by Bamidele Ogunberu Posted on July 16th, 2019

A U.S. jury ordered Toyota to pay $15.8 million to a dealer in Southern California in a verdict related to Prius recalls.

In a lawsuit, the dealer had alleged that the Japanese automaker’s recalls in 2014 to fix the electric power system of its Prius models failed to fix defects.

Roger Hogan, the owner of Toyota dealerships in San Juan Capistrano and Claremont, had alleged that he was retaliated by the company after raising concerns about the defects in Prius electric power system in 2017.

The dealer sued the company two years ago alleging retaliation for pointing defects that could cause the electric vehicles to power down unexpectedly and decelerate while in motion.

Hogan also accused Toyota of damaging his dealership by not providing enough top-selling truck and sport utility models, costing him lost profits in millions of dollars.

An Orange County jury stated now that Toyota had breached good faith and fair dealing in its contracts with Hogan, who is one of its biggest dealers. Hogan’s attorney, Amnon Siegel, reportedly said that the decision related specifically to the dealer’s allegations that the recall failed to fix safety defects.

Toyota officials were quoted as saying, “While we respect the jury’s decision, we remain confident the evidence and testimony clearly demonstrated that Toyota abided by its contractual obligations to the Hogan dealerships and has been transparent with its dealers, regulators and customers regarding the vehicle issues raised at trial. We will consider our options moving forward.”

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