Access To Justice

As someone who’s been involved in numerous lawsuits related to product liability, I can tell you I have seen it all.  But the Toyota recall is about as close to a perfect storm as it gets.  Case in point: Congress is now holding hearings on the matter.

In true lawyerly fashion, let’s review the facts:

•    Start with a company that has built its brand on quality.

•    Add in the largest recall in the company’s history and one of the ten largest of all time, totaling more than 8 million vehicles, 6 million in the U.S.

•    The recalls relate to everything from faulty gas pedals to brakes, all absolutely critical to safety.

•    According to the National Highway Transportation Safety Administration (NHTSA), 34 deaths allegedly were caused by gas pedal problems.

•    Toyota has allegedly been aware of the potential for problems with accelerators as early as 1999, and the NHTSA had been investigating the issue dating back to that period.

So, if I may paraphrase, it sure seems as if Toyota had some serious problems with its product that could potentially be dangerous, and the company chose to be in denial about it.

Now, once the company issued a recall, how it handled the matter was also a case study in what not to do.

•    To begin with there is evidence that Toyota was basically forced into the January 21 recall by the NHTSA.

•    Toyota CEO Akio Toyoda waited almost two weeks to comment on the recall before apologizing and calling the situation a “crisis”.

• Then, U.S. Secretary of Transportation Ray LaHood tells Toyota drivers not to drive their cars, only to later say he “misspoke”.

•    Toyoda says he won’t testify before a Congressional Committee; in the face of a threatened subpoena, he agrees to testify this week.

This brings us to the consequences of all of this mismanagement and lack of candor and transparency.

•    An estimated 44 class-action lawsuits have been filed under state and federal law by the end of last week.

•    Claims could reach $3.6 billion, based on an average loss of $600 per vehicle.

•    There are dozens of other individual lawsuits alleging that Toyota knew of the risk and did not act swiftly enough to correct the problem. Experts say these cases could cost Toyota billions in settlements.

•    At least one wrongful death lawsuit has been filed for $100 million related to the death of a Texas couple.

Toyota had serious problems with some of its product.  Instead of acknowledging the problems early on and taking the appropriate steps, the company chose a strategy that combined benign neglect with the finger-crossed hope that it could sweep things under the rug.  It is a strategy that too many businesses employ when product defects are in question.

The result: numerous lawsuits that will likely cost the company billions of dollars and damage its brand well into the future.

More importantly, what Toyota did was wrong.  It put people at risk to save a buck.  The company valued its reputation and revenue over the safety of customers.

If you’re one of those customers, you can find more information about the recall at Toyota’s website.

Toyota’s woes continue to mount.

Federal regulators are expected to announce a preliminary investigation today into reports of possible steering problems with the automaker’s popular Corolla model, according to an Associated Press report. The AP writes that the investigation could involve around 500,000 vehicles. Toyota says it is looking into fewer than 100 complaints about the car’s power steering. The company so far has not issued a Corolla recall.

The government probe comes just before a congressional hearing next week into the recent recalls by Toyota, says AP. The company has recalled more than 8 million cars since last November for sticky accelerators, problems with gas pedals and floor mats, and braking issues.

Another day, another automotive recall.

Earlier this week, Toyota recalled more than 400,000 2010 Prius hybrids for braking issues.

Now, the Associated Press reports that Honda Motor Co. has expanded a 2008 safety recall it issued for air bag inflation problems with its 2001 Accord and Civic models. Honda says it is recalling another 378,000 cars because the driver’s side air bag inflator may deploy with too much pressure, which can the inflator to rupture and hurt or kill the driver.

The company says it has received reports of 12 such incidents in the US, including 11 injuries and one death. No incidents have been reported since July 2009, when the company initially expanded its original recall to 440,000 cars. Honda says its most recent expanded recall includes certain 2001 and 2002 Accord, Civic, Odyssey, CR-V and some 2002 Acura TL vehicles.

Some of Toyota’s most popular car and truck models will languish on dealer lots as the automaker suspends sales while it investigates problems with accelerators that stick on certain vehicles, according to an ABC News report.  ABC has broadcast a series of reports examining random acceleration incidents involving Toyota vehicles, including some fatalities.

The Japanese motor company told its dealers to halt sales of the following models:

•    2009-2010 RAV4
•    2009-2010 Corolla
•    2009-2010 Matrix
•    2005-2010 Avalon
•    2010 Highlander
•    2007-2010 Tundra
•    2008-2010 Sequoia
•    2007-2010 Camry

“This action is necessary until a remedy is finalized,” said Group Vice President and Toyota Division General Manager Bob Carter in a press release. “We’re making every effort to address this situation for our customers as quickly as possible.”

Toyota also said in the release it would stop production at three of its US factories and a Canadian facility as it works to remedy the problem with the accelerator pedal assemblies.

Last week, the company recalled 2.3 million vehicles to fix problems with sticky gas pedals that could potentially cause cars to suddenly speed up, resulting in accidents. The eight suspended models were part of that recall.

If you or someone you know has been injured by one of the Toyota recall models, please contact us.

Recalls ruled the news cycle this week as a slew of announcements flowed from the likes of Toyota, Graco, and Conair. From autos to mops to strollers, it was a tough week for consumers.

Manufacturers involved in crib recalls may soon be required by the Consumer Product Safety Commission (CSPC) to provide refunds and other monetary credits to their customers to get them to discard defective cribs, writes Bloomberg.  Consumers have failed to fully respond to offers of free repair kits to fix product flaws, so many defective cribs continue to be used or resold in secondary markets, according to the CSPC. Refunds or credits may provide more of an incentive to get parents to respond, says the story.

Bloomberg noted that more than 7 million cribs have been recalled since 2007. That number rose again this week when about 635,000 cribs were recalled by Dorel Asia after a 6-month-old became entrapped and strangled in a crib when its drop side hardware failed, according to an Associated Press report.  The recall involves 20 models of Dorel Asia cribs with both drop sides and fixed front rails. Some cribs were recalled because a child can suffocate or strangle when the drop side detaches; others because a child can be trapped if a slat is broken or damaged. In one of the largest US crib recalls, the CPSC last November announced a recall of 2.1 million cribs by Stork Craft Manufacturing.

First it was Maclaren. This week it was baby products maker Graco that recalled about 1.5 million strollers after some children had their fingertips amputated after placing their fingers in the vehicle’s hinges. The CPSC said the strollers pose an amputation and laceration hazard to children when opening or closing the canopy.  The recall involves the Passage, Alano and Spree Strollers and Travel Systems. The products were sold at major retailers including Babies R Us, Toys R Us, Kmart, Sears, Target, and Wal-Mart, among others.

Just months after announcing one of the largest automobile recalls in US history, Toyota is facing a second major recall. ABC News reports that the carmaker issued a recall of 2.3 million vehicles this week to address potential problems with gas pedals that stick, causing cars to suddenly accelerate. In November, Toyota recalled 4.2 million cars because accelerators could become stuck under floor mats and cause vehicles to speed up, resulting in crashes and fatalities. The company says the current recall is separate from last fall’s action, in which floor mats and accelerators were replaced and changed, according to ABC News.

Also recalled this week: the Lysol Steam Cleaning Mop by Conair Corp. The CPSC said the mops pose a burn and laceration hazard to users. According to the CPSC, hot water mixed with Lysol can forcefully spurt out and rupture the housing unit.

At Sokolove Law, we’ll be watching how these events play out.

News developments that we’ll be watching at Sokolove Law:

Not-so-lucky charms: Accessory chain-store  Claire’s and retail giant Wal-Mart will stop selling Chinese-made  kids jewelry after an Associated Press investigation found that the charms and bracelets contained high levels of cadmium. Cadmium is a heavy metal that “can hinder brain development in young children, according to recent research, and is known to cause cancer,” according to the story. The AP also reported that Chinese regulators are investigating the findings and that a U.S. senator has called for hearings into the matter.

A New Orleans courtroom is the setting  for a civil lawsuit that could have a major impact on how hospitals react to disasters and civil emergencies. The suit, filed against Methodist Hospital, alleges negligence of a hospital staff in the days following Hurricane Katrina after the building’s generators failed and a patient died, according to a USAToday  report. Tulane University law professor Edward Sherman told the newspaper the lawsuit could potentially leave hospitals across the country liable if their power gets knocked out by a natural disaster or other calamity.

Recent Recalls

About 2,200 LED light kits imported from China have been recalled because they present a burn or fire hazard, according to the U.S. Consumer Products Commission (CPSC). The watchdog agency says the kits are being voluntarily recalled by Rockler Companies Inc. of Medina, Minn., which sold them at its Rockler Woodworking and Hardware and specialty shops. Defective wiring in the light kits can cause the battery pack to overheat and explode.

Peanut butter, cheese, salsa, and other foods were recalled by Parkers Farm, according to the Federal Food &  Drug Administration (FDA), because they have the potential to be contaminated with Listeria, a bacteria which can cause serious and sometimes fatal infection in young children, frail or elderly people, and others with weakened immune systems. No illnesses have been reported to date. The recalled products were distributed nationwide at a number of stores including Target, Whole Foods, Jewel, Price Chopper, Shop rite, Sam’s Club, Costco, and Safeway.

At Sokolove Law we’re here to protect your rights.

News developments that we’ll be watching at Sokolove Law:

The National Highway Traffic Safety Administration (NHTSA) has received at least 33 complaints from Toyota Prius drivers claiming they have experienced brake failures while behind the wheel of their third-generation hybrid cars, according to a report from TheDetroitBureau.com.  Earlier this year the Associated Press reported that Toyota recalled 3.8 million vehicles after problems with a removable floor mat emerged that could cause gas pedals to stick and lead to an accident.

Outback Steakhouse will pay $19 million to settle a gender discrimination suit that alleged female workers there were denied jobs that led to profit-sharing management positions, says an Associated Press report.  The restaurant chain, which did not acknowledge any wrongdoing, will also appoint a new human resources executive. In addition, the AP says it will hire a consultant to monitor its compliance with the settlement and report back to the US Equal Employment Opportunity Commission (EEOC), which filed the lawsuit on behalf of the women.

Recent Recalls

Dorel Juvenile Group yesterday voluntarily recalled about 213,000 play yards with bassinets due to a potential suffocation hazard posed by the bassinet attachments, according to the U.S. Consumer Product Safety Commission (CPSC). No injuries have been reported. Dorel is working with the CPSC to replace the bassinets due to the potential for a metal support bar of the bassinet to come out of the fabric sleeve and create an uneven sleeping surface, posing risk of suffocation. The products were sold at major retailers as the Eddie Bauer® Complete Care Play Yard and the Safety 1st Disney Care Center™ Play Yard.

Encompass Group announced a voluntary recall of its Thermoflect brand of heat reflecting blankets and other products, reports MedPage Today. A company press release said the recall was prompted after the US Food and Drug Administration (FDA) advised it of a report of an injury to an MRI patient. The products will be relabeled to reflect incompatibility with use in “magnetic resonance (MR) environments.” The company notes there is no evidence that the Thermoflect blanket caused the injury.

Sokolove Law wishes you a healthy and happy New Year.

News developments that we’ll be watching at Sokolove Law:

CNN.com reports that Pentagon health officials now say that some troops exposed to military burn pits could develop long-term health problems, in a shift from previous statements on the matter. Military officials say that exposure to burn-pit smoke combined with other factors such as pre-existing conditions or genetic factors could lead to longer-term health effects, according to CNN.com.  Burn pits are used by the military on some bases in Iraq and Afghanistan.

Military contractors will find it difficult to enforce mandatory arbitration clauses in their employment contracts as a result of a provision in a newly signed law, according to a post at The Blog of Legal Times (BLT). BLT says the provision was tucked into the 2009-10 spending bill for the U.S. Department of Defense, which President Barack Obama signed into law last weekend. Contracts and subcontracts under $1 million are exempt from the provision.

Recent recalls

More than 114,000 pounds of shelled hazelnuts have been recalled after the Food and Drug Administration found salmonella during a routine sampling in a nut-processing plant in Oregon, according to an article in The Oregonian. No illnesses have been reported so far, but salmonella can cause serious and sometimes fatal infections in young children, frail or elderly people, and others with weakened immune systems, according to the recall notice. Recalls have been issued by Willamette Shelling, Willamette Filbert Growers, Kunze Farms, Evonuk Oregon Hazelnuts, Whole Foods, and Harry and David.

Have a safe holiday. Count on Sokolove Law to protect your rights.

News developments that we’ll be watching at Sokolove Law:

Shop smart: Consumers should keep their eyes peeled for dangerous toys as they wrap up their holiday shopping, according to U.S. Customs and Border Protection officials. The Associated Press reports that officials also said shoppers should be on the watch for products that violate trademark or patent laws. Yellow toy ducks with lead paint, counterfeit MP3 players, and black toy guns without markings to show they are fakes are just some of the items intercepted by authorities this year, says the AP.

A toxic flame retardant used in television sets and other products will be phased out by 2013 in deal struck by federal regulators with the US manufacturers of the chemical, according to an article in the Los Angeles Times.  The retardant, known as deca, is a polybrominated diphenyl ether (PBDE). PBDEs are used in the manufacturing of a number of products including electronic equipment, mattresses, cars, and buses.

Recent recalls

P&G is voluntarily recalling some of its cold and flu medicine. Consumers who bought Vicks DayQuil Cold & Flu 24-Count LiquiCaps Bonus Pack should stop using it because the product does not contain a child-resistant backing for the blister packs in the box, despite label statements that the product is in child-resistant packaging. No accidental ingestions by children have been reported with this product.

Sokolove Law urges you to stay safe during the holidays.

News developments that we’ll be watching at Sokolove Law:

Oil giant BP was ordered to pay $100 million in damages to contract workers after a federal  jury found that the company exposed the workers to toxic substances at its Texas City oil refinery in 2007, writes the Houston Chronicle. The story says that the plaintiffs alleged exposure to carbon disulfide while working on two refining units. BP said it will appeal the decision.

Tough new rules regarding the use of anti-psychotic drugs are being sought in the wake of a recent Chicago Tribune investigation that found the medications were sometimes used to “chemically restrain” elderly patients in Illinois nursing homes.  The Tribune reports today that health advocates are urging Gov. Pat Quinn’s Nursing Home Safety Task Force to target the problem.

People with pacemakers should think twice before undergoing an MRI scan.  ScienceDaily reports that FDA researchers have found that MRI scans may cause certain cardiac pacemakers to inadequately stimulate a patient’s heart due to the magnetic pulses from the MRI mixing with the electronic pulses from the pacemaker. This lack of stimulation could create a potentially dangerous situation for these patients, according to the article.

Industrial launderer Cintas has agreed to pay $6.5 million to settle a class action lawsuit alleging that it failed to pay a living wage to some of its laundry workers, writes the Associated Press. The tentative settlement provides $3.3 million in back wages and interest for more than 500 Southern California Cintas laundry workers at the company’s Ontario, Pico Rivera, and Whittier locations, according to a Workers United/SEIU press release. Cintas doesn’t admit wrongdoing in the settlement, says the AP.

Recent Recalls: The U.S. Consumer Product Safety Commission (CSPC) and the National Highway Traffic Safety Administration announced that Dorel Juvenile Group is voluntarily recalling about 477,000 Dorel infant car seat/carriers. These carriers were also sold under the Safety 1st, Cosco, Eddie Bauer, and Disney brands. Dorel said it has received 77 reports of the carrier handle fully or partially falling off. At least three injuries to infants have been reported, including a head injury, bumps, and bruises. The product can still be used as a car seat when properly installed, according to the CSPC.

We’ll be watching these developments here at Sokolove Law.