Toyota appeals $2 billion class action ruling
A class action by owners of certain HiLux and Prado vehicles against Toyota has received wide coverage in the general media. However, Toyota has a global reputation of being highly litigious and has already said it will appeal the Court’s ruling, so Class Action Members: don’t spend the money yet!
On 16 May 2022, the Federal Court of Australia made orders giving effect to the judgment delivered on 7 April 2022. A copy of the Court’s orders is accessible here.
Court’s orders in respect of damages
Under the Court’s orders, eligible Group Members are entitled to receive:
An amount of money equal to 17.5% of the average retail price of their vehicle (when new), less any amount by which the average retail price of their vehicle exceeds the price the Group Member paid to acquire the vehicle (‘reduction in value damages’)
An additional amount of money equal to 10% of the amount of the Group Member’s reduction in value damages (‘excess GST damages’);
Plus interest on the above amounts.
The representative applicant was awarded $18,401.76, which included $7474.59 for the reduction in value of its Toyota Prado and a further $747.46 for the excess GST it paid to acquire the vehicle.
In June 2022, Group Members were sent a notice issued by the Federal Court of Australia that explained how they could register their interest to receive any money to which they are entitled under the judgment.
In response to that notice, Group Members need to register their interest to receive any money to which they are entitled under the judgment. Group Members who do not register will not receive money to which they may otherwise be entitled under the judgment.
Toyota has appealled the Court’s judgment. If this appeal is successful, you may lose your entitlement to receive money under the judgment/or the amount of money to which you are entitled may be reduced.
However, the process for working out your entitlements will proceed notwithstanding the appeal. As such, it is in Group Members’ interests to register to receive money under the judgment, regardless of Toyota’s appeal. Group Members who do not register will not receive money to which they may otherwise be entitled under the judgment.
Litigation funder supporting the Toyota class action, Balance Legal Capital, intends to fund the applicants’ defence of any appeal by Toyota.