The automotive firm is facing a class action in the Federal Court for those who purchased Hilux, Fortuner and Prado vehicles between October 2015 and April 2020 that had defective diesel particulate filters.
While Toyota has offered to repair these defects, it will argue in an upcoming trial that owners who opt to have their cars fixed cannot be compensated for any reduction in the value of their vehicles.Â
During a hearing on Wednesday, Justice Michael Lee raised concerns about "entirely misleading" communications sent in October 2024 which said the repairs would be free of charge.
A judge raised concerns about Toyota's "misleading" communications saying repairs would be free. (HANDOUT/TOYOTA IMAGES)
Toyota's statements did not reveal the company's lawyers would try to lower the compensation paid to vehicle owners in the court, class action barrister Stephen Free SC said.
While Quinn Emanuel, the law firm behind the class action, flagged with Toyota that the statements were inappropriate, it was sent out anyway, the court was told.
Toyota's barrister Garry Rich SC said his client would promise not to send any further emails or letters to vehicle owners regarding their rights in the class action without approval from the court.
The motor company will have to hand a list of all vehicle owners who received its communications to Quinn Emanuel.
These individuals are set to receive a statement from the Federal Court clarifying the potential legal and financial outcomes of repairing their vehicles.
A spokesperson from Toyota declined to comment further on the revelations made in court on Wednesday.
Justice Lee also heard that individuals who purchased the defective vehicles through private sales will be seeking compensation from Toyota.
A new class action will be filed to bring these claims.
In a judgment delivered in April 2022, Justice Lee rejected arguments by Toyota that issues with the diesel particulate filter system could not be considered defects in the actual vehicle.
While the judge ordered compensation, the auto firm challenged this all the way to the High Court which clarified how damages will be calculated in a decision handed down in November 2024.
The High Court ruled that those who had since sold their vehicles could not be compensated for any reduction in value that the defects caused.
Class action lawyers have issued subpoenas to state and territory vehicle registration authorities to gain information about recent sales and help calculate the total amount owed.
A further trial will be held, likely in 2026, to determine the amount of damages payable by Toyota and consider the company's defence that repaired vehicles do not have reduced value.
Before then, the parties will have further talks to try to settle the case.
The matter will return to court on March 18.
