Toyota's Arbitration Bid Sputters Out In Acceleration MDL

Law360, Los Angeles (February 27, 2012, 10:18 PM EST) -- A California federal judge on Monday tentatively rejected Toyota Motor Corp.’s effort to compel 20 named plaintiffs in a putative class action over alleged acceleration defects to arbitrate their claims, saying Toyota can’t enforce arbitration provisions in the plaintiffs’ third-party dealer contracts.

“Toyota waived any right it may have had to compel arbitration of 15 of the 20 class representatives’ claims,” U.S. District Judge James V. Selna wrote in a tentative opinion Monday. “As to the remaining five, the court determines that Toyota, as a nonsignatory,...
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