Toyota Says Prius Stalling Defect Suit Belongs In Arbitration

Law360 (May 26, 2020, 4:37 PM EDT) -- Toyota has told a California federal judge that two of the seven remaining named plaintiffs in a proposed consumer class action claiming the automaker's hybrid Prius cars were prone to stalling signed away their right to sue when acquiring their vehicles, and that their claims must be pushed into arbitration.

Consumers Stephen Kosareff and Laura Kakish signed lease and purchase agreements, respectively, with valid arbitration clauses that prevent them from bringing consumer protection violation, warranty violation, fraudulent concealment and other claims in court, Toyota Motor Corp. argued Friday.

"The lease/purchase agreements contain conspicuous and explicit acknowledgments of the parties' rights to arbitration...

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