Toyota Can't Force Arbitration In Faulty Acceleration MDL

Law360, Los Angeles (March 12, 2012, 9:32 PM EDT) -- A California federal judge on Monday blocked Toyota Motor Corp.'s bid to compel 20 named plaintiffs in a putative class action alleging acceleration defects to arbitrate their claims, ruling Toyota was not a party in the plaintiffs' third-party purchase and lease agreements.

U.S. District Judge James V. Selna said Toyota had waived its right to compel arbitration with 15 of the 20 class members and may not enforce arbitration agreements with the remaining plaintiffs because the company is nonsignatory on the agreements.

The ruling is a...
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