Toyota Can't Arbitrate Hybrid Defect Suit, 9th Circ. Says

Law360, Los Angeles (January 30, 2013, 3:54 PM EST) -- The Ninth Circuit on Wednesday said Toyota Motor Corp. can't compel arbitration in a putative class action over an alleged defect in the braking system of hybrids, affirming a lower court’s finding that Toyota wasn’t a named party on the purchase agreements with arbitration provisions.

Wednesday’s decision echoes U.S. District Judge Cormac J. Carney’s December 2011 order that also found that Toyota had waived any rights to compel arbitration it may have had by “vigorously litigating [the] action in district court for nearly two years.”...
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