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| | Allstate Sues Toyota For Subrogation Claims Related To Sudden-Acceleration Issues By Lonce LaMon - October 10, 2010Allstate Corporation sued Toyota Motor Corporation in a suit filed on October 1st in Los Angeles Superior Court for 3 million dollars in compensation for about 270 claims Allstate has paid out since January of 2007.
The suit charges that certain of Toyota's cars and trucks have a defect that causes sudden, uncontrolled accelleration as well as defective electronics and the absence of a fail-safe, such as a brake-to-idle override system.
Allstate spokeswoman Christina Loznicka said the suit was "a last resort" taken after subrogation negotiations failed out of court. It appears to be the first subrogation suit against Toyota related to sudden acceleration.
Celeste Migliore, a Toyota spokeswoman, said she and Toyata had not yet seen the Complaint, but that "the unfounded allegations in this suit have no basis."
Other insurers are currently in subrogation negotiations with Toyota for sudden-acceleration claims. Phil Supple, spokesman for State Farm, said it first sent a letter to Toyota in 2004, asking the automaker to assume responsibility for accident claims that may have resulted from defects in its vehicles. Farmers Insurance said it is also seeking reimbursement on several such claims.
Meanwhile, Toyota held a press briefing Monday to detail its latest progress in fulfilling the more than 11 million recall notices it has issued in the last year, most to resolve sudden-acceleration issues.
Since early 2010, Toyota dealers have completed 1.8 million repairs to fix sticking pedals and 3.1 million repairs for pedals that can get trapped in floor mats, and have installed new software on 128,000 vehicles that were recalled for braking problems. The automaker said 1.3 million of the cars it had repaired were subject to both the sticking pedal recall and the floor mat recall.
Complaints to Toyota about sudden acceleration have fallen 80% since April, when they reached 800 a week, the company said. The automaker said it is currently registering 150 such complaints a week.
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