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Toyota Rebuffed by Supreme Court on Prius Brake Lawsuits

The U.S. Supreme Court turned away a Toyota Motor Corp. (7203) appeal that sought to force arbitration of California lawsuits over the brakes in Prius cars.

The justices today left intact a federal appeals court decision that said Toyota couldn’t enforce the arbitration clauses in its dealers’ purchase agreements with customers.

The consumers say the anti-lock brake system in the model-year 2010 Priuses had a defect that made the cars harder to stop, particularly on rough surfaces. The consumers, who don’t allege they were injured, say Toyota failed to resolve the problem in a 2010 recall. They urged the Supreme Court not to hear the appeal.

The case is Toyota Motor v. Choi, 12-1230.

To contact the reporter on this story: Greg Stohr in Washington at gstohr@bloomberg.net

To contact the editor responsible for this story: Steven Komarow at skomarow1@bloomberg.net

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