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Does Toyota Face Tidal Wave or Puddle? Election Pain

Two local lawyers—Mark Robinson and Wylie Aitken—are among the 21 litigating Toyota’s sudden acceleration cases before U.S. District Judge James Selna in Santa Ana. Other local lawyers are avid spectators of the monumental proceedings. Plaintiff lawyer Joe Dunn, a former state senator and former law partner of Robinson’s, speculates that Toyota could seek bankruptcy court protection to limit its payout. Others expect Toyota to weather the legal siege less painfully. Almost everyone agrees that the key to whether the case will be a gold mine for trial lawyers may hinge on whether—or on what terms—Selna consolidates into a class-action lawsuit the economic claims of dealers and owners who contend their Toyotas have lost value because of the highly publicized malfunctions.

Most such complaints are too small to litigate individually but lumped together could pose a potential liability of $1 billion or more and force Toyota into a huge settlement. Aitken, part of the economic damage team, says what’s at stake for the Japanese automaker “is the difference between a tidal wave and a puddle.” (Either way, the higher-profile personal injury lawsuits blaming deaths or injuries on Toyota will be tried individually, although Selna is overseeing a joint discovery process—co-led by Robinson—in order to reduce redundant depositions and the like.) Selna’s decision on the class-action matter is months of documents and motions away. How’s he likely to rule? Guesses are all over the board. Veteran lawyer Tom Malcolm, who until his recent retirement was part of the Jones Day’s team defending Yamaha in personal injury suits against its Rhino off-road vehicle, puts the odds of class certification at 50-50. Aitken says certification is likely, but the devil will be in the details—how Selna defines the class size and what limits he puts on damages … “I can’t often afford to be with this many lawyers,” said Allergan President and master of ceremonies Mike Ball, cracking up a crowd of 450 at the OCBJ inaugural General Counsel Awards at the Hyatt Regency Irvine. (Writeups on the winners in next week’s issue) … John Moorlach doesn’t have an easy election even when he’s running unopposed. The provocative county supe, given a pass by the public labor unions this time around, collected 100% of the vote while stuck in bed: “It’s my turn to experience passing a kidney stone. No election night events for me.” He underwent surgery (lithotripsy) and concluded, “Running for public office is sort of like passing a kidney stone. It’s painful, intense and all-consuming. And, this too shall pass.” Moorlach, who is termed out in 2014, said this “may be my last election victory” … Former Santa Ana Schools trustee Nadia Davis Lockyer advanced to a November runoff for Alameda County supervisor. The wife of state treasurer Bill Lockyer raised $727,000 for the primary, most of it from her hubbie’s war chest.

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Rick Reiff
Rick Reiff
Rick Reiff, a Pulitzer Prize-winning journalist, is editor at large of the Orange County Business Journal. He also is a host and producer of public affairs programs. He has covered Southern California for 34 years in print and on air. He is a four-time Golden Mike winner, three-time Emmy nominee and 2018 recipient of the Orange County Press Club's Lifetime Achievement Award. Reiff has been with the Orange County Business Journal since 1990, serving 10 years as editor. He originated and wrote the paper's popular "OC Insider" column for 15 years.
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