Class action concerning defective paint on certain Toyota Corollas manufactured between 12 July 2010 and 30 September 2014.

Ms Mary Fabian has commenced a class action against Toyota in the Federal Court of Australia in respect of peeling paint on certain Toyota Corollas.  William Roberts Lawyers is prosecuting the class action. Omni Bridgeway (Omni), a litigation funder, has agreed to provide funding for the costs of the class action pursuant to a funding agreement.

This class action makes claims on behalf of consumers (Affected Consumers) who were supplied with a Toyota Corolla on or after 1 January 2011 that was (Affected Toyota Corollas):

• manufactured between 12 July 2010 to 30 September 2014 (limited to certain body shapes during parts of this period); and
• painted with factory code 040 white paint (also known as Glacier Pure Super White, Glacier White, Super White, or Super White II).

Background

Toyota is an internationally known manufacturer of motor vehicles, including Affected Toyota Corollas. Affected Consumers have complained of a paint defect in the Affected Toyota Corollas which can cause the paint to peel (Defect).

On 12 July 2022, Toyota Australia released a Media Statement which referred to vehicles including the Affected Toyota Corollas and relevantly described the Defect as follows:

“The condition involves specific factory-applied white paint colour (colour code 040) and may occur when sunlight/ultraviolet exposure over time degrades the adhesion between the factory-applied paint primer coat layer and the base metal electrodeposition layer, causing paint to peel from the metal body panel.”

What compensation will be claimed?

In the class action, it is alleged that the Defect breaches the guarantee as to acceptable quality pursuant to section 54 of the Australian Consumer Law and that Toyota is liable to compensate Affected Consumers for loss and damage caused by the breach. This includes damages for the reduction in value of the Affected Toyota Corollas, other reasonably foreseeable losses, and damages for distress and disappointment. If the Defect has already appeared on an Affected Toyota Corolla, that compensation could include the cost of repairing the Defect.

Who will be eligible to participate in the proposed class action?

You may be eligible to take part in the class action if you were supplied with or purchased an Affected Toyota Corolla on or after 1 January 2011. You may still be eligible even if the paint on the Affected Toyota Corolla has not peeled.

Affected Consumers will include anyone who:

• Purchased (including via a lease) an Affected Toyota Corolla either as new (i.e. from a dealer) or second hand.
• Owned an Affected Toyota Corolla but has since sold it.

The class action is brought on an ‘open’ basis – that is, on behalf of all Affected Consumers.

How much will it cost me to participate in the class action?

The class action is being funded by Omni on a “no win, no pay” basis in accordance with the terms of its funding agreement or terms imposed by the Court. If the class action is successfully resolved and there is a recovery of compensation, Omni will be entitled to reimbursement of the costs it has spent plus a commission from such recovery only.

There are no ‘out of pocket’ costs for class members to pay. Class members do not have to pay anything if the class action is unsuccessful, as Omni agrees to pay any legal costs that might be awarded to Toyota.

How can I find out more?

If you would like to find out more about this class action (including whether you will be eligible to participate) or would like to sign up, please contact Omni first. You can do by clicking the button below that will take you to Omni’s website

Omni will be able to provide you with further information, including responses to Frequently Asked Questions. If it turns out that you have any questions of a legal nature, Omni is likely to refer those to us and we can assist you with them.

Due to the large number of class members, we expect a large volume of enquiries. We apologise in advance for any delay that you might experience. Omni can also be contacted by email at toyota@omnibridgeway.com, or by telephone on 1800 313 164.