Skip to main content
Quinn Emanuel Trial Lawyers (Quinn Emanuel Urquhart And Sullivan, LLP)
Balance Legal Capital and Quinn Emanuel Trial Lawyers

Toyota Class Action

Relating to certain Hilux, Fortuner & Prado diesel vehicles

The Toyota class action claims compensation (money) for defects in Toyota Hilux, Fortuner and Prado vehicles with a 1GD-FTV or 2GD-FTV diesel engine acquired between 1 October 2015 and 23 April 2020 in Australia (Relevant Vehicles).

On 6 November 2024, the High Court of Australia delivered an important judgment in favour of the applicants (and Group Members) in this class action.

The High Court upheld an appeal filed by the applicants (on behalf of Group Members) from an earlier judgment of the Full Court of the Federal Court of Australia and dismissed Toyota’s appeal from the Full Court’s judgment.

The following key findings were not challenged on appeal to the High Court and remain binding on the applicant, Group Members and Toyota:

  • The Relevant Vehicles were not of acceptable quality because they were fitted with a defective diesel particulate filter (DPF) system;
  • Toyota engaged in misleading or deceptive conduct in connection with marketing and selling the Relevant Vehicles; and
  • the value of the Relevant Vehicles at the time they were initially supplied was reduced because of their defective DPF systems.

However, the High Court held that in assessing the amount of damages (money) for the reduction in value of the Relevant Vehicles at the time of their supply that eligible Group Members are entitled to be paid, it is necessary to take into account the fact that, by the time of trial, an effective repair for the defect existed.

Given this, the High Court has returned the matter to the trial judge, Justice Lee, for his Honour to reassess the amount of damages (money) for reduction in value that eligible Group Members are entitled to be paid, taking into account the fact that, by the time of trial, an effective repair for the defect existed.

Importantly, the High Court also found that Group Members who have sold (or who sell) their Relevant Vehicle are no longer entitled to receive damages for reduction in value under section 272(1)(a) of the Australian Consumer Law.  Accordingly, if you sell your Relevant Vehicle, you will lose any entitlement to reduction in value damages that you may otherwise have under section 272(1)(a) of the Australian Consumer Law.  However, these Group Members may still be entitled to receive money to compensate them for:

  • any loss or damage they suffered because of the misleading or deceptive conduct which Toyota engaged in in connection with marketing and selling the Relevant Vehicles; and
  • any reasonably foreseeable consequential losses they suffered as a result of the Relevant Vehicles not being of acceptable quality.  These losses might include any excess GST, stamp duty, luxury car tax and/or financing charges Group Members paid as a result of having overpaid for their Relevant Vehicles and any income Group Members lost as a result of having to take time off work to have the DPF system in their Relevant Vehicle serviced, inspected or repaired.

Further information about the High Court’s judgment and next steps is set out in a group member update accessible here, while a copy of the High Court’s judgment is accessible here.

IMPORTANT: All Group Members who wish to receive damages in the Toyota Class Action must register their interest in doing so on the Group Member Portal (managed by Deloitte) by clicking the ‘Register for Compensation’ button below (including those Group Members who previously subscribed for updates on this website).
Group members who have already submitted their registration forms do not need to do anything else at this stage.

You may also read more about the legal action by scrolling down or reading our FAQs.

Overview

Quinn Emanuel is conducting a class action in the Federal Court of Australia against Toyota Motor Corporation Australia Limited (Toyota).  (The Toyota class action was formerly conducted by Gilbert + Tobin, but is now being conducted by Quinn Emanuel after the solicitor conducting the class action on behalf of the applicants and group members, Matt Mackenzie, moved from Gilbert + Tobin to Quinn Emanuel in August 2024).
The Toyota class action claims compensation (that is, money) for defects in Toyota Hilux, Fortuner and Prado vehicles with a 1GD-FTV or 2GD-FTV diesel engine acquired between 1 October 2015 and 23 April 2020 in Australia (Relevant Vehicles).
On 16 May 2022, the Federal Court of Australia delivered an important judgment in favour of the applicants and group members (Primary Judgment). The Court found that the Relevant Vehicles were not of acceptable quality because of their defective DPF systems and that their value at the time of initial supply was thereby reduced by 17.5% (measured against Average Retail Price). The Court also held that Toyota engaged in misleading or deceptive conduct in connection with marketing and selling the Relevant Vehicles.
The primary judge held that eligible group members were entitled to be paid money to compensate them for the reduction in value of the Relevant Vehicles and for the excess GST group members paid as a result of acquiring their vehicles at prices which were higher than the true value of those vehicles.
On 10 June 2022, Toyota lodged an appeal from the Primary Judgment. The appeal was heard in the Full Court of the Federal Court of Australia from 14 to 16 November 2022.
On 27 March 2023, the Full Court of the Federal Court of Australia delivered judgment in respect of Toyota’s appeal from the Primary Judgment. The Full Court confirmed the primary judge’s findings that the Relevant Vehicles were not of acceptable quality because of their defective DPF systems and that their value at the time of initial supply was thereby reduced. The Full Court also confirmed the primary judge’s findings that Toyota engaged in misleading or deceptive conduct in connection with marketing and selling the Relevant Vehicles.
However, the Full Court found that the amount of the reduction in value was 10%, rather than 17.5% as found by the primary judge. The Full Court also held that it is necessary and appropriate to take into account the fact that Toyota developed an effective fix for the defect in May 2020 and began offering it for free after the Relevant Period.
In April 2024, the High Court of Australia heard appeals filed by both the applicants and Toyota from the Full Court’s judgment.

On 6 November 2024, the High Court of Australia delivered an important judgment in favour of the applicants (and Group Members) in this class action.

The High Court upheld an appeal filed by the applicants (on behalf of Group Members) from an earlier judgment of the Full Court of the Federal Court of Australia and dismissed Toyota’s appeal from the Full Court’s judgment, finding that:

  • Group Members who are entitled to receive damages for the reduction in value of their Relevant Vehicles at the time of supply resulting from the vehicles’ defective DPF systems do not lose that entitlement merely because an effective fix for the defect now exists;
  • the Full Court should not have reduced the trial judge’s assessment of this reduction in value from 17.5% to 10%;
  • in assessing the amount of damages for reduction in value that eligible Group Members are entitled to be paid, it is necessary to take into account the fact that, by the time of trial, an effective repair for the defect existed.

The High Court has returned the matter to the trial judge, Justice Lee, for his Honour to reassess the amount of damages (money) for reduction in value that eligible Group Members are entitled to be paid, taking into account the fact that, by the time of trial, an effective repair for the defect existed.

The steps which remain to be taken to determine Group Members’ claims in this class action are described below under the section titled “Next steps”.

Further information about the High Court’s judgment and next steps is set out in a group member update accessible here, while a copy of the High Court’s judgment is accessible here.

Read the court documents

Who is eligible?

You may be a group member and able to claim money from Toyota in the event the class action is successful if you:

  • acquired (including by way of purchase, exchange or taking on lease, or on hire-purchase) one or more models of Toyota motor vehicle in the Hilux, Fortuner and Prado ranges fitted with a 1GD-FTV engine or 2GD-FTV engine;
  • acquired the vehicle between 1 October 2015 and 23 April 2020;
  • did not acquire the vehicle in an auction;
  • did not acquire the vehicle for the purpose of re-supply; and
  • acquired the vehicle from a Toyota dealership or other retailer, including second-hand through used car dealers, or from any person who directly acquired the vehicle from a Toyota dealership or retailer.

How much does it cost?

It doesn’t cost you anything to be a part of the Toyota class action.

An experienced litigation funder called Balance Legal Capital (Balance) is currently funding the case. Group members are not, and will not be, responsible for any “out of pocket” legal costs by remaining as group members in this class action or by signing up.

Next steps

Following the delivery of judgment by the High Court of Australia on 6 November 2024, the primary steps which remain to be taken in this class action are to:

  • calculate the amount of damages (money) for reduction in value which eligible Group Members are entitled to be paid in accordance with the High Court’s judgment;
  • determine the consequences of a Group Member having Toyota’s DPF repair applied to their Relevant Vehicle (which may impact upon the Group Member’s entitlement to be paid damages for reduction in value under section 272(1)(a) of the Australian Consumer Law); and
  • establish and implement a process by which:
      • each Group Member’s eligibility to be paid damages for: (1) reduction in value; (2) loss or damages suffered because of Toyota’s misleading or deceptive conduct; and/or (3) reasonably foreseeable consequential losses, can be determined;
      • the amount of money eligible Group Members are entitled to be paid can be calculated; and
      • that money can be paid to eligible Group Members.

The class action has been listed for case management on 29 January 2025.  It is anticipated that at that hearing, orders will be made providing for steps to be taken to prepare the class action for a hearing at which the matters outlined above can be determined.

A further update will be posted on the ‘update’ page of this website and on the Group Member Registration Portal following the January 2025 hearing.

Further information

You can find more information on the Toyota class action and how to participate in the Frequently Asked Questions.

Funded by

Balance Legal Capital

Visit Website
Prosecuted by

Quinn Emanuel Urquhart & Sullivan

Visit Website

IMPORTANT: Group Members who have previously subscribed for updates on this website still need to register their interest to receive compensation on the Group Member portal by clicking 'Register Now'

Register Now
X