Toyota Class Action - Frequently Asked Questions

Balance Legal Capital and Quinn Emanuel Trial Lawyers

Frequently Asked Questions

01 | What is a class action?

A class action is a legal proceeding where seven or more people have claims against the same individual or corporation in respect of, or arising out of similar circumstances, such that their claims give rise to a substantial common issue of law or fact. Where these criteria are met (as in the Toyota class action), class action proceedings can be commenced by one or more of those people on behalf of some or all of them.

The class action process is intended to save time and expense and avoids the need for the court to determine common issues of fact or law more than once. It enables disputes and claims involving large numbers of people to be resolved via a single case.

02 | What is the Toyota class action about?

The Toyota class action claims compensation (that is, money) on behalf of Group Members (see FAQ 5) for the reduction in the value of 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) (see further FAQ 4) resulting from those vehicles having been supplied with a defective diesel particulate filter (DPF) system, as well as additional consequential losses resulting from this defect.

03 | What has happened in the class action to date and what is happening now?

Overview

The Toyota class action was commenced in 2019.

Following an initial trial before the trial judge, Justice Lee, in late 2021, judgment was delivered in favour of the applicants and Group Members in 2022 (Trial Judgment).

Toyota appealed the Trial Judgment and this appeal was heard in late 2022 and a judgment delivered by the Full Court of the Federal Court of Australia in 2023 (Full Court Judgment).

Appeals filed by both the applicants (on behalf of Group Members) and by Toyota from the Full Court Judgment were heard by the High Court of Australia in April 2024. In November 2024, the High Court delivered an important judgment in favour of the applicants (and Group Members) (High Court Judgment). The High Court:

upheld the appeal filed by the applicants (on behalf of Group Members) and dismissed Toyota’s appeal; and
returned the class action to the trial judge for his Honour to reassess the amount of damages (money) that eligible Group Members are entitled to be paid in accordance with the High Court Judgment. That reassessment will likely take place in 2025.

Further details about these judgments and the likely next steps in the class action are set out below.

Trial Judgment

On 16 May 2022, the Federal Court of Australia delivered judgment in favour of the applicants and Group Members (Trial Judgment). The Court found that the Relevant Vehicles were not of acceptable quality because they were fitted with a defective diesel particulate filter (DPF) system 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 trial judge, Justice Lee, 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.

Full Court Judgment

On 10 June 2022, Toyota lodged an appeal from the Trial 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 Trial Judgment (Full Court Judgment). The Full Court confirmed the trial 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.

However, the Full Court found that the amount of that reduction in value was 10%, rather than 17.5% as found by the trial judge. The Full Court also held that it was 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.

High Court Judgment

In April 2024, the High Court of Australia heard appeals filed by both the applicants (on behalf of Group Members) and Toyota from the Full Court Judgment.

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

The High Court upheld the appeal filed by the applicants (on behalf of Group Members) and dismissed Toyota’s appeal.

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

the Relevant Vehicles were not of acceptable quality at the time they were initially supplied because they were fitted with a defective 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.

In the appeals, Toyota argued that Group Members were not entitled to be paid damages (money) to compensate them for the reduction in value of the Relevant Vehicles at the time of their supply because Toyota subsequently developed an effective repair for the defect in May 2020. The High Court rejected Toyota’s argument.

The High Court also observed that the Full Court should not have reduced the trial judge’s assessment of this reduction in value from 17.5% to 10%.

However, the High Court held that in assessing the amount of damages (money) 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.

Given this, the High Court has returned the matter to the trial judge 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.

Next steps

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 (money) 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 (money) 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.

Registration remains open

In the meantime, Group Members can continue to register their interest to receive any compensation to which they may become entitled in the Toyota class action. If you think you are a Group Member and have not already done so, you can register your interest here. Group Members who have already submitted their registration forms do not need to do anything else at this stage.

04 | Which Toyota vehicles are affected?

This class action relates to any model of Toyota motor vehicle in the Hilux, Prado and Fortuner ranges fitted with a 1GD-FTV or 2GD-FTV diesel engine which was acquired between 1 October 2015 and 23 April 2020 in Australia (Relevant Vehicle).

An inclusive but non-exhaustive list of Relevant Vehicles can be found here.

If you can’t find your vehicle on this list or if you are unsure whether your vehicle is one of the Relevant Vehicles in the class action, you can register your interest to receive any money to which you may become entitled in the Toyota Class Action here.

By providing the vehicle identification number (or VIN) for your vehicle we will be able to confirm whether your vehicle is one of the Relevant Vehicles in the class action.

05 | Am I a Group Member?

Group Members are people who meet certain criteria. You are likely to be a Group Member in the Toyota class action if you:

acquired a Toyota Hilux, Fortuner or Prado with a 1GD-FTV or 2GD-FTV diesel engine 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 Toyota Motor Corporation Australia itself), including second-hand through used car dealers, or from any person who directly acquired the vehicle from a Toyota dealership or retailer.

If you meet the Group Member criteria, then you are a Group Member automatically and do not need to take any further steps to become one. Group Members will be bound by the outcome of the class action unless they previously took steps to “opt out”.

If you think you are a Group Member and have not already done so, you can register your interest here. Group Members who have already submitted their registration forms do not need to do anything else at this stage.

06 | Do I need to register or sign up to be a Group Member in the class action?

You do not need to register or sign up to be a Group Member in the class action.

Anyone who satisfies the relevant criteria and who has not already opted out of the class action is automatically a Group Member.

However, to receive any money to which you may become entitled in the Toyota Class Action, you need to register your interest in doing so here. Group Members who have already submitted their registration forms do not need to do anything else at this stage.

07 | How much money will I receive in the class action?

The amount of compensation (money) which eligible Group Members are entitled to be paid in the Toyota class action in accordance with the High Court’s judgment (see FAQ 3) has not yet been determined. This question will be determined by the trial judge, Justice Lee, at a hearing likely to be held in 2025.

For context:

the trial judge originally held that the value of the Relevant Vehicles at the time of their initial supply was reduced by 17.5% (measured against Average Retail Price) as a result of the vehicles’ defective DPF systems. For the lead applicant, this amounted to reduction in value damages of $7,474.59 (plus consequential damages of $5,717.06);
in the High Court Judgment (see FAQ 3), the High Court observed that the Full Court should not have reduced the trial judge’s assessment of this reduction in value from 17.5% to 10%, but returned the matter to the trial judge for his Honour to reassess the amount of damages 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.

08 | How do I register to receive any money to which I may become entitled in the class action?

Group Members can register their interest in receiving any money to which they may become entitled in the Toyota class action here.

It is in Group Members’ interests to register. If Group Members do not register, they will not be able to receive any money to which they may otherwise become entitled in the Toyota class action.

09 | What is Toyota’s DPF repair (known as the “2020 Field Fix”) and how do I know if it has been applied to my vehicle?

In May 2020, Toyota developed a repair for the defective DPF system in the Relevant Vehicles. This repair is referred to in the class action as the “2020 Field Fix”.

The 2020 Field Fix is a specific combination of repairs which Toyota has applied to some Relevant Vehicles from around May 2020 onwards to address the DPF issues suffered by those vehicles. The 2020 Field Fix involves:

replacing the diesel oxidation catalyst in the DPF with an updated unit;
introducing a modified additional injector assembly; and
reprogramming the vehicle’s software to remove a cooling pulse and add a ‘soot blow’ function.

DPF repairs and replacements conducted prior to May 2020 are unlikely to have involved the 2020 Field Fix being applied to your vehicle.

Group Members may have received a letter from Toyota in around November 2024, inviting them to take their Relevant Vehicle to a Toyota Dealer to have the defective DPF system in the vehicle repaired. To the best of our knowledge, the DPF repair referred to in that letter is the 2020 Field Fix.

If you register your interest to receive any money to which you may become entitled in the Toyota class action here, we will be able to make a preliminary assessment as to whether the 2020 Field Fix has been applied to your specific Relevant Vehicle.

10 | Will having Toyota’s DPF repair applied to my vehicle effect my entitlement to receive money in the class action?

The consequences of a Group Member having Toyota’s DPF repair (known as the “2020 Field Fix”, see FAQ 9) applied to their Relevant Vehicle for the Group Member’s entitlement to be paid damages (money) for reduction in value under section 272(1)(a) of the Australian Consumer Law have not yet been determined and were not the subject of the High Court appeals (see FAQ 3).

This issue will be determined by the trial judge in a hearing likely to be held in 2025.

While it is ultimately a matter for each Group Member to decide whether or not to take up Toyota’s invitation to have the DPF system in their vehicle repaired, it is important for Group Members to be aware that to date, Toyota’s position in this class action has been that Group Members who have the DPF repair applied to their Relevant Vehicle lose their entitlement to be paid damages (money) for reduction in value under section 272(1)(a) of the Australian Consumer Law as a result of doing so. The applicants do not agree with Toyota’s position and will argue against it at the future hearing referred to above.

11 | I bought my vehicles second hand. Will I receive any damages?

In this class action, the applicants seek damages (money) on behalf of Group Members who acquired their Relevant Vehicle second hand.

In an important judgment delivered in November 2024 (see FAQ 3), the High Court of Australia held that the entitlement to damages (money) for reduction in value under section 272(1)(a) of the Australian Consumer Law passes with ownership of a Relevant Vehicle.

That is, if a Group Member who acquired a Relevant Vehicle new, sells that vehicle to another Group Member, the entitlement to be paid damages (money) for the reduction in the value of the Relevant Vehicle which the first Group Member held, passes to the second Group Member to whom they sold the vehicle.

The consequences of this finding for the claims of Group Members who acquired their Relevant Vehicles second hand will be determined by the trial judge at a hearing likely to be held in 2025.

If you think you are a Group Member and have not already done so, please register your interest to receive any money to which you may become entitled in the Toyota class action here.

12 | If I sell, or have sold, my vehicle, will this affect the money I receive in the class action?

In an important judgment delivered in November 2024 (see FAQ 3), the High Court of Australia held that Group Members who have sold (or who sell) their Relevant Vehicle are no longer entitled to receive damages (money) 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.

The consequences of the High Court’s findings for the claims of Group Members who sell, or have sold, their Relevant Vehicles will be determined by the trial judge at a hearing likely to be held in 2025.

13 | Who is conducting the Toyota class action?

Quinn Emanuel Urquhart & Sullivan (Quinn Emanuel) are the solicitors conducting the Toyota class action and are working with a team of barristers, consisting of Stephen Free SC, Patrick Meagher and Peter Strickland.

Quinn Emanuel took over conduct of the Toyota class action on behalf of the applicants and Group Members from Gilbert + Tobin, 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. Mr Mackenzie continues to conduct the Toyota Class Action at Quinn Emanuel. Future communications about the Toyota Class Action will therefore refer to Quinn Emanuel as the solicitors for the applicants and Group Members rather than Gilbert + Tobin.

14 | Who is Balance Legal Capital?

Balance Legal Capital (Balance) is an experienced litigation funder which is funding the class action. This means that Balance agreed to pay the costs of bringing this class action against Toyota, including to pay the legal costs of Toyota if the class action was unsuccessful, in return for repayment of those costs plus a funding commission, should the class action be successful (that is, if money was recovered from Toyota).

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 (whether or not they signed a funding agreement with Balance).

However, because it funded the litigation, Balance intends to ask the Court to deduct an amount from the damages to be paid to all eligible Group Members. Whether such a deduction can be made and, if so, the amount of that deduction, will be determined by the Court and you have a right to raise before the Court any issues you have in respect of such a deduction. If there is to be a deduction, this will occur before any money is paid to eligible Group Members. Balance does not intend to seek an amount exceeding 25% of the damages to be paid to eligible Group Members (and it may seek a lesser amount if more Group Members register their interest in receiving any compensation to which they may become entitled in the Toyota class action).

15 | Who is Deloitte and what is their role?

Deloitte is one of Australia’s leading professional services firms, and provides audit, tax, consulting, risk advisory and financial advisory services.

Deloitte has been engaged by Quinn Emanuel to provide class action administration and support services, which includes (but is not limited to) deployment of the online Group Member Platform for:

Collection, storage and management of Group Member data;
Group Member registration, claim submission, eligibility and claim assessment; and
Communicating with Group Members regarding the registration process.

16 | What will it cost me to become a part of the Toyota class action?

You do not need to pay any “out of pocket” legal fees.

That is because a company called Balance Legal Capital I UK Ltd (Balance) agreed to pay the costs of bringing the Toyota class action, including to pay the legal costs of Toyota if the action was unsuccessful, in return for reimbursement of those costs plus a funding commission in the event the class action was successful (that is, if money was recovered from Toyota). Because it funded the litigation, Balance intends to ask the Court to deduct an amount from the damages to be paid to all eligible Group Members. Whether such a deduction can be made and, if so, the amount of that deduction, will be determined by the Court and you have a right to raise before the Court any issues you have in respect of such a deduction. If there is to be a deduction, this will occur before any money is paid to eligible Group Members. Balance does not intend to seek an amount exceeding 25% of the damages to be paid to eligible Group Members (and it may seek a lesser amount if more Group Members register their interest in receiving any compensation to which they may become entitled in the Toyota class action).

17 | What if I opted out of the class action?

The Toyota class action is an “open class action” meaning it was brought by the applicants on their behalf and on behalf of other persons who also own or have owned the affected Toyota vehicles (known as “Group Members”). The criteria for Group Members can be found here.

In an open class action, any Group Members who do not wish to participate in the class action must “opt out” of the class action. An Opt Out Notice and Supplementary Opt Out Notice ordered by the Court was previously issued to Group Members, setting out their options for opting out of the class action. A copy is available here.

The deadline for opting out of the class action has now passed.

If you did not opt out by the deadline, you remain a Group Member.

If you opted out by the deadline, you are not a Group Member. You may seek special leave of the Court to opt back into the class action. You should seek independent legal advice should you wish to do so.

18 | What if the warranty applicable to my Relevant Vehicle has expired?

Whether or not your warranty has expired does not impact your ability to participate in the Toyota class action. That is, even if your warranty has expired, provided you satisfy the other eligibility criteria, you are still a Group Member in the Toyota class action.

19 | Does it matter if my Relevant Vehicle was/is financed?

Whether or not you financed the acquisition of your Relevant Vehicle does not impact your ability to participate in the Toyota class action. That is, irrespective of whether you financed the acquisition of your Relevant Vehicle, provided you meet the other Group Member criteria you are a Group Member in the Toyota class action.

Group Members’ entitlements to receive compensation (money) for excess financing costs were not determined at the initial trial but may be determined by the trial judge at a future hearing.

20 | What if I have not experienced any issues with my Relevant Vehicle?

The Federal Court in the first instance, the Full Court of the Federal Court of Australia and the High Court of Australia have each found that all Relevant Vehicles were not of acceptable quality because of their defective DPF systems and, therefore, suffered a reduction in value at the time of initial supply. This was so even if the consequences of the defective DPF system had not yet manifested in some vehicles.