A few weeks ago, I wrote about how cynical I was becoming about the sudden SUA syndrome with Toyota and how I found it amazing how quite a lot of these cases involve our more “mature” members of society. I used the story of Miss Myrna Marseilles, 76, who crashed her 2009 Toyota Camry (which was fixed the under the recall program), into the wall of a YMCA.

I inferred in the article that this was simply a case of driver error and nothing more and some people agreed with me. Peregrine Falcon bet $20 that this was down to pedal confusion. 210delray reckoned it had “all the elements of pedal misapplication”. Well, Peregrine Falcon, if anyone took you up on that bet, it’s time to collect. We were right.

The LA Times reports that “more than 100 suits seeking class-action status, as well as at least 50 personal injury cases” against Toyota have been consolidated to a single courtroom, under the jurisdiction of U.S. District Judge James Selna. According to Reuters, the ruling by the U.S. Judicial Panel on Multidistrict Litigation did state that:

We are initially persuaded that the centralized proceedings should eventually include the related personal injury and wrongful death actions

Generally speaking, official prospectus information tends to run on the alarmist side, warning investors of any and all possible problems, regardless of how likely they are to take place. Which is why you rarely see news organizations like Reuters pick up on prospectus warnings, like today’s story on a Volkswagen warning that its merger with Porsche could be scuttled by lawsuits filed by angry hedge funds. Porsche’s notorious “short squeeze” of hedge funds who were speculating on VW stock in the leadup to its planned takeover has drawn lawsuits in several countries which, according to VW’s recent capital increase prospectus, could:

The Detroit News has just published a quote that allegedly comes from a January 16 email from Toyota Motor Sales USA group vice president for environmental and public affairs Irv Miller to “company officials in Japan.” Miller’s quote reads:

I hate to break this to you but WE HAVE a tendency for MECHANICAL failure in accelerator pedals of a certain manufacturer on certain models. We are not protecting our customers by keeping this quiet. The time to hide on this one is over. We better just hope that they can get NHTSA to work with us in coming with a workable solution that does not put us out of business.

As if to confirm that GM’s benefit obligation situation could actually be worse than today’s GAO report lets on, Automotive News [sub] is reporting that the UAW has sued GM over $450m in unfunded healthcare obligations for Delphi retirees. GM promised to fund a $450m Voluntary Employee Benefit Association for Delphi retirees in 2007, and Delphi’s bankruptcy court confirmed the commitment in last October. But, according to the UAW suit:

the UAW made a written demand that the company honor its contractual obligation to make the foregoing payment [last October… but] that UAW demand was rejected and since that time the company has failed and refused to make the contractually required payment.

That obligation apparently was not voided by GM’s bankruptcy, although The General’s spokesfolks have yet to officially comment on the UAW’s suit.

Last evening, U.S. Transportation Secretary Ray LaHood declared he’d be seeking the maximum penalty from Toyota. That’s $16.4m, because “they knowingly hid a dangerous defect for months from U.S. officials and did not take action to protect millions of drivers and their families.” That’s the largest civil penalty the U.S. Department of Transportation has ever sought. According to Reuters, “previously, the largest fine was $1 million against General Motors Co for failing to promptly recall windshield wipers in 2002-2003 model vehicles.” One would think Toyota can pay that out of petty cash. But the matter has Toyota concerned. Plaintiff lawyers are rubbing their hands.

U.S. District Judge Richard Leon approved a $185m settlement between Daimler, the Department of Justice (DOJ,) and the Securities and Exchange Commission (SEC). The Feds had alleged that Daimler violated the U.S. Foreign Corrupt Practices Act (FCPA) by drowning foreign government officials in money and gifts until they relented and ordered Daimler products. According to Reuters, Daimler’s German and Russian units each agreed to plead guilty to two minor counts of violating U.S. anti-bribery laws. Its China subsidiary will be subject to the two-year deferred prosecution agreement as well. That said, the bad boys from Sindelfingen may go forth and sin no more. Except for one niggling detail …

Shanghai is gearing up for the Expo 2010, which is supposed to drive millions of visitors to the sprawling Chinese metropolis from May through October. The whole city is being refurbished. Shanghai’s Hongqiao airport received a spanking new terminal. Shanghai’s Finest don’t want to be left behind.

A divided three-judge panel of the US Court of Appeals for the Sixth Circuit yesterday upheld the imposition of automated tickets on individuals who may or may not have committed any crime. The judges ruled on a case that began when Kelly Mendenhall received a ticket in the mail for allegedly speeding in Akron, Ohio in December 2005. Although the ticket against her was dismissed, her husband, Warner, fought the legitimacy of the Akron ordinance all the way to the state supreme court which, unlike the high courts in Minnesota and Missouri, approved of speed camera use ( view decision).

Last week, we shared with you an ingenious method of the U.S. Department of Justice to contribute to the deficit-afflicted holdings of the U.S. Treasury. The method involves shaking down foreign companies who grease the wheels to get deals in even more foreign lands. Or who even think about greasing the wheels. Caught between European laws and U.S. laws, these companies pay and promise to sin no more.

The city of Guiyang, in China’s southern Guizhou province, decided to crack down on drivers who flaunt the law. Guiyang’s Channel Five TV thought it’s a good idea to do a Chinese COPS-type reality show, called “Rule of Law Frontline.” A cat fight of epic proportions brought the program national attention.

Quick: Which country will have the world’s toughest DUI laws? You won’t believe it.

Ah, the tangled web of automotive high finance. Victor Muller, CEO and largest shareholder of Dutch automaker Spyker Cars said “oops” (or Dutch words to that effect) and reduced his voting interest is Spyker from 34.3 percent to 26.8 percent.

Why? It just dawned on Muller (or his CPAs) that with more than 30 percent he would have had to make a buyout offer for the rest of the shares. After having gobbled up Saab through complex dealings involving Russian money of dubious provenance, being forced to buy out the whole company because of some silly law wasn’t a high priority for Muller.

Rules are rules, so what’s a newly minted tycoon to do?

A federal appeals court ruled yesterday that municipalities in most states may use evidence illegally collected by photo enforcement cameras. The US Court of Appeals for the Fifth Circuit made its decision in the case of Stephen Bell who sued both American Traffic Solutions (ATS), an Arizona-based red light camera operator, and Redflex Traffic Solutions of Australia for violating Texas statutes requiring companies involved in private investigation to obtain a license. The three-judge appellate panel determined that there was no problem with companies offering unlawfully obtained evidence in civil court cases.

Money-wise, the United States is in a bit of a tough spot. Must create revenue wherever it can. From red light cameras to shaking down foreign companies. On Tuesday, Germany’s Daimler AG was charged with violating U.S. bribery laws “by showering foreign officials with millions of dollars and gifts of luxury cars to win business deals,” as Reuters has it. After asking “how much will it take for this to go away?” Daimler plans to pay $185m to settle charges by the U.S. Justice Department and Securities and Exchange Commission.

At long last, police in Harrison, NY, agree with NHTSA findings that “driver error caused the crash of a Toyota Prius in this New York suburb,” says the Wall Street Journal. The converted Harrison police chief would even drive a Prius.

Enforcing laws against victimless crimes is never easy. Limited resources force local governments to constantly assess their law-enforcement priorities, assigning the squad cars and jail beds to the most pressing problems facing their jurisdiction. The problems that don’t make the cut? Unless there’s a revenue motive at play (see: red light cameras, speed cameras), local law enforcement often has little choice but to tolerate the breaking, or under-enforcement of certain laws. Which begs the question: on a scale of, say, murder to marijuana possession, just how bad is speeding?

Over the weekend I penned a screed calling baby boomers to task for embracing retro style over the the values that made the revolutionary cars of their era so revolutionary [editor’s note: there’s nothing like having a carburetor on your 35 year-old motorcycle magically fix itself to inspire faith in old, simple machinery]. The new New Beetle was square in my crosshairs over the weekend, but it’s hardly the only example of boomer retro-madness. Another favorite for nostalgic boomers are the legendary muscle cars that marked the high-water point for Detroit thunder, and this feverish demand combined with limited original runs have run the prices of famous muscle cars into the Barrett-Jackson stratosphere. It’s also inspired a legion of knock-off and replica manufacturers, who see huge money to be made by aligning supply with demand. They, in turn, have inspired a number of huge lawsuits from the original creators of the limited-edition legends. Carroll Shelby’s prolific legal battles against creators of Cobra replicas have given him the reputation of being a guy who never met a buck he didn’t like, and now GM has joined the Shelby legacy, suing Mongoose Motorsports for daring to produced replicas of the 1963 Corvette Grand Sport roadster.

As the avid reader of our cop car chronology and our on-going coverage of crime-buster conveyances knows, that market of 75,000 units a year in the U.S.A. alone is in a bit of a turmoil. The Crown Vic, holder of approximately 70 percent of the fuzz market, is about to be retired. Ford, GM, and Chrysler want to get a bite out of that crime-driven market. Not to forget a little known company, curiously and politically incorrectly named “Carbon Motors.” Since our own Sajeev Mehta directed our attention towards Carbon, it got a little quiet around the formerly Atlanta, now Connersville, Ind. based upstart that wants to build dedicated police-mobiles. Until today.

“If we lose that case, we will lose heavily” said Toyota in Delhi’s High Court. The judges had no sympathy for Toyota’s pleadings. Their decision might impact seriously on Toyota’s plans to market the Prius in 40 countries worldwide. As if Toyota doesn’t have enough problems with recalls and class action suits, now this:

“Leading San Francisco product liability attorney, Mary Alexander states if you or a loved one has been injured or killed due to stuck accelerator pedals, break issues, or steering problems prompted by a defective Toyota vehicle, you may have a product liability claim that would entitle you to compensation for your injuries and damages.”

Last November, Dutch lawmakers approved the first “pay-as-you-drive” tax system in Europe. A GPS gizmo, promptly dubbed “Spionagekastje” (“spy box,”) by the Dutch, was supposed to record where and when people would drive in the land of cheese, tulips, and koffie shops. With the information collected by the mandatory kastje, the Dutch government intended to fleece its motorized citizenry according to distance driven, along with size and engine of the car. That concept immediately launched a discussion in Europe whether other countries should be given the same Dutch treat. The Netherlands won’t be setting a trend in that matter. Dearly beloved, the Spionagekastje is dead.

Black box data in New York and Japan shows that crashing Prius drivers had their feet on the wrong pedals and wrongly blamed their cars.

In Harrison, NY, the NHTSA declared that the cause of the Prius incident was driver error. “Computer data from a Toyota Prius that crashed in suburban New York City show that at the time of the accident the throttle was open and the driver was not applying the brakes,” U.S. safety officials said to Associated Press.

NHTSA said information from the car’s computer systems indicates there was no application of the brakes and the throttle was fully open. The NHTSA “did not elaborate,” says AP, but the conclusions are clear: Someone’s foot was on the gas instead on the brakes.

Private companies that repossess automobiles without the involvement of law enforcement are creating potentially deadly situations, a report released Thursday by the National Consumer Law Center (NCLC) warned. The Boston, Massachusetts-based non-profit legal advocacy group examined the consequences of turning car seizures over to private firms, particularly during the recent economic downturn.

Two days ago, Ed Niedermeyer received a tip from an anonymous tipster that James Sikes, the guy who couldn’t stop his runaway Prius until a cop pulled up next to him and told him to, is, well, a bit exposed.

The tipster pointed out that a James Sikes had also started a business called Adultswinglife, LLC. A look at the phone numbers showed that Adult Swing Life LLC (619) 957-7355 shared the same phone number as the real estate business of Patty & Jim Sikes (619)-957-7355. We left it at that. Times are rough, and one needs to find extra streams of income.

A few hours later, an anonymous poster that went by the name “CincyJazzy” posted on the CBS news website that Sikes “is caught in 2 attempts to defraud his insurance company out of $60K, Just lost his house, and was fired for ‘unethical behavior’, in the middle of bankruptcy, and now this.” No reaction from CBS.

Then, nothing. Until ...

Thanks to the “optics” (if not the reality) of the latest Toyota sudden unintended acceleration scare, the story has new legs just as Toyota and Exponent were hoping to cut them off. But as much as dramatic, cop-calms-killer-Prius headlines keep the Great Toyota Panic alive, so to does the fact that the 89-odd class-action lawsuits filed against Toyota could be worth over $3b to plaintiffs and their counsel. And that’s not counting any of the incidents in which people were actually injured or killed (which are actually relatively rare). No, that $3b+ is going to the truly deserving… and their lawyers.

The supreme court of Missouri sent photo enforcement companies scrambling on Monday after it declared the red light camera administrative hearing process in the city of Springfield to be void. The high court moved with unusual speed, handing down a strongly worded, unanimous decision about one month after hearing oral arguments in the case.

“This is a $100 case,” Judge Michael A. Wolff wrote for the court. “But sometimes, it’s not the money — it’s the principle.”

Think you have it figured out? Hit the jump for the answer…

The industries that profit from photo enforcement are scrambling to convince Florida lawmakers to adopt legislation that will forgive municipalities for installing red light cameras contrary to existing state law. A circuit court judge last week ruled that red light cameras were illegal in the state, following the legal argument presented in a 2005 attorney general opinion. On the day the decision was handed down, an insurance and camera company-backed front group headed by Melissa Wandall, the widow of an accident victim, released new polling data intended to jump-start the legislative effort.

No politician worthy of your vote will pass up on the chance of publicly bashing the heads of foreign corporate types with deep pockets. And so, the Senate will convene its Committee on Commerce, Science and Transportation next Tuesday. They will repeat this week’s grilling until perfectly good Kobe steak is well done and reduced to dog food.

Tuesday’s cast will consist of familiar faces: Ray LaHood will again “go into the weeds” and hold Toyota’s “feet to the fire” until all cars – well, at least those of Toyota, will be “100 percent safe.”

Smooth Yoshimi Inaba, Prez. of Toyota Motor North America will bring his baritone to bear. The congress casting crew was obviously dissatisfied with Akio Toyoda playing the role of the duplicitous villain. He will not be called and can (phew…) go home to Toyota City.

When I met Uwe Gemballa the first time, he looked like he could be the manager of the local strip club down the road: Shoulder long bleach blond hair, a flashy watch, a suit to match the watch, the shirt unbuttoned down to the chest. I then found out that he had brought a Porsche 911, that made upward of 750hp, to a friend of mine, to make it street legal. Gemballa had one of the hottest tuner shops in Germany. His mods to the Porsche Cayenne produced the fastest SUV in the world – at least that’s what Uwe told me. Last I heard from him was some two months ago. He wanted to import Gemballas to China, and could I help him? Then it became quiet. Now I know why.

For those of you who’ve read my work, you’ll know I’m no stranger to controversy. So, this next piece, will be a little, well, dark, shall we say? In the above picture, what do you see? It’s a classic VW Beetle. Nothing bad there. But this particular Beetle has caused a huge amount of grief stateside, followed by controversy. It was hidden under a black cloth and when it came off what people saw at the National Museum of Crime and Punishment was a 1968 VW Beetle, exactly like what you’re seeing. But it wasn’t so much what it was as WHO it was.

We try to cover a lot of the stories in which politics and automobiles intersect, and frankly, most of them are just plain depressing. From biofuel frauds to speed cameras, it seems that motorists as a political class tend to be reactive rather than proactive. Not so in Georgia, where 11Alive reports that a bill is moving through the state legislature that would establish a minimum fine for driving to slow in the passing lane. If there’s a cause that every driver can get behind, this is it. In case you don’t appreciate the depth of annoyance most feel about left-lane bandits, Georgia State Rep. Mark Butler is on hand to explain:

Toyota are facing many lawsuits for unintended acceleration which may have (or not, you never know what law firm is reading this site!) caused the deaths of many people. However, let’s hope Emily Harris doesn’t get litigious.

London’s Daily Express reports that the 19 year old from the UK was refused her driving test, which left her a crying wreck. The reason? The examiner would not go in Miss Harris’s car. It was a Toyota Aygo.

Photo enforcement may not be improving traffic safety in Las Cruces, New Mexico. According to preliminary data presented to the city council on Monday, the installation of red light cameras and speed cameras in March 2009 has thus far failed to produce any statistically significant reduction in accidents. The city’s public works department, in close consultation with Redflex Traffic Systems, did try to argue that the numbers showed the program was worth keeping.

As we fumble towards a more complete understanding of Toyota’s stunning fall from grace, we’ve only uncovered a single class of people who truly stand to benefit from the last several weeks of hysteria: the lawyers, of course. Thanks to Toyota’s deep reserves of cash, every single possible damage incurred in the last several weeks will be picked over for an opportunity to sue the world’s largest automaker, and already the suits have crossed over into the realm of the absurd. Automotive News [sub] reports on latest class-action suit charge against Toyota, which seeks damages from the automaker for diminished resale value and lost use of recalled vehicles. These charges have been filed as class-action suits in “at least 30 states,” and lawyers suggest that the damages could run as high as $2b. Ford paid Explorer owners $500 a piece when it settled similar class-action suits in the wake of its Firestone safety scandal.

The legal angle to the Toyota recall story has been a source of constant amusement, from an early attempt to prevent Toyota from enacting its gas pedal fix, to news today [via Reuters] that at least 30 class-action suits have been filed since the recall began. “This is going to a little cottage industry all of its own,” says Matt Cairns of DRI, the Voice of the Defense Bar, the largest U.S. civil defense attorney association.