Is Toyota subject to punitive damages in Toyota Recall Lawsuits?

A: Whether Toyota is subject to punitive damages related to its recent recalls will be taken up on a case by case basis, but there is certainly a good possibility Toyota could get hit for punitive damages if various Toyota Recall Lawsuits go to trial and are decided by juries.

For example, in Texas, a company is liable for punitive damages if a jury determines a company engaged in conduct that:  involved an "extreme degree of risk, considering the probability and magnitude of the potential harm to others," and that the company had "actual, subjective awareness of the risk involved, but nevertheless proceeds with conscious indifference" to the safety of others.  This is also referred to as "gross negligence."  The jury must reach this decision on "clear and convincing evidence."  

Applying this to the Toyota Cases, juries will need to decide did Toyota's conduct in delaying any response to problems with its vehicles that could cause them to speed up out of control involve an "extreme degree of risk"?  What is the probability and magnitude of potential harms with runaway motor vehicles on public roadways?  What is the probability that a recalled car will have a problem with a known defect?  How bad can someone be injured if hit by a runaway car?

Applying the Texas punitive damage requirements to the facts of the Toyota Recall situation, one can see how juries could quite easily find that Toyota engaged in conduct justifying punitive damages.

Toyota certainly understands this, and when considering whether to settle Toyota Recall Cases, the company is going to have to pay a higher amount because of its exposure to a possible finding of punitive damages.