Automotive Lawsuits

Automotive Litigation

If you are looking at buying a new car or truck, one of the first things you should do is research the automotive lawsuits filed against manufacturers and dealers. By finding out who has been hit, you can protect yourself. But if you want to find out about the typical lawsuit types, you need to understand patents. Not every vehicle manufacturer or dealer is protected by patents; therefore, you need to familiarize yourself with the top nine automotive dispute risks.

The number one automotive patent lawsuits is infringement lawsuits.

A common suit, this claims that another company’s automotive technology infringes on a manufacturer’s patent. Other top suits include designs and logos infringing on others’ copyrights, design cloning and competitor cloning, and product creation and cloning. In addition, defective products causing injury or property damage are also popular dispute risks.

The second most common lawsuit type is the class action lawsuit.

This is when a group of people who bought a defective car, truck or SUV from a class and sue the carmaker or dealer responsible for selling them a faulty car. In addition to the cost of repair, they receive compensation for other losses such as loss of work wages and other financial hardships suffered by the class.

The third lawsuit type is vehicle recalls. Automotive litigation challenging vehicles recalls comes from both the manufacturer and the dealership.

There are a number of reasons why vehicle recalls occur, such as defects, safety concerns and driver error, but many times there is a vehicle that is defective and must be recalled in order for the company to recoup their losses.

The fourth risk is breach of warranty.

Automotive lawsuits filed for breach of warranty stem from any business practice, from improper maintenance to fraudulent billing and non-returning vehicles. Additionally, defective or dangerous equipment may be attached to a vehicle and require the expense and hardship of bringing the vehicle into use once again. These lawsuits are often very serious because of the wide impact they have on an automaker’s reputation and their ability to make a profit.

Lastly, many automobile lawsuits involve a class action lawsuit.

Class action lawsuits allow a large number of people to band together to file suit against a large company who they feel has acted in a negligent manner. Because the number of cases filed under this category is usually quite large, the companies sued rarely win if they do not sue sufficiently. However, sometimes the defense attorneys’ attempt at a class action can lead to a significant settlement or judgment against the defendant, which could spur on new advances in automotive litigation. The new developments in the area of automotive litigation may stimulate more suits for years to come.

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