The former lawyer for Toyota Motor Corp was ordered by an arbitrator to pay $2.6 million to Toyota for disclosing confidential information after he left the company. According to the court records, the injury lawyer has filed an appeal asking the court to overturn the large verdict on the grounds that it is unconstitutional.
The original suit was filed by Toyota after the automaker alleged that the attorney had violated a confidential agreement by disclosing information about the unintended acceleration of Toyota’s vehicles. The attorney filed a counterclaim alleging defamation and fraud. The arbitrator selected by the federal court, however, sided with Toyota.
The product liability attorney accepted a severance agreement in 2007 and later started his own trial consulting business. The alleged disclosure of confidential information occurred between 2007 and 2008, but the lawsuit gained greater prominence after Toyota began recalling its vehicles.
Toyota has recalled millions of vehicles in the past few years for product issues related to the floor mat and unintended acceleration. Toyota has also been the defendant in major lawsuits, including a class action suit in California, for legal claims surrounding the mass recalls of Toyota cars and trucks.