Toyota to fight class action over peeling paint on ageing Corollas

Hundreds of Toyota owners could be in line for compensation if a class action is successful.

A white Toyota Corolla with some paint peeling and the company’s 2012 media statement. Pictures: Contributed

Toyota Australia says it will vigorously defend a newly filed class action that alleges thousands of its popular Corolla vehicles were sold with a factory paint defect that causes the white finish to peel away under the Australian sun.

The company confirmed this week it has been served with a statement of claim in the Federal Court, targeting specific Corolla models manufactured between July 12, 2010 and September 30, 2014, some of which are now more than 10 years old.

The lawsuit, led by Corolla owner Mary Elizabeth Fabian, claims the factory-applied “colour code 040” paint on affected Corollas fails to cope with UV exposure, breaching the guarantee of acceptable quality under Australian consumer law.

But in a statement, Toyota made clear it intended to contest the allegations.

“Toyota Australia has been served with a statement of claim for a paint peeling class action in relation to certain 2010-2014 Corolla vehicles,” the statement said.

“We intend to defend the claims vigorously.”

William Roberts Lawyers is prosecuting the class action which is being backed by litigation funder Omni Bridgeway on a “no win, no pay” basis.

Sandra Whitta’s white Toyota Corolla showing the paint peeling on the driver’s door. Picture: Contributed

It covers Corollas manufactured between January 2010 and 2014.

Owners may qualify even if the paint has yet to peel but many of the vehicles named in the claim are now more than 10 years old, raising questions about how long after purchase the carmaker can be held liable for alleged factory defects.

Ms Fabian, who bought her Corolla Ascent Sport Hatchback new in 2012 for $27,000, is claiming paint first began lifting from her car’s roof in 2021 and has continued to peel in patches since.

She claims the only proper fix is to strip and repaint the entire vehicle, which would be a costly job.

Court filings cite a July 2022 Toyota media statement acknowledging that sunlight and UV exposure can degrade the bond between the paint layers and the metal, causing peeling on vehicles painted with the popular white colour known variously as Glacier Pure Super White, Glacier White, Super White or Super White II.

Sam Berhe’s white Toyota Corolla with some paint peeling. Picture: Contributed

If successful, the lawsuit could unlock payouts covering repair costs, reduced resale value, insurance expenses and even damages for stress and inconvenience.

But Toyota’s statement signals the carmaker is unlikely to settle quietly, especially given the age of the vehicles now at the centre of the fight.

Owners who join the action won’t pay any upfront legal fees as Omni Bridgeway will cover the costs and would claim a commission only if compensation is recovered.

The case is open to owners who bought affected vehicles through a dealer or private seller, as long as the paint colour and production dates match those named in the claim.

Corolla owner Sandra Whitta joined the action after she had her 2012 Toyota Corolla repainted before she knew about the class action.

“I couldn’t stand it any longer driving around like this,” she said.

“I have an entertainment company doing face painting for kids and just can’t be rocking up like this,” she said.

Toyota has urged concerned owners to contact their local dealer or its Customer Assistance Centre on 1800 869 682 and those who want to join the action can call William Roberts Lawyers on [phone].

A court date for the first hearing is yet to be set.