Toyota SA distances itself from R2.5bn flood lawsuit
KwaZulu-Natal Transport MEC Siboniso Duma says the department is assembling a legal team to fight a R2.5 billion lawsuit linked to the 2022 floods.
Toyota South Africa’s insurer, Tokio Marine and Nichido Fire Insurance, is suing the Transport Department, Transnet, and the eThekwini Municipality over flood damage at Toyota’s Prospecton plant.
Duma met with Toyota SA President and CEO Andrew Kirby following multiple media reports that the company is dragging them to court.
During the meeting, Kirby reassured Duma that Toyota is not funding or benefiting from the legal action, which is being pursued independently by the insurer.
The process, known as subrogation, allows insurers to sue those they believe caused the damage, after settling with their client.
READ: Toyota insurer sues eThekwini over 2022 flood damage
Duma says that during the meeting with Kirby, they agreed to sustain their relationship in the interest of the people of KZN and the country.
"For the record, in our engagement with Mr Andrew Kirby, he pointed out that the litigation proceedings against the Department of Transport, eThekwini Municipality and Transnet SOC Limited are not being facilitated and/or funded by Toyota South Africa Motors.
"He further stressed that Toyota would not benefit in any way from the subrogated recovery action against us. Mr Kirby has emphasised his commitment to work with us to build this province."
Transnet and the municipality have told Newswatch they are aware of the lawsuit.
Transnet says it has filed a notice to defend and won't comment further at this stage.
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