NU Online News Service, Oct. 5, 2:50 p.m. EDT

Allstate Corp. has filed a subrogation lawsuit against ToyotaMotor Corp. which seeks compensation for the more than $3 millionthe insurer said it paid out on accident claims related to the automanufacturer's allegedly faulty accelerator pedals and otherdefects.

"Toyota should be held accountable for the financial impact ofthese accidents," said Allstate spokeswoman Christina Loznicka.

Allstate filed the lawsuit in Los Angeles County Superior Courtin an effort, it said, to benefit policyholders.

"If Allstate's subrogation efforts are successful, policyholdersmay receive all or part of their deductible back," Ms. Loznickasaid.

Toyota spokeswoman Celeste Migliore said the company had notseen the complaint but believes the "unfounded allegations in thissuit have no basis."

According to the lawsuit, Allstate alleges the defects which ledto massive recalls by Toyota "were substantial contributing factorsin bringing damage" to the insurer's policyholders and that Toyotaknew about the problems regarding sudden acceleration in itsvehicles for some time.

"Instead of recalling the vehicles and changing their design toimprove safety, [Toyota] essentially hid the problem," Allstatealleges in the lawsuit.

The insurer cited data from Safety Research and Strategies Inc.that shows the sudden acceleration defect in Toyota vehicles is toblame for at least 725 accidents, 304 injuries and 18 deaths.

Mark Bunim, chairman of the mediation firm, Case Closure LLC,said Toyota likely has multiple layers of insurers in excess of itsself-insurance. Allstate must prove Toyota is to blame for each ofthe accidents alleged to have been caused by mechanical problems inToyota vehicles.

"There will be a multiplicity of accident data presented in themediation process to follow," Mr. Bunim said. This is where the twolarge corporations could squabble, as Toyota attempts to dwindledown the accidents alleged to have been caused by vehicle defects,he said.

State Farm sent a letter in 2004 to the National Highway TrafficSafety Administration, pointing out a trend in sudden accelerationin Toyota vehicles.

Since then, the insurer has asked for reimbursement from Toyotaon claims related to the defect but has stopped short of filinglitigation, said State Farm spokesman Phil Supple.

State Farm continues to speak with the auto maker about theseclaims, Mr. Supple said.

On Oct. 4 Toyota updated the media on its efforts to fix thesudden acceleration problem. About 80 percent of the sticking pedalmodifications have been completed on the 2.3 million vehicles thathave been recalled, Toyota said.