Hyundai loses $10 million lawsuit over destroyed evidence in engine recall

A high-profile legal dispute between Hyundai Motor America and a Pittsburgh auto dealer has concluded in the United States. The court ordered the automaker to pay nearly $10 million following litigation related to the Theta II engine recall campaign. Dealer companies Knight Motors and Doman Auto & Marine Sales purchased 628 used Hyundai Sonatas from model years 2011-2014 at auctions in 2018-2019. These vehicles were subject to a massive recall campaign due to problematic Theta II engines, which were installed in over 1.6 million Hyundai and Kia vehicles.

The dealers sent the cars to official Hyundai dealerships for engine replacements or compensation payments. However, in 2019, Hyundai refused to fulfill all such claims from these companies and even filed a fraud lawsuit against them.

The Allegheny County Court in Pennsylvania sided with the dealers. Judge Philip Ignelzi stated that the automaker's actions represented one of the most serious cases of evidence destruction in his long judicial career.

During the proceedings, it emerged that Hyundai destroyed hundreds of vehicles that could have served as key evidence in the case. Additionally, employee emails related to the investigation were deleted.

The court classified such actions as serious violations of the judicial process. As a result, the dealer companies became entitled to compensation approaching $10 million. This case has become one of the most notable legal conflicts in the automotive industry in recent years.