We’re pleased that our friend Donald Ladew from Norman Taylor & Associates is sitting in the guest blogger’s chair today. Thanks, Donald, for this great information about arbitration.
It’s an unfortunate fact that the courts around the country are badly overloaded. The government, which has to fund the court system, loves the idea of arbitration because it saves money and court time. For this reason, lemon laws often include a method for trying to resolve lemon law disputes informally. Quite sensibly, though, the Congress did not deprive consumers of access to the courts. Under Magnuson-Moss (the Federal consumer warranty law), the consumer is not required to accept the result of the informal dispute resolution process. At Norman Taylor & Associates, we are frequently asked about arbitration. We do not recommend it. In California, the consumer may opt out of the arbitration process. Fortunately, many states, New York included, allow the consumer to opt out of the arbitration process.
The problem in any situation requiring arbitration is equality. At the risk of being trite, there ought to be a level playing field. In California, the legislators who created our excellent Lemon Law understood this. In California the Song-Beverly Act does not require the consumer to go to arbitration once all options that might correct the defective vehicle have been tried.
Manufacturers love arbitration. It’s just another step in the gauntlet of delays and deceptions meant to prevent the consumer’s access to the lemon law. The goal of the manufacturer is to make the consumer give up and go away. Any delay favors the manufacturer, who is not the one driving the defective vehicle. The motive is the oldest of them all…or perhaps the second oldest, money. Worst case for the manufacturer is a refund or a replacement. If the manufacturer has to pay the consumer, that is money the corporation cannot earn income from.
Why is the playing field not level?
- The individual doesn’t have the resources or time to devote to the arbitration process.
- The consumer doesn’t have access to legal assistance.
- The consumer cannot afford to bring experts to the arbitration.
- The manufacturer can afford the expense, time and travel necessary to attend the arbitration.
- Consumers are unfamiliar with the law and with the arbitration process. This can lead to awards to the manufacturer even though the facts of the case are relatively clear.
- Even arbitrators are not always lawyers or are they familiar with the lemon law – probably because they are not required to follow that law when issuing their decisions.
What we see most often at the conclusion of arbitration is the award of another repair attempt to the manufacturer. Two or three months may have passed to accomplish this! The consumer attending the arbitration most often has already tried to get the vehicle repaired four, five, or even six times. This is not resolution; this is a gift to the manufacturer.
If there is going to be any gift giving, let the manufacturer do it; they are the one’s most in need of our good will.
At Norman Taylor & Associates our Attorneys are specialists in California Lemon Law. Our goal at Norman Taylor & Associates is to provide the highest quality legal representation possible.
Norman Taylor, the principal attorney, co-authored the first book on California Lemon Law entitled: Lemon Law – A Manual for Consumers. He recently authored his second book on the lemon law entitled: Lemon Law – The Standard Reference Guide, which enjoys distribution and recognition on a national level. His firms have handled over 6,000 lemon law cases forcing vehicle manufacturers to refund well over $100,000,000 for defective goods to consumers.
Recent Comments