Pursuing a California Lemon Law Claim

Under California Lemon Law, if the manufacturer of your vehicle participates in a state-certified arbitration program, you must request arbitration in order to seek relief (although you can accept or reject the arbitrator's decision). If the manufacturer doesn't participate in a state-certified arbitration program, you must still notify the manufacturer of the problem if your owner's manual states that notification is required. If the manufacturer doesn't participate in a state-certified program, or if you disagree with the arbitrator's decision, you can sue the manufacturer in court.

Whether you go into arbitration or go to court, it's generally in your best interest to have an attorney represent you. After all, vehicle manufacturers have teams of lawyers that do nothing but fight Lemon Law claims. As you consider your options, imagine the difference between going up against a team of lawyers on your own, versus having a Lemon Law attorney speak on your behalf. Also keep in mind that being represented by a Lemon Law attorney won't cost you a dime if you go to court; the law says that the car manufacturer has to pay your attorney's fees in successful Lemon Law claims.

If you decide to go it on your own, you must fill out an arbitration application, which should be in the information that came in your vehicle's glove box, or you can request an application through your manufacturer's state-certified arbitration program. You can either submit all of your supporting documentation in writing, or you can request an oral hearing. The arbitrator may request an inspection and written report on your vehicle's condition by an independent expert at no cost to you. A decision will be made within 40 days after the program receives your application.

The Arbitration Hearing

The arbitrator is trained and experienced in dealing with Lemon Law claims and will preside over your hearing. Both you and a representative from the manufacturer speak before the arbitrator. You will speak first. The attorneys for the manufacturer can question you; when the attorneys for the manufacturer speak, you can question them.

While the arbitration hearing is less formal than an actual court proceeding, you need to come prepared to present your case. You will need the records that outline all of the work done on your car and all of the diagnosed problems; an odometer reading; copies of correspondence with the dealer and/or manufacturer; statements from mechanics or other experts; statements from witnesses; appraisals or estimates of the resale value of the vehicle with its defects; and a variety of financial records. It is also important that you have your records in chronological order and ready to present to the arbitrator in an organized fashion.

You must prove to the arbitrator that the claims you are making are true, and that the defect negatively impacts the use, market value, or safety of the vehicle. It is absolutely vital that you bring proof of each and every point you plan on making. A "he-said-she-said" argument will never result in a ruling in your favor.

You will receive a notification on the outcome of your hearing. Possible decisions include:

• An additional repair attempt
• A replacement vehicle
• A refund of the purchase price
• Reimbursement for towing, car rental, and so forth
• No award

The amount of the monetary reward may be reduced by a deduction for the total mileage on the vehicle. This amount is calculated by dividing the miles drive at the time of the first repair attempt by 120,000, and multiplying by the purchase price.

If you are dissatisfied with the arbitration decision, you can either go to court or, after an additional repair attempt, re-file your arbitration case.

Pursuing Lemon Law Litigation in Court

If you decide to hire a lemon attorney, it's likely that your case will proceed to court. The litigation process is usually divided into several stages, and your lawyer will do most of the heavy lifting for you.

Pre-Litigation

To avoid the delays and expenses associated with litigation, lawyers usually try to resolve most cases before going to trial. If a consumer doesn't have an attorney, most manufacturers don't resolve consumer complaints in the hope that the consumer won't pursue his or her case. Once you hire a lemon lawyer, however, manufacturers understand that they will ultimately be responsible for your attorney's fees, and so many settle cases before litigation even begins.

If a Settlement is Not Reached

If no satisfactory settlement is reached, litigation will begin. Read more.