Leased Vehicle Lemon Law in Hawaii

Hawaii Lemon Law covers new, leased passenger vehicles, SUVs, vans, and trucks under 10,000 pounds. In order to be considered a "lemon," the leased vehicle must meet the following requirements:

• Does not conform to the manufacturer's express warranty
• Has substantial defects affecting the use, safety or value of the vehicle
• Has manufacturer's defects that occurred during the first two years from the delivery date, the first 24,000 miles on the odometer, or before the express warranty expired (whichever comes first)
• Has been taken in one time for a defect that could cause death or serious bodily injury; has been taken in for the same defect three times; or the vehicle has been in for service for a cumulative total of 30 days for a number of unrelated defects
• After the dealer has tried to repair the vehicle the required number of times, you have notified the manufacturer via certified mail and the manufacturer has had the opportunity to make a final repair attempt
• The vehicle is used primarily for personal, family, or household purposes; the vehicle is individually registered but used for business purposes and for personal, family, or household purposes; or the vehicle is owned or leased by a business that has purchased or leased no more than one car per year, and that is used for household, individuals, or personal use in addition to business use

Under Hawaii Lemon Law, you must notify the manufacturer of the problem with your vehicle after you have met the requirements for repair attempts, and give the manufacturer the opportunity to fix it one last time.

Wherever you are in the Lemon Law claim process, it is 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.

However, if you decide to go it alone, before you are eligible to file a Lemon Law claim in court, you must also file a request for arbitration with the State Certified Arbitration Program (SCAP). You must file the request within one year after the Lemon Law rights period expired. A link to the Demand for Arbitration form can be found here.

You must complete the form, and include three copies of each work order applicable to the problems with your vehicle as they relate to the Lemon Law; your sales contract or lease; the applicable manufacturer's warranty for your vehicle; your notification letter to the manufacturer and the return receipt showing the date the manufacturer received your letter; and the statement of consumer's rights under Hawaii's Lemon Law that you received when you purchased or leased your vehicle. You must also enclose a check for $50. If your claim is successful, your application fee will be refunded.

If your application is accepted, you will be notified by the SCAP Administrator. The arbitration will be scheduled and the arbitrator's decision will be due within 45 days. Once your application is accepted, the manufacturer has the right to inspect your car, test drive your vehicle, and use diagnostic equipment on it. Unless you authorize it, though, the manufacturer should not make another repair attempt.

Once your case has been accepted for state arbitration, the manufacturer will be notified and has 30 days to submit its paperwork. The SCAP Administrator will schedule a hearing, and you will receive at least five days notice via certified mail.

An arbitrator who is trained and experienced in dealing with Lemon Law claims 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. You can bring and question witnesses. You should bring your vehicle to the hearing unless it is inoperable or unsafe to drive.

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; proof that the manufacturer has had the opportunity for one final attempt at repair; 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 must also decide if you want a binding or non-binding arbitration. If you decide you want a binding arbitration, neither you nor the manufacturer can appeal the arbitrator's decision in court. Under non-binding arbitration, either you or the manufacturer can ask for a trial, but the request must be made within 30 days of the arbitrator's decision. If the side that asks for the trial does not improve its position by at least 25%, that side has to pay trial costs and attorney's fees.

After the hearing, the arbitrator must issue a decision within 45 days. If the arbitrator decides in your favor, the manufacturer has 30 days to comply with the decision (or, in the case of non-binding arbitration, request a trial). The arbitrator may give you the choice of a replacement vehicle or a refund, which can include:

• Down payment
• Net trade-in
• Monthly payments made as of the date of the hearing
• Collateral charges, such as dealer charges, dealer-installed items, and extended warranty
• Incidental charges, such as towing, alternate transportation, and repair charges

The amount of the refund may be reduced by a deduction for your use of the vehicle, which is calculated by dividing the mileage at the last repair attempt by 1,000, and multiplying that amount by 1% of the purchase price.

In addition, your lease will be terminated, with no early termination penalties.