Pursuing an Iowa Lemon Law Claim

Under Iowa Lemon Law, you must notify the manufacturer of the problem with your vehicle within 24 months of taking delivery of the vehicle, or within the first 24,000 miles on the odometer (whichever comes first). You should send the notification after three repair attempts or after the vehicle has been out of service for a cumulative total of 20 calendar days.

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 file a request for arbitration with the manufacturer's arbitration program (if the program is certified by the state). You can find the contact information for your manufacturer's arbitration program in the paperwork you received when you bought your vehicle.

Within five days of receiving your complaint, the arbitration program will notify you and the manufacturer of your right to an oral hearing.

The Arbitration Hearing

Typically, a manufacturer's dispute resolution process involves an arbitration hearing.

In the hearing, 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.

After the hearing, the arbitrator must issue a decision. The decision must be made within 60 days of receiving your initial request for arbitration. You will receive a written copy of the decision, which will state the reasons for the decision. If the decision is in your favor, you will have 25 days to accept the decision. The decision will also state how much time the manufacturer has to comply with the decision, but that time cannot exceed 30 days.

If the arbitrator decides in your favor, the arbitrator may give you the choice of a replacement vehicle or a refund. If you accept a replacement vehicle, the manufacturer must reimburse you for towing charges and the cost of alternative transportation. Before you receive the replacement vehicle, you must pay the manufacturer for your use of the first vehicle up until the third repair attempt (or the first repair attempt for a serious defect) or to the 20th day that the vehicle was out of service. This payment is calculated by multiplying the mileage by the purchase price and dividing by 120,000. A refund can include:

• The full contract price of the vehicle
• Manufacturer- or dealer-installed options
• Earned finance charges
• Use taxes
• Title charges
• Incidental charges, such as towing charges and alternate transportation

The amount of the refund may be reduced by a deduction for your use of the vehicle up until the third repair attempt (or the first repair attempt for a serious defect) or to the 20th day that the vehicle was out of service. This payment is calculated by multiplying the mileage by the purchase price and dividing by 120,000. The arbitrator's decision is final, but either you or the manufacturer can appeal the decision. If the arbitrator rules against you, you have 50 days to file a lawsuit. If the manufacturer appeals a decision in your favor, it has 25 days after your acceptance of the decision to do so.

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.