California lawmakers have made changes to the California lemon law which affect consumers of both new and used cars, boats, RV’s, motorcycles and other major purchases covered by warranties.
Several of the changes affect how the lawyers you hire will handle these cases, and this short article does not discuss those changes in detail. The key changes I am writing about today affect how consumers must pursue or manage their lemon law claims before a lawsuit is filed.
When you believe your car is a lemon or on its way to becoming a lemon, you, the consumer, must notify the manufacturer, in writing, of the issue before filing a lawsuit. Include with any letter you send any work orders you have for the car along with the purchase or lease documents. If you have any other evidence, like photos or a video of the defect, include those as well.
If you hire a lawyer to help you with your lemon law claim, he or she can write the letter for you. Give your lawyer the evidence he or she will need to support your claim with the manufacturer.
I strongly recommend sending these initial demand letters via certified mail. It’s always helpful to have proof not only that you sent the letter, but also that the letter was received by the manufacturer. The certified mail receipt you receive in return will give you the exact date that your letter was received by the manufacturer.
Be specific about what you want the manufacturer to do. If you want a repurchase or a replacement vehicle, specify that in the letter.
Your warranty booklet has the address for sending the letter. Or, if you cannot find it in your warranty booklet, you can also use Google or Chatgpt, with a prompt such as, “address for lemon law demand to General Motors”. You will get the correct address.
Sending your letter to the selling dealer, or to another franchise dealer (i.e. sending your letter to a General Motors dealership instead of sending it to General Motors the manufacturer) does not comply with the new law. You must send your demand letter to the manufacturer. You can cc the dealer if you want to do so.
You must have possession of the vehicle when you send your demand letter to the manufacturer.
What the manufacturer must do once it receives your letter: the manufacturer has 30 days following receipt of your letter to offer you a lemon law remedy of replacement or repurchase. If the manufacturer does not believe your case justifies a repurchase or replacement remedy, the manufacturer can reject your offer, or not respond at all.
Manufacturers often will offer small cash offers just to buy off the consumer and prevent the lemon law lawsuit from proceeding. But, if you demand a repurchase of the vehicle, or a like-kind replacement vehicle, and the manufacturer offers one, you are basically obligated to accept it.
How long does the manufacturer have to complete the repurchase or replacement after it accepts the consumer’s offer: 60 days.
What if the manufacturer doesn’t make an offer, or makes an unacceptably small offer: if the manufacturer does not offer you a repurchase or a replacement within the 30 days, you may bring a lawsuit and you may seek a civil penalty against the manufacturer for up to two times your damages. This usually means two times your purchase or lease price plus any out-of-pocket expenses you have. The California lemon law does not permit recovery of emotional distress damages.
What if the consumer does not send the pre-lawsuit demand letter to the manufacturer: the consumer can still pursue a lawsuit but cannot claim a civil penalty. The remedies available would be a possible repurchase along with any out-of-pocket expenses. There would be no civil penalty and, as above, no emotional distress damages.
I hope this short article helps you navigate the changing landscape of California lemon law.
Copyright © 2024 by Robert F. Brennan, Esq. All rights reserved.