Step One: If you think you may have a “lemon,” check your state’s lemon law. These laws dictate the number of repair attempts, the time the vehicle is out of service and the time limit on initiating a lemon law case.

Step Two: File a Letter of Notification with your car’s manufacturer. The procedure and address should be in your Warranty booklet. From this point on, you will be dealing with the manufacturer and their legal team rather than the dealership.

Step Three: If you get turned down by the manufacturer, your either have to or have the option to (depending on your state law) going through the Informal Dispute Resolution. Some manufacturers work through independent third-party organizations; some states have established their own arbitration procedures for lemon law disputes.

Step Four: If you’re still not satisfied with the Informal Dispute Resolution and haven’t done so yet, hire an attorney who will advise you on the next step. An attorney may be more effect in resolving your issue without going to the final step.

Step Five: File a lawsuit. At this point, you have to hire a lawyer. The manufacturer has a whole legal team, you need proper representation.

Optional Step: At any point along this road, you can consult with or hire an attorney. Fill out the form on this post and we’ll help you locate a lemon lawyer.

If you suspect your vehicle is a lemon, contact us using the form to the right and we’ll help you locate a lemon lawyer.

Okay, here you are. You and your attorney are confident you’ve got a winnable lemon law case but have gotten no satisfaction as you’ve journeyed through all the required steps. Now it’s time to take it to the mat—the civil courts. This may generate a quick settlement; there are still a number of opportunities for the manufacturer to avoid the courts. Here’s what to expect.

• Your attorney files a summons and complaint against the manufacturer.
• Direct communication has now stopped. The manufacturer will now reply through the courts. The company will either settle or deny the claim.
• You have the option of requesting a trial before a jury or a judge (bench trial). Your attorney will probably opt for a jury trial as the panel will be more sympathetic to you than the manufacturer. Prospective jury members are always asked questions before being seated to establish their fairness to both sides. But juries tend to be more sympathetic to the “little guy” who is being victimized by the manufacturer.
• Both sides will agree on a court date. History shows, however, the manufacturer will ask for a number of delays in the hope you’ll give up and go away. Your case may take over a year to actually get into a court room.
• You’ll probably get an interrogatory, which is a list of questions you and your attorney will have to answer. You’ll also be required to turn over copies of all your documentation. If you’re a TV lawyer fan, this is the equivalent of discovery which in criminal cases allows the defense to know all the evidence upon which the prosecution bases its case. In your lemon lawsuit, you’re the prosecution and the manufacturer is defending itself.
• Another step in the discovery process is the deposition. This is an in-person version of the interrogatory and allows the manufacturer’s attorneys to assess your impact as a witness as well as garner as much information as possible. Stay calm, answer only what you’re asked, and review possible questions with your attorney.
• Anticipate at least one settlement conference before your trial date. This is the point at which you need to trust your attorney and his evaluation of your case. The cynical version of these conferences is that the manufacturer will offer you just barely enough to pay your attorney and walk away with a thousand or two in your pocket. They may offer to cover the defective part of your vehicle for the life of the car or offer to buy the vehicle back at blue book value. They will rarely offer to replace the lemon with a new vehicle. It’s your decision to make, but listen to your attorney.
• So, now you’re actually in court. In terms of format, the actual trial is a more formal but follows the same steps of the Informal Dispute Resolutions. Each side presents its case (without time limits imposed in the AutoLine procedure) and has the opportunity to question and rebut the other side’s witnesses. You watch court dramas on television—you know the drill. The composure and factual responses required at the deposition goes double at trial.
• The job of the manufacturer’s attorney is to minimize your vehicle’s defect and not so subtly hint that your case is baseless and you’re going after the manufacturer’s deep pockets. Remember that your case is an extension of state lemon laws. Remember all manufacturers produce a certain percentage of defective vehicles. That’s not at issue. No one can claim to have a 100 percent flawless work product. What is at issue is that the manufacturer is required by law to make it right for the owner of those defects.
• Possible outcomes: You could lose. The manufacturer could be required to repurchase your vehicle which could include the original down payment, trade-in equity, monthly payments, loan/lease payoff—it depends on what is allowed by the state lemon law. The manufacturer could be required to replace the vehicle which usually means the “new” model. Depending on each state law, there will be a mileage offset. In some states you may be eligible for civil penalties awarded if your attorney can prove the manufacturer “willfully” refused to repurchase a vehicle when required to do so. In California, civil penalties could be as high as twice the price of the vehicle.

If you suspect your vehicle is a lemon, contact us using the form to the right and we’ll help you locate a lemon lawyer.

You’ve heard the phrase “he who defends himself has a fool for a lawyer”? That’s more than just a motto for the bar association, it’s a simple truth. Even if you’ve managed to slog through the details of federal and state lemon laws and procedures for Informal Dispute Resolution (IDR) and are sure a court of law couldn’t be much worse, there’s an element of respect the court will give an attorney not to mention how badly the opposing lawyer will wail into you if you don’t have your own representation.

When to Bite the Bullet

You can hire an attorney when you get a negative response to your letter of notification to the manufacturer. The attorney may only write a second letter the manufacturer stating the same information you’ve already included. However, his letter will carry more clout, sending a clear message that you’re serious about your claim and have the tenacity and money to back it up. If the lawyer’s letter gets you the refund or replacement you want, that was a relatively expensive letter, but you’ve saved yourself a lot of time and frustration.

You can hire an attorney before or during the IDR process and will probably benefit from his advice and representation at the hearing. The involvement of your lawyer during the pre-hearing procedures may just be enough to get a settlement from the manufacturer. Auto manufacturers do not want to deal with a civil suit. In most cases, it will cost them more to win a law suit than it would cost to settle at any stage short of trial. And, if you win the case, some state laws require the manufacturer to pay your legal costs. If you’ve gone through all the required steps and not received what you consider an appropriate settlement and have decided to file a civil suit against the manufacturer, you need a lawyer.

How to Find a Lemon Lawyer

Your state’s bar association, referrals from associates and the good old Yellow Pages or Internet Lemon Law websites are all decent sources of lawyers who specialize in automotive or lemon laws. The best case scenario is a close friend who is a lawyer. He may not specialize in lemon lawsuits or even in civil cases, but he’ll know who he’d want representing him in a similar case.

If you live in a small community or sparsely populated area, you may end up with a non-local attorney. The only problem would be travel costs if the case goes to trial. As long as the attorney is licensed to practice in your state, you’re in good shape. An alternative to hiring a lawyer in private practice is to contact consumer advocate groups, departments of your state’s attorney general office and any Legal Aid sources available in your community.

A few things to consider:

• The number of attorneys with the firm isn’t really important, but the fact that there are other attorneys at the same firm who specialize in lemon law is.
• Experience in lemon law cases is important. There are nearly as many legal specialists as there are medical specialties. The laws are complicated and your attorney should know the ins and outs of those laws forwards and backwards. You may have a stronger case for fraud than under the lemon laws. A family attorney or criminal defense specialists won’t have a clue.
• The attorney’s reputation is also important. This is a fairly subjective quality. Those for whom an attorney has won a case will love him; those who lost their case may not. You can research his success rate in lemon law cases, ask his former clients, check with the bar association.
• You should expect a free consultation so the attorney can assess the validity of your case before he commits or you have to pay. This is a good chance to ask questions.

Good Questions to Ask

• How long has the attorney been handling lemon law cases?
• What is the fee structure, is it negotiable? You can check other sources to determine if the fees are reasonable.
• Can he give you references?
• What is the range of outcomes for your case? Be careful if he guarantees a win.

Your decision to hire a specific attorney may come down to gut reaction. Does he seem straightforward? Does he take time discussing your case or do you feel like he’s got someplace more important to be? If you ask for clarification of some complex areas of the law or procedure, does he explain the issue in a way you understand? You want a smart lawyer but you also want to be treated with respect.

Now What?

Bring all your documentation to your initial meeting with the attorney. The attorney will base his decision on the validity of your case from this documentation. Don’t leave anything out of this discussion and tell the truth, even if it may put you in a bad light. If you lose, you foot the bill for your lawyer so make sure he has all the information up front. In addition, the attorney’s first task will be to fully investigate the elements of your claim so your little secrets won’t stay hidden for long.

Costs

Attorney fees can be in the form of an upfront retainer or you will be billed as the case progresses. These are all things that should be discussed at the initial meeting with your attorney. In some cases, an attorney will take the case on contingency. That means the fee is contingent on his winning your case. He may foot the bill for his out-of-pocket costs as well.

Finally, there’s a good chance the lawyer can get your settlement without much more fuss and bother. Manufacturers do not want to go to court—they stand to lose more money even if they win the case than they would if they settled pre-trial. If you end up in court, our lawsuit page will give you an idea of what to expect.

If you need help locating a lemon lawyer, contact us using the form on the right and we’ll help.

Before you get all excited at the prospect of resolving your lemon issue with the manufacturer in an informal setting, be warned. The rules of this game were written by the federal government and are about as “informal” as a black-tie gala and not nearly as much fun.

Informal Dispute Resolution Background

The logic is fairly seamless. The Magnuson-Moss Act required manufacturers to back up their warranties. It was determined that civil lawsuits could be both expensive and time-consuming for the average person, but a less formal mechanism would be available to everybody. Congress figured out that if they allowed manufacturers to require participation by complainants in an Informal Dispute Resolution (IDR), the rules governing the procedure had to be fair. And so, the Federal Trade Commission (FTC) came up with what has been described as “elaborate and burdensome rules.”

IDRs are supposed to be independent third parties such as the Better Business Bureau Auto Line. However, the Auto Line is funded by 25 car manufacturers. An article in the American Bar Association compared the situation to a “wolf guarding the chicken coop.” That same article indicated that in 1993, 25 percent of manufacturer-funded IDR decisions granted consumers replacements or refunds while state-run arbitration programs granted replacements or refunds in 65 percent (Washington), 50 percent (Florida) and 48 percent (New York) of the cases.

Regardless of the rhetoric, if your state’s lemon law supports a manufacturer’s requirement that you participate in an IDR, you will be able to judge its fairness. The important thing to remember is that these IDRs are not binding on consumers. If you’re not satisfied with the arbitrator’s decision, you can file a civil lawsuit.

Here’s a quick run-down of the IDR rules:

• Adequately funded and staffed in order to resolve disputes quickly
• Free of charge to consumers
• Settle disputes without influence from the parties involved
• Follow written procedure
• Inform both parties when it receives notice of a dispute
• Investigate and organize information necessary to decide the dispute fairly
• Each party has an opportunity to present its case and rebut points made by the other party
• Reach a decision and inform both parties within 40 days of receipt of notice of the dispute
• Provide the reasons behind the decision
• Decisions are not binding on either party (however, manufacturers often agree to be bound)
• Keep complete records
• Be audited for compliance with the rules.

Independent IDR

If your lemon’s manufacturer uses BBB Auto Line, here’s what to expect. Because the rules governing non-optional IDRs are the same, so are the procedures whether they’re administered by independent third parties or states. We’ll give you a more thorough run-down of the Auto Line process, then skim through the IDR administered by Texas.

• You call BBB Auto Line (800-955-5100) and request an information packet that explains the procedure and includes a claim form. You fill out and return the form, following the instructions provided.
• Auto Line staff investigates your claim, opens your case and forwards the claim form to the manufacturer.
• You may be contacted by a manufacturer’s representative. You can attempt to reach a settlement alone or be assisted by Auto Line staff. Auto Line will make an effort to resolve the dispute at this level.
• A pre-hearing settlement conference may be held over the phone. If no settlement is reached, you move to arbitration.
• Arbitration is less formal than a hearing, but contains many of the same elements. You can bring a lawyer to this procedure, heard by an impartial third party.
• Depending on the state laws, an impartial technical expert may review the problem and present a report at the arbitration.
• In preparation for the arbitration, gather your documentation on your vehicle’s journey through lemondom.
• You will have an hour to present your case and your witnesses. You will also have an opportunity to question the manufacturer’s witnesses and rebut any testimony presented by the other side. Obviously, the manufacturer has the same opportunities with you and your witnesses.
• Potential witnesses may include mechanics or sales personnel. They can either appear in person or submit written statements.
• The arbitrator will have a chance to question both sides to clarify the issues.
• Your evidence should include proof of your vehicle’s problem, why that problem is the responsibility of the manufacturer, why you’re not responsible for the problem, how the problem represents an impairment to the use, value or safety of the vehicle and that the manufacturer and dealer have had ample opportunity to correct the defect.
• In addition to your documentation, you may want to bring other documents that support your case, photos, consumer group information, brochures and technical information or newspaper/magazine articles.
• The arbitrator will present his decision—either a final decision for reimbursement, replacement or nothing, or an interim decision requiring a repair to be performed within a 30-day period.
• If you’re not satisfied with the decision, there are remedies. You can ask the arbitrator to clarify or correct the decision or you can simply reject it.
• If you reject the decision, the last recourse is to file suit in the civil courts.

Automakers in the BBB Auto Line Program:

• Acura
• AM General
• Audi
• Buick
• Cadillac
• Chevrolet
• Ford
• GMC Truck
• Oldsmobile
• Pontiac
• Honda
• Hyundai
• IMS
• Infiniti
• Isuzu
• Kia
• Lincoln
• Lotus
• Land Rover
• Mazda
• Mercury
• Nissan
• Saab
• Saturn
• Volkswagen

State-Run IDR

If you live in Texas, you might be in luck. The state’s IDR procedure resulted in 62.5-percent of the claims bringing relief to consumers, to the tune of $5.9 million, in 2002. We’ll use the Texas Department of Transportation (DoT), Motor Vehicle Division procedure outline as an example of state-run programs. We’re leaving out some of the detail in each step where it mirrors the BBB Auto Line process. Again, check your state lemon laws to verify what is required and/or available.

• Complaints are filed in writing using the form available in the procedure booklet.
• The DoT contacts the manufacturer and dealer.
• The manufacturer may send a factory expert to the dealership to identify and, hopefully, fix the problem.
• If that doesn’t work, the DoT rep can send its own expert to meet with all parties. In many cases, the problem is resolved at this stage, within 30 to 60 days of the original complaint.
• If that doesn’t work, a hearing is scheduled.
• The hearing is heard by an administrative law judge (ALJ) with a format and procedures similar to a small claims court hearing. It follows a process similar to that of the independent IDR procedure, but is more formal.
• The DoT issues a decision, including the ALJ’s summary, findings and conclusions of law, after the hearing.
• If you win, the ALJ orders a refund, replacement or repair.
• If you lose, you can file a motion for rehearing within 20 days after you receive the decision.
• If you’re denied the rehearing, you can appeal.
• If that doesn’t work, you can file a lawsuit.

If you suspect your vehicle is a lemon, contact us using the form on the right and we’ll help you find a lemon lawyer.

You’ve read through your state’s lemon laws, reviewed the general qualifications of a lemon on our home page and are convinced you, indeed, have a huge, inedible piece of citrus sitting in your garage. So, what’s the next step?

Since every state’s Lemon Law is specific, we will not address 50 slightly different procedures. What we can do is describe the general process that the majority of state laws include in the legislation.

That first step in resolving your lemon is written notification to your car’s manufacturer. You’ll find the appropriate address in your owners’ manual. As a point of reference, the writer’s ’95 Dodge Ram manual dealt with this issue as a note under the subheading “Emergency Warranty Repairs.” In other words, you may not find a listing for Lemon Resolution in the manual’s table of contents.

The notification should be sent by certified mail which provides you with proof of delivery. Include in the letter the following details:

• Your name, address and daytime phone number
• Year, make and model of the vehicle
• The vehicle’s VIN number, which should be on the vehicle registration as well as on the vehicle itself (check our information on avoiding a used lemon to help locate the number).
• The dealer’s name and address.
• Indicate that the vehicle has a “nonconformity” and describe that nonconformity. Okay, a nonconformity is actually the defect or complaint, but you might as well use the right vocabulary.
• Outline the number of repair attempts including dates.
• Demand a refund or replacement vehicle to be received within 60 days of the date you mailed the notice. If you’re asking for a refund, include copies of your purchase agreement and other expenses.
• While we use words like “demand,” the tone of this letter should be non-emotional and business-like.

State Variables

Here are some of the reasons you need to be familiar with your state’s Lemon Laws.

• There may be a time-limit on when this notification letter has to be written—one reason why you need to move quickly if you suspect your vehicle qualifies as a lemon. For instance, some states require that the notice be sent within 60 days after the express warranty (written warranty) ends or within 60 days after the one-year anniversary of the date the owner took delivery of the vehicle—whichever comes first.
• Some laws require one last attempt on the part of the manufacturer to repair the defect—this is beyond the number of attempt requirements in the laws themselves—before you proceed to the next step.
• Most states are extremely generous in the refund area. For instance, Alabama includes the full contract price including prep and transportation charges, all collateral charges (sales tax, license, registration fees) incidental damages (alternative transportation while the vehicle was out of service). Most states, including Alabama, provide an allowance for use to be deducted by the manufacturer. If you’re requesting a refund in your notification letter, itemize everything you’re entitled to—let the manufacturer figure out the allowance.
• Texas and other states require that a complaint be filed with the state Department of Transportation. Texas provides a form to be filled out as part of this process. A $35 fee has to accompany the complaint form if you are requesting a replacement or repurchase of your lemon. The manufacturer will refund the fee, assuming you prevail at the hearing. If you are only requesting repairs under warranty, no fee is required. This avenue of resolving a lemon, fee structure, etc., will vary from state to state.
• If your state offers a complaint system, like Texas, through the Dept. of Transportation, or in some cases, the state’s Attorney General’s office, determine if that complaint requires the manufacturer’s response from your initial notification letter. In some cases, you will have to wait to file a complaint with the state until the letter of notification route has run its course and not proven satisfactory. The state will ask the manufacturer to resolve the issue and may include some form of Informal Dispute Resolution; the difference is that the state has more clout than you do and in many cases also have the ability to levy a fine against the manufacturer.

Keep track of mileage on your lemon, from the first repair attempt through the initial letter of notification to the manufacturer and every step to the final resolution. The reason is tied into the fact a refund from the manufacturer will include a deduction for usage.

What to Expect

The skeptics will respond to this question with “not much.” They may be right. For those who see a glass half full, you can expect the manufacturer to contact you and arrange to have your car inspected. For the glass-half-empty folks, you can expect the response to be a simple “you don’t have a claim.” In that case, the auto maker has put the ball back in your court. At this point, your recourse is to proceed to the next step—an Informal Dispute Resolution procedure—or whatever your specific state law requires.

If you suspect your vehicle is a lemon, contact us using the form on the right and we’ll help you locate a lemon lawyer.