What Is Lemon Law Arbitration in California?

If you recently purchased a vehicle in California and quickly discovered it has major defects that jeopardize your safety, you may be wondering about your legal options. Many are familiar with traditional litigation and holding a manufacturer accountable for selling a defective product, but they may be asking, “What is Lemon Law arbitration in California?”

Lemon Law arbitration is an alternative dispute resolution option that would allow you to avoid court and all of the traditional litigation expenses. It’s become a popular alternative option as many find it to be faster and less expensive. If you believe you have recently purchased a lemon and would like to explore this option, you would first connect with a lemon law attorney and have them submit your case to an arbitrator certified by the California Department of Consumer Affairs.

How Common Are Lemon Law Claims in California?

California is one of the top states in the U.S. for Lemon Law claims. In fact, approximately 10% of all civil filings in Los Angeles County are related to Lemon Law cases.

Due to the high volume of vehicle sales and strict consumer protection laws, many residents have experienced these protections firsthand. They can be especially beneficial in cities like Los Angeles and San Francisco, where the amount of traffic congestion and long commutes make it impossible to conduct daily life with a defective vehicle.

Southern California also has its own set of challenges. Vehicle issues like overheating or experiencing a brake failure on one of the area’s steep roads can be extremely problematic. Residents rely on the safety of their vehicles and should be afforded a solution when things go wrong. If you live in the Bay Area or LA, enacting your rights under the Lemon Law can help prevent dangerous mechanical issues happening on busy highways like US-101, I-80, and I-405.

How Does Lemon Law Arbitration Work in California?

When you sign up for Lemon Law arbitration, you are putting your case in the hands of an independent, unbiased arbitrator. These are trained professionals who will review every last detail of your claim and decide if the case has enough merit to order the manufacturer to either replace or refund you for the defective vehicle in question. While California does not mandate consumers enter the arbitration process, many do to try and secure a faster and cheaper solution.

Steps in arbitration include:

• Filing a Claim: You must submit a detailed complaint to your arbitrator. This should include a description of the vehicle’s defects, records of your attempting to have it repaired, a copy of the purchase records, and details on the manufacturer’s warranty coverage. Once you submit this, the arbitration board will review the claim and schedule a hearing if they deem it necessary.
• Hearing Preparation: To ensure you are prepared for your arbitration hearing, you will need to work with your attorney to legally collect evidence that substantiates your claims. This can include all service and maintenance records, recall notices, any professional opinions from a third-party vehicle professional, or any proof that you missed work due to the vehicle’s defects.
• Arbitrator’s Decision: After you submit all of your evidence, the arbitrator will take everything into consideration and then make either a binding or non-binding decision. Some of the most plausible outcomes are to order the manufacturer to repurchase the vehicle, replace it with something comparable, or deny the claim.
• Appeal: If you disagree with the arbitrator’s final decision, you have the right to appeal the decision if it was a non-binding resolution. If the arbitration issues a binding decision, this is final and cannot be appealed. While this might feel like the end, it’s still important to work closely with your attorney to see what other legal options might be available.

FAQs

Q: How Do You Win Lemon Law Arbitration?

A: To have success with a lemon law arbitration claim, you should prioritize collecting strong documentation and formulating a well-prepared argument. The goal is to make clear how your vehicle directly qualifies as a lemon under California law. Your chances of winning will be significantly increased if you keep detailed records of failed repair attempts and all communication records between you and the manufacturer about the issue.

Q: What Happens if You Win in Arbitration?

A: If you are successful in your Lemon Law arbitration case, you will be protected and reimbursed for the damage the defective vehicle has had on your life in some way. Many times, the arbitrator will order the manufacturer to either replace the vehicle or refund everything you spent on it. In some cases, the arbitrator will award a cash settlement instead, which would allow you to keep the vehicle and receive compensation to account for its reduction in value.

Q: Does Arbitration Cost Money for the Consumer?

A: It does not cost any money for a consumer to file for arbitration in California. This differs from a traditional lawsuit where the consumer would be responsible for footing the bill on court filing fees, attorney expenses, and professional witness costs in the hopes that it will be returned through a settlement if they win. It is still recommended you select an attorney to support you during the arbitration process to avoid any violations of your consumer rights.

Q: What Should I Do if the Manufacturer Ignores the Arbitration Decision?

A: If you have won your arbitration case but the manufacturer is failing to comply with the decision, you may need to take extra steps to enforce what they should be doing. First, contact the arbitration program with your lawyer to notify them of the noncompliance. If they continue to ignore the ruling, you may be advised to take additional legal steps. Be sure to keep all correspondence records to ensure they cannot justify their unlawful actions in any way.

Contact Lemon Law Pro Today

If you recently purchased a defective car in California and would like to learn more about your options under Lemon Law and the possibilities of arbitration, contact our firm today. Lemon Law Pro can set up a free consultation to review your case, and if we accept it, we will represent you for free. Our team proudly serves clients statewide.