California’s Lemon Law has changed quite a bit in the last few years. Depending on the manufacturer involved, consumers may not have to go through mediation before filing a lawsuit. 

Learn more about what mandatory mediation means and when it applies below.

Key Takeaways: 

• Mandatory mediation only applies to California Lemon Law claims involving manufacturers that opted into the AB 1755 process.
• Mediation is a non-binding settlement process that takes place before a lawsuit can fully move forward.
• Keeping repair records and communication history can become extremely important during mediation.

What Is Mandatory Mediation?

Mandatory mediation is a formal settlement process that takes place before a lawsuit moves forward. Instead of going directly to court, both sides meet with a neutral mediator who helps guide discussions and settlement negotiations. The mediator’s role is to help both sides communicate and see whether an agreement can be reached without full litigation. They don’t decide who wins the case.

How Does Mandatory Mediation Apply to California Lemon Law Cases?

California introduced changes to the state’s lemon law through Assembly Bill 1755 and Senate Bill 26 in April 2025. Together, these laws created a new framework that allowed manufacturers to choose whether they wanted to opt in to the new, revised protocols for handling claims.

Opt-In Manufacturers

Manufacturers from Ford to General Motors chose to opt into the new framework in 2025. If your manufacturer decided to participate, it means there will be additional steps that’ll need to happen before you’re officially able to file a lawsuit. One example is having to provide written notice to the manufacturer explaining your vehicle’s defects and requesting a buyback or replacement. 

If the manufacturer ultimately decides not to agree to resolve the claim after receiving this notice, the case will then generally move into mandatory mediation before litigation is able to continue.

Non Opt-In Manufacturers

Manufacturers who decided not to participate in the updated procedures will continue to follow the traditional Lemon Law process, which means consumers aren’t required to complete mandatory mediation before filing a lawsuit.

When Does the Requirement Apply?

As mentioned above, mandatory mediation only applies if the manufacturer has opted into the AB 1755 process. It’s also worth noting that, if the manufacturer is part of the opt-in system, there will be deadlines that control how quickly the mediation must happen. For instance, mediation is supposed to be scheduled within 90 days after the manufacturer responds to the consumer’s notice.

How Does Mandatory Mediation Change the Process?

Simply put, mandatory mediation forces a faster, more structured settlement process by putting settlement discussion at the center of the process before litigation fully begins. Having both sides, the consumer and manufacturer, argue their position more easily in the case could potentially mean quicker repairs or compensation for the vehicle owner and less court congestion in California as a whole, since there’s been an uptick in lemon law claims over the last decade. 

At the same time, on a somewhat limiting note, it can also mean certain parts of the discovery process that would normally happen during litigation may be overpassed. That basically means you, as the consumer, might have less access to internal documents or other evidence before settlement discussions begin.

What’s the Difference Between Mediation and Arbitration?

Mediation

Meditation is non-binding. Yes, you’re required to attend if it’s mandatory, but you’re not forced to reach an agreement or accept the mediator’s suggestions. Both parties must agree before a settlement becomes final; the mediator is just there to guide the conversation. If an agreement is met and signed, then it would be a binding contract.

Arbitration

The arbitration process is usually more formal, and the decision is legally binding. Unlike a mediator, who helps both sides negotiate, the arbitrator acts more like a judge and will make a final decision after reviewing the case evidence.

What Does a Mediation Session Involve?

A Lemon Law mediation session usually includes the consumer, the consumer’s attorney, a representative for the manufacturer, and the mediator. Here’s what that typically looks like: 

• The Consumer: Details the problems they’ve encountered with their vehicle and how the defects have affected them. 
• The Attorney: Presents the legal side of the case, including the vehicle’s repair history and warranty information. 
• The Manufacturer’s Representative: Participates in the settlement discussions and has the authority to negotiate on behalf of the company.  
• The Mediator: As discussed, they oversee the process and make sure it stays productive. 

Stages of Mediation

After introductions, most mediation sessions begin with both sides presenting their positions during a joint discussion. Then, the mediator may meet separately with each side to discuss sensitive issues and possible settlement options privately. If both sides reach an agreement, the settlement terms are typically written out and signed before the mediation ends.

Keep in mind that not every case settles during mediation, but a large majority do.

How Can I Prepare for Mandatory Mediation?

No matter which version of the law applies to your lemon law case, the most important thing you can do to prepare will always be to document your repair attempts, save any repair orders you receive, and keep records of every conversation you’ve had with your dealership or manufacturer itself. 

Also, if you haven’t already, consider working with an experienced California Lemon Law attorney since any manufacturer you face will likely have legal teams involved from the beginning. Not only will they be able to negotiate on your behalf during the mediation process and potentially beyond, but the state’s lemon law includes a fee-shifting provision, which means that if you win, the manufacturer will also be responsible for covering your attorney fees.

Do You Need an Attorney? Contact Our California Lemon Law Firm!

The goal of mandatory mediation may be to simplify parts of the Lemon Law process for consumers, but these cases can still become complicated quickly. At Norman Taylor & Associates, we help California consumers handle Lemon Law claims from start to finish, including cases involving mandatory mediation. 

Do you believe your 2021 or newer vehicle qualifies as a lemon? Contact our team online or call 818-244-3905 or 888-817-8822 today to schedule a FREE consultation!