As a California resident, you may have heard about the state’s lemon law and the option of arbitration to resolve disputes with your vehicle’s manufacturers. But what exactly is lemon law arbitration, and is it right for you?

Our experienced lemon law attorney explains everything you need to know about this process and why you might want to avoid it here.

 

What Is the California Lemon Law?

California’s lemon law is a statute designed to protect you if you buy or lease a vehicle with ongoing, unresolved problems. If your new car, truck, or SUV has a serious defect that the manufacturer or dealership can’t fix after multiple attempts, you might be eligible for a replacement or refund.

 

What Is Lemon Law Arbitration?

Lemon law arbitration is a way for consumers and manufacturers to resolve warranty disputes without going to court. The theory is that in arbitration, a “neutral third party,” known as an arbitrator, reviews the evidence, decides if the manufacturer has made a reasonable number of attempts to repair the vehicle, and determines what compensation or relief the consumer should get.

Most of the time, the “neutral third party” is paid by the manufacturer to do this job. In my 37 years of experience, I’ve seen arbitrators often show favoritism because of their ties to the manufacturer. If consumers disagree with the manufacturer’s decision, they can request state arbitration with the help of a California Lemon Law attorney.

 

How Does Lemon Law Arbitration Work?

The lemon law arbitration process usually involves the following steps: 

1. Notification: Consumers must notify the dealer or manufacturer that their vehicle is a lemon and fill out the application form along with evidence of the repair attempts on their vehicle. 

2. Arbitration Hearing: During the hearing, the consumer and the manufacturer present their evidence and arguments to the neutral arbitrator. 

3. Arbitrator’s Decision: The arbitrator has 40 days to review the evidence and decide whether the vehicle is a lemon and what compensation the consumer is entitled to. More often than not, arbitrators will “award” the consumer another repair, which is basically a ruling for the manufacturer that they haven’t had enough chances to get it right. The irony is that most of the time, the consumer’s warranty hasn’t expired, and they’re entitled to another repair if they want. So, it’s not much of an award.

If you have gone down this route and experienced this frustration, this is the time to have an experienced lemon law attorney review your case. Many times, the fact you went through arbitration can set you up for additional damages. 

 

Is Lemon Law Arbitration Required by Law in California?

No, lemon law arbitration isn’t required in California. Consumers can pursue arbitration but are not legally obligated to do so. If they decide not to, they can file a formal complaint or lawsuit against the manufacturer directly.

 

Pros and Cons of Lemon Law Arbitration

While arbitration might seem like an easy way to resolve a lemon law dispute, there are some pros and cons to consider:

 

Pros of Lemon Law Arbitration

 

Faster Resolution

Arbitration is usually quicker than going to court. However, view the cons below.

 

No Lawyer Required

Consumers can represent themselves, although having legal counsel is still recommended.

 

Cons of Lemon Law Arbitration

 

Potential Bias

Arbitrators typically favor manufacturers. Many consumers give up in dismay, having gone through a process they thought would bring justice, and it usually doesn’t. Manufacturers hope you just go away.

 

Limited Discovery

Consumers have less access to information and evidence compared to a traditional lawsuit, which can put them at a disadvantage.

 

Limited Remedies

The remedies available through arbitration may be more limited than what a court could offer.

 

Binding for Manufacturers

The arbitrator’s decision is binding for the manufacturer, even if the consumer is unsatisfied.

 

Admissibility in Court

If the consumer files a lawsuit after arbitration, the proceedings and decision can be used as evidence against their claim or for the manufacturer’s defense.

 

Should I Arbitrate My Lemon Law Claim?

Given the potential drawbacks of arbitration, it’s generally not recommended for consumers to pursue this route. Instead, it’s better to consult with a skilled California lemon law attorney who can often get you a satisfactory remedy quickly.

 

Why Choose a Lemon Law Attorney?

Hiring a California lemon lawyer to help with your claim has several benefits, including, but not limited to: 

• Expertise: Attorneys have in-depth knowledge of the law and how it applies to your situation. 
• Advocacy: Your lawyer will be dedicated to protecting your rights as a consumer and will fight for the compensation you deserve. 
• No Upfront Costs: Many lemon law firms work on a contingency fee basis, which means they only get paid if they win your case.

 

Is Your Vehicle Defective? Contact Our California Lemon Lawyers Today!

Do you think you have a 2019 or newer Lemon car? Contact our experienced lemon law attorneys at Norman Taylor & Associates today! We understand the frustration of dealing with a defective vehicle and are here to help you get the best outcome.

Call us at 818-244-3905 to schedule a FREE, no-obligation consultation and learn more about your rights.

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