California Lemon Law Explained
California lemon law is the most common name for an act of the California legislature that was enacted in 1970, making it illegal to sell a vehicle that has defects which affect its use, value or safety. This law applies to those vehicles that have a defect which the manufacturer cannot repair and have been brought back into the shop four times for the same defect or were out of service for a total of more than 30 days in the first 18,000 miles or 18 months that the car is in service. The law applies only to new vehicles, but does allow the consumer to have the amount of time and mileage adjusted if they have purchased a used vehicle that had been purchased new. The law has an exclusion for the purpose of repairs which allows a mechanic 30 days to make repairs to a vehicle. This is to protect manufacturers from false claims as to the length of time it takes to repair a car which is backed up because of demand or parts shortages. Importantly , the vehicle must be covered by a warranty at the time of purchase. State and federal lemon laws protect consumers from purchasing a defective vehicle by allowing them to get out of an absurdly one-sided purchase contract when the manufacturer has failed to deliver on its basic warranties for the vehicle. The goal of lemon law is to protect the consumer from the purchase of a defective vehicle by allowing the consumer to recover damages, which includes a refund of the vehicle and reimbursement for incidental damages. An attorney may be necessary to recover these damages, but there is no up front fee for an attorney and there is no risk; the consumer only pays the attorney if the attorney is successful in recovering a rebate.
Attorney Fees Under California Lemon Law
Depending on the terms of your attorney-client representation agreement, you may be required to promptly advance and pay attorney fees ($), either at a flat fee or hourly rate. While this form of payment arrangement is standard in the majority of legal cases, it is not standard in California Lemon Law actions. Under the California Lemon Law, if you successfully recover a money judgment from the manufacturer, the manufacturer is required to pay your "reasonable attorney fees." (Civ. Code § 1794(d).) Every circumstance is different and some cases do require the consumer to pay some or all of the attorney fees up front with the expectation that payment may be recovered later. But there are options out there that do not require paying an attorney up front.
Who Pays Attorney Fees in a California Lemon Law Case
In the context of whether a plaintiff can recover attorney fees in a lemon law action, the California Supreme Court has stated, "Generally, absent a statute, the prevailing party in an action for breach of contract may not recover attorney’s fees." (Santisas v. Goodin (1992) 17 Cal.4th 599, 608.) It follows then that an attorney fee provision in a lemon law claim is essential since this provision typically entitles a prevailing claimant to recover reasonable attorney fees and costs under the statute. Id. In 1970, the California legislature enacted Civil Code section 1794(d) which provides that: "In any action filed under the Song-Beverly Act, a prevailing buyer shall be allowed to recover as part of the judgment reasonable attorney’s fees and costs, if any." (Civ. Code § 1794(d).) The Song-Beverly Act is also known as the California Lemon Law or the Song-Beverly Consumer Warranty Act. The manufacturer is responsible for paying attorney fees and costs if it lost or you settled. Subdivision (d) of the Song-Beverly Act states "fee recoveries may include, but are not limited to, any overhead necessary to compensate the attorney." (Civ. Code § 1794(d).) Further, it should be noted that should the claimant prevail, the manufacturer pays his or her own attorney fees and costs. There is no reciprocal right of recovery.
Attorney Fees Affecting Factors under Lemon Law
Some of the factors which may affect attorney fees include: Case Complexity. Among the cases which we handle are 1.0 and 2.0 case cars. These are cars where there has been a disabled vehicle or two, typically in the first 18 months of ownership. In these cases, we frequently have the vehicle evaluated by our own expert to see which repairs on the car have "mystery" problems, i.e., problems which the dealer cannot replicate once it gets the car in for repair. Some of these 1.0 and 2.0 case cars are easy to get a buyback for, others take time and effort to investigate all problems and pinpoint liability for them. We also handle cases where the repair history is extensive, and where hidden defects take time to uncover, such as problems with the transmission slipping, abnormal engine oil consumption, braking problems and window problems. The important thing is that our office will not unduly inflate your case for the sake of attorney fees. Rest assured we are conservative and only seek the amount of attorney fees necessary to get you a buyback or a replacement vehicle.
Time Investment. We also handle cases where the vehicle has not been repaired accurately for the same or similar problem on multiple occasions. This often happens with vehicles suffering from engine problems or transfer case issues. A case like this may require substantial work, but in some cases, the case can be settled without having to present the case at trial. We will certainly not inflate your case for the sake of boosting attorney fees. You can have confidence that the legal fees we charge are the legal fees you need to pay.
Attorney Experience. Newer attorneys cost less and do not command as high an hourly rate as a seasoned attorney. However, as the old adage goes, "you get what you pay for." Less experienced attorneys typically take longer to get the job done than older, more seasoned attorneys. While the pay for more seasoned attorneys can be higher per hour, these attorneys can also handle more work in less time than their younger, less experienced counterparts. Thus, while you may pay a younger attorney less in an hourly rate, you may end up paying more in total because the younger attorney can take longer to handle your case than an experienced attorney.
Hiring A California Lemon Law Attorney: Benefits
It is important to note that even the most experienced and knowledgeable California lemon law attorney cannot guarantee the client will have a favorable outcome. However, getting a guaranteed outcome is not the important consideration so much as the fact that some lemon law attorneys will be able to maximize the potential of the case for you by explaining the steps and procedures (sometimes nuanced) necessary for each matter and giving the appropriate guidance throughout the process .
A lemon law attorney with experience in California lemon law cases will likely have a deeper understanding of the various laws pertaining to California lemon law matters and have a wealth of experience about the success (or failure) of a particular approach. During the course of the case, it is likely that some negotiation will occur with the manufacturer and/or the dealer; an experienced lemon law attorney will have an understanding of where the "negotiation zone" exists for that particular case and will be able to do a better job of positioning the client’s case for maximum recovery or in the most efficient manner possible.
Selecting the Right California Lemon Law Lawyer
When it comes to the selection of an attorney, there a few things you, as a consumer, should know. While we would never suggest that you forego hiring a lemon law attorney, if your lemon law claim is small and simple enough, you might consider representing yourself, especially if you have a simple car warranty case. As a well-known Yosemite character purportedly once said, in sentencing this convict to death from hanging, "I do not want to ruin a good lawyer."
That said, for those who decide they need to hire a lemon law attorney, here are some tips…
Choose an expert. After you determine that your case is suitable for lemon law, it is important to find a lemon law expert. After you’ve completed your research of lemon law attorneys, ask your lemon law attorney if he or she is a lemon law expert and how many lemon law claims he/she has handled. Another consideration is to choose a lemon law attorney who specializes in lemon law litigation over one who specializes only in lemon law settlements out of court.
Client reviews. An often overlooked resource is customer reviews. Even "the best" brands have lemons; ask around. The left side review panel on our homepage is an excellent example of a lemon law attorney’s customer reviews.
Successful Case History. Once you are comfortable with your selection for lemon law attorney, check their record with the Better Business Bureau. If you like what you see, you can schedule an appointment for a consultation. Remember: all lemon law consultations are free.
Conclusion and Related Information
In conclusion, California Lemon Law attorney fees are a significant component of lemon law cases in California. It is essential for consumers to understand their rights surrounding attorney’s fees and how they can impact lemon law claims. Hiring an experienced lemon law attorney can minimize personal costs, maximize the likelihood of success, and ensure comprehensive representation.
For those seeking further information on lemon law attorney fees in California, a variety of resources are available through the California Department of Consumer Affairs or the Better Business Bureau (BBB) for Lawyers & Legal Services . It is also recommended that consumers contact the California LeMon Law Group directly for more information.
The bottom line is this: If your lemon law case is pursued in a proper and timely manner, with the assistance of a knowledgeable lemon law attorney, the client will not have to pay legal fees. Rather, the automobile vehicle manufacturer will be responsible for the proper prosecution of the case by the lemon law attorney. The lemon law attorney will instead get paid directly by the automobile manufacturer at the end of the case.