For decades, the California Lemon Law has been the legal sword available to consumers gifting them needed legal power against auto manufacturers. The lemon law in California is also generous to consumers providing them with a provision which places the obligation upon the manufacturer to pay the consumer’s legal fees and costs.
Up until Covid, very few law firms specialized in the lemon law, with Edzant Price, LLP being one of the few. The relationship between these few law firms and the auto manufacturers was cooperative, with most law firms presenting to the manufacturers cases which were generally strong. Prior to filing a lawsuit, or “pre-litigation,” most firms also provided manufacturers an opportunity to repurchase or replace the defective vehicle, which was often accepted. As such, filing lawsuits in lemon law cases was usually unnecessary as most cases were resolved during pre-litigation. The average pre-litigation case was completed within 90 days. The manufacturer paid the legal fees for the consumer based upon the time it took the law firm to resolve the case pre-litigation.
However, post Covid, several new law firms entered into the lemon law arena and adopted an aggressive, and unnecessary, tactic to pursue these claims wherein they did not give a manufacturer the opportunity to repurchase a vehicle pre-litigation. Instead, these firms would file lawsuits against the manufacturers immediately, thereby forcing a case into litigation. (Many of these cases were also weak and should not have been accepted by any law firm.) So why would they do this? Because of the obligation imposed upon the manufacturer to pay the legal fees for the consumer. In litigation, the amount of time to pursue a lemon law case is substantially higher than resolving a case pre-litigation, allowing the law firms to bill manufacturers much higher legal fees. There is no benefit to the consumer.
Furthermore, the amount of cases filed by these firms was staggering, with court filings amounting to thousands of new cases per month. As predicted, the courts were unable to manage this massive influx of filings, taxing the civil justice system to a breaking point. In addition, the manufacturers had to spend tens of millions of unnecessary dollars defending these lawsuits. Instead of 90 days to complete a case, an average case was now taking one to two years to conclude. Simply put, the system had become horribly abused, creating a substantial burden upon the courts, the auto manufacturers, and attorneys. The system was now broken and had to be corrected.
To curb this lawsuit abuse, the California legislature created a condition that anyone seeking to bring a lemon law case must first give the manufacturer the opportunity to repurchase or replace a qualified vehicle prior to filing a lawsuit. (There are some exceptions.) This prerequisite to filing a lawsuit is designed to significantly reduce the number of lawsuits being filed daily and to curb the abuse of the civil justice system. Most importantly, this law change is designed to provide consumers of defective vehicles a quicker and smoother pathway to resolve their legitimate lemon law claims.
Edzant Price LLP advocates that all lemon law cases should try to be resolved prior to filing lawsuits. For over 35 years, we have always given the manufacturers the opportunity to repurchase or replace a vehicle prior to filing lawsuits. We believe this method of presenting lemon law cases help consumers get out of defective vehicles quickly and is also fair to auto manufacturers. Additionally, we only accept and pursue cases which have merit. Because of the way we pursue our cases, manufacturers treat Edzant Price, LLP with the utmost respect and know that when our name is on the case, the case should be taken seriously.
