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The California Lemon Law protects consumers who purchase or lease vehicles that turn out to have significant defects. It requires the manufacturer to repurchase or replace vehicle if it can’t be fixed after a reasonable number of attempts. The law applies to vehicles still under warranty and covers cars, trucks, motorcycles, and certain recreational vehicles. However, recent updates, including Assembly Bill 1755, aim to streamline the lemon law process.
AB 1755 revises numerous critical parts of the lemon law through revisions to the California Code of Civil Procedure. Governor Gavin Newsom signed the bill, which introduces several key changes that impact consumers and manufacturers alike.
To understand these changes and how they impact your Lemon Law claim, it is crucial that you consult with skilled lemon law counsel, like CCA.
Key Changes Introduced by AB 1755
- Mandatory Mediation Process: One of the most significant updates is the introduction of a mandatory mediation process for lemon law claims. Before consumers can proceed with a lawsuit, they must first attempt to resolve the issue through mediation with the vehicle manufacturer.
- Mandatory Discovery Process: AB 1755 now mandates that the automaker and consumer engage in the immediate and voluntary exchange of information, once the lemon law lawsuit is filed. Consumer no longer need to wait for automakers to produce documents and a witness for deposition. AB 1755 now mandates that automakers provide certain discovery at the outset of a lemon law lawsuit.
- Discovery Stay During Mediation: The bill also stays any additional discovery —such as depositions or document requests—until the mediation process is complete. This is designed to lower litigation costs and reduce the burden on the courts, as well as the involved parties. Once mediation is complete, the Parties resume normal discovery.
- Increased Consumer Protections: AB 1755 emphasizes the protection of consumer rights during the mediation process. Consumers will still retain the right to take legal action if the mediation fails to deliver a satisfactory outcome. The bill also ensures that any settlement or resolution during mediation must align with the protections provided under the original lemon law.
- Clarification of Civil Penalties: The law introduces clearer guidelines around civil penalties. For instance, manufacturers that knowingly violate lemon law provisions could face stiffer fines. These financial penalties are intended to deter manufacturers from avoiding their legal obligations under the law.
Impact on Consumers and Courts
Proponents of the bill argue that AB 1755 will make it easier for consumers to resolve lemon law disputes without needing to navigate a lengthy and costly legal battle. By encouraging mediation, the law aims to reduce court backlogs and offer quicker relief for consumers.
On the other hand, some critics express concerns that mandatory mediation could favor manufacturers, who might use the process to delay full compensation. However, consumer advocates argue that the penalties for non-compliance will keep automakers accountable.
The bill’s supporters also highlight General Motors’ involvement in the reforms. GM faces a significant portion of lemon law claims in California, and the auto giant’s backing of the bill indicates that some automakers see the benefits of the new system.
Contact an Experienced Lemon Law Attorney at CCA Today
If you are unsure if you have a lemon on your hands or are confused about these recent changes, contact our experienced California lemon law attorneys today! Our legal team has extensive experience handling lemon law claims and a proven history of helping our clients obtain the maximum possible compensation.