Law Firms Are Abusing Calif. Lemon Law Fee Provision

Law360 (February 4, 2021, 2:22 PM EST) -- While automobiles have become more reliable and the frequency of problems with them have generally decreased[1] over the past decade, lawsuits under California's Song-Beverly Consumer Warranty Act, the state's so-called lemon law, have actually increased.[2]

The original intent of the unique California law was to ensure that manufacturers would repair, replace or repurchase a consumer's defective vehicle as quickly as possible. However, law firms frequently exploit loopholes in the law to create windfalls for themselves — especially its provision that requires auto manufacturing defendants to pay prevailing plaintiffs attorney fees.

While that sounds reasonable, in practice it unfortunately adds to both...

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