California Lemon Law Extended to Military Personnel Transferred to California
On January 1, 2008, SB 234 (Corbett) will go into effect. This bill, which California Governor Arnold Schwartzenegger signed on July 27, 2007, will extend California Lemon Law Protection to all military personnel stationed in California, regardless of where they purchased their lemon.
McCoy, Turnage & Robertson law partner Ellen Turnage represented Lt. Nathan Kindig in the Lemon Law case that brought this issue to the attention of the California legislature. Lt. Kindig’s case was especially sympathetic as evidenced by Ms. Turnage’s testimony to the California State Senate Judiciary Committee. I have endeavored to summarize her testimony here:
Any one who purchases and takes delivery of a vehicle within the state of California is protected by California’s lemon law, a very consumer friendly statute. However, buyers, including California residents, who purchase vehicles in other states – even though they register the vehicles in California and pay California sales tax – are not protected by the California Lemon Law. These California citizens do not realize they are not protected by California Lemon Law until they discover they are the proud owners of a lemon.
But even worse is the fact that our military personnel who are not California residents and who purchased vehicles in other states are excluded from California lemon law protection. The tragedy is that these individuals are not here voluntarily. They are ordered to this state for the purpose of protecting this state and our nation. And yet, our California Lemon Laws fail to protect them. They are in essence individuals without a state.
Let me see if I can demonstrate how our laws fail to protect our military by describing Lt. Kindig’s pending lawsuit against DaimlerChrysler.
In July, 2005, I received a call from a young sailor who informed me that he purchased a 2004 Dodge Dakota on October 8, 2003. He informed me the vehicle overheated. He informed me that he and his family had been stranded out-of-state by this condition. He informed me he had taken the vehicle in at least five times for repairs because of the overheating defect. And he informed me that the defect was never repaired. Very good facts under the California Lemon Law.
During his call to my office, I learned that he purchased the vehicle in the state of Washington. California’s Lemon Law does not protect vehicles purchased outside of California. We are one of the few states with that limit. Several states protect vehicles which are either purchased or registered within that state.
I explained to Lt. Kindig that maybe I could convince Chrysler to repurchase the lemon vehicle with a notice and demand letter. I frequently work with the various manufacturers in lemon law matters, I know the people involved at the manufacturers and I hoped I could persuade Chrysler’s representative to take care of this matter early on.
Not so. Chyrsler’s representative called me from Michigan. He said and I quote, “Do you really expect Chrysler to give any deference to the fact that Lt. Kindig is in the military. I have to treat him just like everyone else.” I said, “you bet I do and no you don’t.”
Chrysler’s representative informed me that under the Federal Lemon Law, Lt. Kindig would get only diminution in value as opposed to a full repurchase since we could not claim California Lemon Law damages.
I filed the lawsuit on December 19, 2005 under Federal Lemon Law.
Eventually, after months of haggling and after I volunteered to waive my fees of almost $7,000, Chrysler said it would repurchase the vehicle if Lt. Kindig agreed to a large offset. By this time, Lt. Kindig had returned to Iraq and we were communicating via the internet. He agreed to the inflated offset. California Lemon Law has a formula that defines the offset. Chrysler refused to use the offset formula and just demanded a specific offset amount.
Let me briefly share Lt. Kindig’s frustration with you. He purchased this vehicle in Washington. He was transferred to San Diego and brought the truck with him. After his return from his first deployment to Iraq, the vehicle began to overheat. He took it to a Chrylser authorized repair facility. They replaced the water pump. He took his family, his wife and 7 year old daughter, to Arkansas to visit his parents. The vehicle overheated. The water pump was replaced again in Arkansas. On his return trip, it overheated multiple times and had various repair attempts. He took it to two authorized repair facilities in Arizona. He had to leave it for two weeks and rent a car to return to California. He went back to get the truck. On the return trip, the vehicle continued to overheat. Finally, on August 19, 2005, it overheated so badly steam was coming out from under the hood. He parked it. He has not driven it since.
This added stress is not good for anyone but especially not good for someone fighting a war. He needs to know his family has reliable transportation. When he has free time from his duties as a physician’s assistant, he needs to send e-mails and make phone calls to his family, not to his attorney.
He paid $540.12 every month for a vehicle he could not drive. This is not acceptable. Chrylser admitted that it would have repurchased this vehicle immediately upon receiving my notice and demand letter but for the fact that the vehicle was not purchased in California. A LEMON IS A LEMON. This has to change for our military personnel stationed in California. We owe this extra level of protection to our protectors. We need to expand statutes to protect our military who are guests in our state.
Shocked by the indifference of Chrysler, Ms. Turnage and Lt. Kindig welcomed the offer of Sen. Ellen Corbett to author a bill to make the California Lemon Law applicable to military personnel, regardless of where they purchased their lemon vehicle. Lt. Kindig was so committed to the issue that he called in from Iraq where he was deployed for a second tour of duty. Lt. Kindig testified telephonically to the Senate Judiciary Committee; you could have heard the proverbial pin drop in the hearing room.
SB 234 takes effect on January 1, 2008 and thereafter all active duty military stationed in California will be protected by the California Lemon Law. Thank you Ellen and, especially, thank you Lt. Kindig!