The California Lemon Law in an Uncertain Economy
Friends and family have all asked me recently: “What is happening to California Lemon Law cases in this new economy?” The news from Detroit has been grim: Chrysler recently reported record low sales. General Motors has threatened bankruptcy. Even Toyota has reported declining sales and layoffs. The news from the RV industry is even more grim: Monaco, Fleetwood, and Country Coach have filed bankruptcy. Others have simply closed their doors.
So, where does that leave the consumer who has a Lemon Law claim? Good question. We have been telling our lemon law clients to consider every settlement overture by the manufacturers carefully in light of the economy. Settlement offers that we would have previously considered inadequate are receiving new scrutiny. The decision to settle or not settle falls more squarely under the “bird in the hand” analysis than ever before. This is not to say that we are recommending undue compromise; just that the better part of discretion and wisdom dictate a more clear-eyed, practical look at lemon law claims than ever before.
Bottom Line Advice in the Brave New Economy: If you can settle your lemon law claim with the manufacturer without having to resort to the courts, then by all means, press to wrap up the settlement as soon as you can. If you have to hire an attorney to pursue your claim successfully, then do so immediately. Do not delay contacting competent counsel and cooperate with your attorney in coming to an amicable and fair resolution.
