Purchasing a car or truck is a major investment, and consumers have the right to a vehicle that is safe and consistent with the representations of the manufacturer and seller. Unfortunately, there are enough instances of problems with recently purchased automobiles to justify the passage of “Lemon Laws” in California and other states. These provisions authorize victimized consumers to seek restitution, civil penalties and/or a replacement vehicle when serious problems exist. Now, a law recently passed by Governor Newsom means that California Lemon Law litigants must try to settle their dispute in mediation before going to court. 

With the enactment of AB 1755, most discovery is halted until the mediation process has concluded. However, certain limited evidence—such as repair orders, warranty details and vehicle purchase agreements—can still be exchanged to prepare for mediation. This process ensures both sides have a fair opportunity to present their claims and defenses in good faith without entering the full-scale litigation phase.

The goal is to encourage quicker, more cost-effective resolutions while reducing the burden on California’s courts. If mediation fails, the case can then proceed to litigation with discovery resuming. This method of alternative dispute resolution, conducted under the guidance of a neutral third-party mediator, offers several distinct benefits in Lemon Law cases, such as:

• Speed and efficiency — People who buy a car that does not work want a quick resolution to that helps them meet their transportation needs. Lemon Law cases can drag on in court for months or even years. Mediation often speeds up the process so that consumers can move on and manufacturers can avoid prolonged legal battles.

• Cost savings — People who purchase a lemon are already facing financial pressure. mediation is generally far less expensive than litigation.

• Confidentiality — Unlike public court proceedings, mediation discussions remain private, protecting sensitive information for both sides.

• Maintaining customer relationships — For consumers and manufacturers, mediation provides a less adversarial setting, which can lead to an amicable settlement and possibly future transactions between the parties. 

California’s revised Lemon Law is a step toward more efficient, cost-effective resolutions for vehicle owners experiencing repeated defects. Mediation provides a fair opportunity to resolve disputes quickly, helping consumers receive compensation or replacement vehicles without unnecessary delays. Quinn & Kronlund LLP provides professional mediation services throughout Northern California in Lemon Law cases and other matters. Feel free to contact us online or call 209-943-3950 to learn more about our services. Our office is in Stockton.