Governor Newsom Signs New Lemon Law Legislation in Exchange for Promise from Legislators to Make It Optional
On September 29th, California Governor Gavin Newsom signed Assembly Bill 1755 (AB1755) into law, but he did so with a caveat. He signed the law on the understanding that the legislature would introduce a new bill in the upcoming 2025-2026 legislative session that would make significant changes to the law he just signed. Whether that happens and what comes of it remains to be seen. Meanwhile, AB 1755 introduces some of the most significant changes to California’s lemon law in decades. Read on to learn what the new law does and how it might be amended next year. Meanwhile, if you need help pursuing a lemon law claim in California, contact the Nita Lemon Law Firm to discuss your case with a knowledgeable and experienced California lemon law attorney.
New Procedures, New Deadlines for Lemon Law Claims
It’s been a rough couple of months for consumers who previously enjoyed extensive protection under California lemon law, aka the Song-Beverly Consumer Warranty Act and Tanner Consumer Protection Act. After years of waiting, the California Supreme Court in October finally reached a decision in Rodriguez v. FCA US, LLC, and the news was not good. The court in that case decided that owners and lessees of used cars did not enjoy lemon law protection, even if the car was still under warranty and stuck with unrepairable defects. Now, the impact of AB1755 on lemon law claims is starting to sink in.
AB 1755 was a clear attempt to lessen the number of lemon law lawsuits that can be filed in court, and it took on that challenge in a number of important ways. Some of the key changes wrought by AB1755 include:
- Before filing a civil complaint in court, vehicle owners and lessees must now first submit a written complaint to the manufacturer explaining the problem they have with the vehicle.
- The manufacturer must respond to the written complaint within 30 days, acknowledging receipt.
- After responding, the manufacturer has up to 30 days to repair the defect or offer a replacement vehicle. At the end of that period, the consumer can then file a lawsuit if their complaint has not been resolved.
- Any lawsuit brought under the lemon law must be filed within one year after the warranty’s expiration date, or else the consumer loses the right to file suit.
- No lemon law case can be filed after six years have passed since the vehicle was first delivered to the consumer, regardless of whether it is still under warranty or not.
Politics Make Strange Bedfellows
Some manufacturers like the new law, but others are not so fond of it. The car companies in favor of the change are the ones that most often find themselves on the receiving end of lemon law lawsuits. Other automakers who receive only a fraction of complaints are dismayed that they were not given a seat at the table in negotiations. Instead, critics of the law say it was written in secret by industry attorneys and lobbyists, and some legislators themselves complained about the process. The new law has also divided consumer advocacy groups and consumer attorneys, some of whom lined up with car companies on one side or the other. Some feel the law goes too far in shutting down consumer rights to file lawsuits while others feel it didn’t go far enough.
In signing AB1755 into law, Governor Newsom noted that the bill “has drawn substantive opposition from several consumer groups and the majority of automakers, who were not party to the legislation.” In his signing message, the Governor announced an agreement with the bill’s authors to introduce a new bill “early in the 2025-2026 legislative session.” The thrust of this new bill will be to make the new procedures “subject to election by a given automaker.” In other words, companies like General Motors and Ford who supported the law can sign on to the new process, while Volkswagen, Toyota, Tesla and a dozen others will likely opt to stick to the old procedure, where consumers can file a lawsuit if their vehicle is not repaired after a “reasonable number of attempts.” It remains to be seen what changes, if any, will be made to the law in the upcoming session and when they will go into effect.
Contact Nita Lemon Law Firm for Help With Your California Lemon Law Claim
Whether you love the new law or hate it, it is sure to add a new wrinkle to Lemon Law claims, with different processes required to pursue a claim depending on the manufacturer involved. This added layer of complexity makes it all the more important to secure legal representation early on from an experienced lemon law attorney, not just because the process has changed but because of the new timelines as well. Making a mistake on your own or with a lawyer who is unfamiliar with lemon law claims can leave you stuck with a lemon and no recourse under the law.
For help with lemon law claims in California, contact Nita Lemon Law Firm in Los Angeles at 213-232-5055 or statewide at 877-921-5256. You can also submit a free case evaluation request at www.nitalemonlaw.com, or email nick@nitalemonlaw.com for a fast response.
