How Does the Arbitration Process Work in Lemon Law Cases?

You would think that owning a new (or newer) vehicle would be pretty much smooth sailing, but sometimes you can end up with a car that is anything but easy to own. After repeated failed attempts to get your unreliable vehicle fixed, you wonder what to do next. All of the options for getting either a replacement car or a refund for what you paid for it seem time-consuming, never mind confusing. So, you’ve heard that maybe arbitration could be a good way to go. It is supposed to be a less formal and faster solution.

What’s involved?

In many states, you’re required to attempt arbitration before filing a lawsuit; in others, you can choose to go this route. You and the manufacturer present your cases to a neutral third party (the arbitrator), who then decides on your claim. The whole process typically moves much faster than a court case. If you’re wondering about costs, the lemon law arbitration process is free for consumers. Manufacturers (or manufacturers’ groups) must pay for it. While not binding for the consumer, lemon law arbitrator’s decisions are binding for vehicle manufacturers.

Wondering about your state’s laws and how to go through arbitration (and even if you should at all) can be stressful. A lemon law attorney offers expert guidance. They’ve represented clients in many hearings and can offer their expertise because they:

Know the ins and outs of your state’s specific lemon laws

Understand how to present your case effectively

Can spot potentially unethical manufacturer tactics and respond appropriately

Can help you decide whether to accept an arbitration decision or pursue further legal action

The Process

Preparing for an arbitration hearing is much easier to deal with when you don’t have to track all the steps yourself. That’s why a lemon law attorney can be an asset; an experienced lawyer can help simplify the process so you won’t have to shoulder all of the complexities. Preparation will help you present a strong case. Your attorney knows that and provides expert knowledge on assembling and presenting your claim. Your lawyer will help you prove that your vehicle’s defects have adversely affected its use, value, or safety, which could then entitle you to compensation.

Documentation is Key

Prior to considering arbitration, it is vital to get records in order that back up your claim. You’ll gather all paperwork pertaining to your vehicle’s issues, such as repair orders and correspondence with the dealership and manufacturer. Include any visual evidence of the problems, such as photos or videos. Your lawyer can assist you in figuring out whether you have all the necessary documents to support your claim, and these should be organized properly. Your attorney may discuss with you the inclusion of expert witness testimony to reinforce your case. Certified mechanics, for example, can testify about manufacturing defects.

 

What Happens During the Hearing?

During the hearing, you and your attorney will get your chance to tell your story and present your evidence. The manufacturer will have their representative there to present their side as well. While less formal than court, you should still approach this professionally and be prepared to:

Answer questions about your case. Tell the arbitrator the exact outcome you want, such as a refund or replacement vehicle.

Show all your documentation.

Allow inspection of your vehicle if requested.

State-by-State Variations

Here’s where things can get a bit complicated. While some states mandate arbitration prior to lawsuit pursuit, your state may not. Your lemon law attorney will know what your state’s requirements are and pursue your claim accordingly, and you’ll be kept informed every step of the way.

Note that laws are constantly changing, and an attorney can keep you apprised of the latest requirements. Allen Stewart, P.C. has experience representing clients in multiple states. For example, we offer extensive experience successfully representing clients from Texas in a significant number of these hearings. We also practice law in California, New York, Pennsylvania, Missouri, North Carolina, Ohio, and Arizona. Our experience serves our clients well when pursuing claims in any of these states.

Possible Outcomes

Your attorney will consider all the facts you’ve presented, your state’s lemon laws, and any federal protections, and rely on their experience and negotiating skills to help ensure that you have the best opportunity to receive a positive resolution through arbitration. There can be a few different outcomes, and your attorney will prepare you for these. The ultimate result can be that the manufacturer is required to replace the lemon vehicle or can be required to refund the entire purchase price, in addition to sales tax, finance charges, and other expenses, with a deduction for use (mileage) from when the defect was first reported to the manufacturer. Most arbitration decisions come within a few days to a few weeks after the hearing but can take longer.

How to Protect Your Rights?

As we’ve seen, while arbitration may be more informal and a decision may be provided more quickly than a lawsuit, there are hurdles and issues that are best reviewed by an attorney. It boils down to setting your goal for the compensation you believe you deserve based on your vehicle issues (with an attorney’s help) and choosing the best way to reach it. Arbitration can be one way to get there, and when you consult with your attorney, you will discover if it must be, or can be, a route you can pursue, depending on your circumstances.

Please note: Today’s lemon law cases are becoming increasingly complex due to new automotive technologies. What if your case involves new technology, like an electric vehicle (EV)? Allen Stewart, P.C. offers expert representation in lemon law cases involving the latest vehicle technologies and how evolving laws can affect your claim. We encourage anyone with problems relating to these new vehicle technologies to contact us (866-440-2460).

Trust Allen Stewart, P.C. for Expert Representation

Perhaps you thought that arbitration could be a simpler way to pursue your lemon law claim. While arbitration can be one way to resolve your claim, it is not the only way. Maybe you have even more questions than before you started looking into arbitration as an option. Plus, each state has its own strict deadlines for claims, and timing can make the difference in the outcome of your case. All of this can be a lot to process. That’s where our lemon law attorneys can help you.

If you’re on the fence about whether you need a lawyer, consider this: since vehicle manufacturers always have their legal teams ready to protect their interests, shouldn’t you have a lemon law expert in your corner? Allen Stewart, P.C. is here to help you win your lemon law case.

We understand how frustrating it can be when your vehicle’s problems make it unsafe, unusable, or otherwise not what you bargained for. The sooner we can review your case, the better your opportunity for a successful claim resolution. We offer free consultations to discuss arbitration and other ways to get you the compensation you deserve. Call Allen Stewart, P.C. today at 866-440-2460 or contact us online.