If you’ve been dealing with a car that has a major problem, you may feel like you’re running out of options. Is this happening to you?
You’ve taken the vehicle in for repairs multiple times, and the dealer can’t fix it. It has been out of service for weeks, and you wonder, is there any end in sight, where you get out from under this nightmare, and start over?
Most people have heard about lemon laws, and how these protect people from shouldering the burden of a faulty vehicle (within prescribed rules and limits that vary by state). Lemon law attorneys help people win compensation for their malfunctioning vehicles, so consumers can move on from owning a failing or dangerous car.
There’s one potential fly in the ointment, at least from the consumer’s point of view: affording a lawyer so you can take on the manufacturer and win.
We’re here to tell you that you do not have to worry about that. There are laws and procedures in place to ensure you don’t pay any legal costs upfront, and the manufacturer not only pays you compensation, but also pays the lemon law attorney when you win your case.
Here’s how it works.
How “No Win, No Fee” Agreements Guide the Lemon Law Process
Most lemon law attorneys work on a contingency fee basis, so you pay them nothing upfront to represent you against the manufacturer.
Contingency Fee Defined Here’s what “contingency” means in regard to lemon law cases:
You don’t pay the lawyer anything upfront. If you don’t win, you owe the lawyer nothing for their legal services. Their payment depends on successfully resolving your case against the manufacturer. That’s because if you win, the manufacturer pays the lawyer. You don’t pay.
For more information on arbitration and other frequently asked lemon law questions, click here.
Lemon Law Fee-Shifting The manufacturer is responsible for paying your lemon law attorney’s fees. This is tightly bound to winning the lemon law case. Most state lemon laws, and the federal Magnuson-Moss Warranty Act (sometimes referred to as the federal lemon law, although it covers other consumer products) require the manufacturer to pay the consumer’s legal fees, in addition to the remedy (your compensation), which can be, according to most state laws, a refund or replacement vehicle.
Note these two possibilities:
- You don’t pay the lawyer upfront, and when you win they bill the manufacturer for their fees for representing you.
- Your lawyer takes a percentage of your compensation, agreed to in your attorney-client agreement. You might ask why would a lawyer have this percentage stipulation; how could this ever benefit the client?
One way that it could benefit the client is in settlement talks. The attorney might agree to reduce their percentage to secure a larger overall settlement, which benefits client and attorney. It also ensures the attorney is paid promptly in the event the manufacturer delays or disputes payment.
It is up to you which arrangement you select; you may wish to interview several attorneys to explore their fee arrangements.
Ask this question of your lemon law attorney: “Will you seek your fees from the manufacturer separately, or do you take a percentage of my settlement?” Again, it is your choice; many people choose to find an attorney who works on a “no cost to you” basis, and will not take a percentage of your compensation.
Are you looking for an experienced lemon law attorney who can leverage both state and federal law in your favor, if necessary, to hold the manufacturer accountable? Call Allen Stewart, P.C. at 866-440-2460 or contact us online.
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Signing an Attorney-Client Agreement
You will sign an agreement with the attorney that outlines what we’ve just covered, plus additional fee and cost-related provisions.
- Contingency Fees
The agreement will clearly outline the fee structure, including the contingency percentage (if applicable).
Related Costs: There will also be language in the agreement that covers how costs are handled, to ensure transparency. Most lemon law attorneys cover out-of-pocket costs like court fees and expert witnesses upfront, then seek reimbursement from the manufacturer if you win—meaning you’re not initially responsible. However, some agreements might require you to pay these costs as they come up, with reimbursement coming later if successful. The exact answer lies in the specific language of your agreement.
- How Fees are Determined
Fees are based on the reasonable hours the attorney worked at a reasonable hourly rate, which the court approves. This is standard in lemon law cases and ensures the manufacturer pays a fair amount; not a percentage of your recovery.
Verify the wording used to make this point clear by going over your agreement.
Most lemon law cases settle out of court. Settlements can be negotiated in multiple ways, and can result in cash, refunds, or replacement vehicles. If your lawyer negotiates a settlement in a lemon law case, the manufacturer typically still pays your lawyer’s legal fees, even though the case didn’t go to court. The same rules apply as if you had “won” in a trial.
The law is designed to encourage manufacturers to settle lemon law cases early. By making them responsible for your attorney fees—whether through a settlement or a court win—it reduces their incentive to drag things out to trial. You still come out ahead, and they cover the costs.
One thing to keep in mind: the settlement terms need to explicitly state that the manufacturer will pay your lawyer’s fees. While this is the general rule, details can vary slightly depending on your state’s laws or the specifics of your case.
Fee Transparency Throughout the Process, Win or Lose
Even if the case doesn’t succeed, the agreement with the lemon law attorney still should align with the initial no-upfront-costs promise:
If you don’t win, you won’t owe any attorney fees. In most cases, your agreement that you sign with the attorney will be structured so you also won’t be responsible for any costs. The attorney’s goal is to make working with them risk-free for you.
Lemon laws are confusing. Read our guide to the lemon law complaint process.
Summarizing the Benefits
In short, the manufacturer covers the attorney fees and costs when you win, and if you don’t win, you will not pay the attorney. This setup lets you pursue your case without any financial worry.
To recap: Ensure in the agreement that the lemon law attorney’s fee structure is contingency-based, meaning you don’t pay upfront fees. If you win, the manufacturer pays your attorney fees and costs directly, so your compensation stays untouched.
If you don’t win, you should not owe the lawyer for court filing fees and other additional fees, but double-check your agreement with the attorney for specifics on that.
Why You Need a Lemon Law Lawyer
Each state has different lemon laws, deadlines and other rules that are easy to lose track of. You will hopefully, at most, ever have to deal with a lemon law situation once in your life. A lemon law attorney works on these cases every day; they specialize in helping consumers get compensation for vehicles with substantial defects.
It’s not advisable to fight a manufacturer yourself. They are not motivated to help you, and even if you win, your compensation may be a lot less than you might have secured through a lemon law attorney’s negotiating skill and experience.
Allen Stewart, P.C. Provides Expert Lemon Law Representation
Now that you know that you won’t pay any upfront fees for a lemon law attorney, the next step is finding one you can trust. Allen Stewart, P.C. provides the expertise and experience you need to win your lemon law case. We have gained top compensation for clients across the country, and are known as leading lemon law attorneys in various states, including California, Texas, and New York. Ensure your case is handled by an attorney who will fight aggressively for you; that’s what you can count on with Allen Stewart, P.C.
Please know that the manufacturer may evade, dismiss, or try to reduce your claim’s significance to keep from paying compensation. Allen Stewart, P.C. anticipates these challenges and is experienced at countering them in our clients’ favor. Our experience will protect your rights so you don’t have to stand alone against the manufacturer.
Take advantage of our free case evaluation. Call us at 866-440-2460 or contact us online. Thanks to federal law, our clients pay nothing out of pocket, so contact us now for a free consultation.