What Happens If a Manufacturer Refuses to Honor a Lemon Law Claim?

When you purchase a new, certified pre-owned, or low-mileage used vehicle, you expect it to function properly. You went into the transaction in good faith. Unfortunately, some vehicles have persistent defects that significantly impact their safety, value, or use. Some manufacturers can try to evade their responsibilities and not fix the problems. So, here’s where lemon laws come into play.

But manufacturers don’t always comply with lemon law claims, and you may find yourself stuck. How do you get your money back or a replacement vehicle?

Allen Stewart, P.C. wants to assure you that you don’t have to stand for a manufacturer’s intimidation tactics or evasion. We can help you overcome these deceptions and get compensation for your faulty vehicle.

When the Manufacturer Refuses or Delays

When a manufacturer refuses to honor your lemon law claim, you need the experience and expertise of a lemon law attorney who has dealt with these tactics before. Allen Stewart, P.C. has won many lemon law cases where we have fought back against denials, delays, and refusals, holding the manufacturer accountable. We can help you push through these obstacles to get the compensation you are due.

Documentation will be the centerpiece of your case. Once we determine that your claim is valid, we will establish in writing that the manufacturer is refusing it. We will review the specific refusal reason against your state’s lemon law provisions. State lemon laws vary on what constitutes a lemon, how many repairs must be made, and when. Comparing your claim against the exact requirements in your state will determine whether the manufacturer’s refusal has any legal merit or if they’re simply trying to avoid their obligations.

Lemon Law Attorneys and Consumer Protection Agencies

So if the manufacturer refuses your claim, even though you have documentation to back it up, what other actions can your attorney take to strengthen your case?

Filing a formal complaint with your state’s attorney general’s office creates an official record of the manufacturer’s refusal and may trigger an investigation. Contacting the Federal Trade Commission (FTC) adds another layer of documentation. While the FTC may not intervene in your specific case, they track patterns of manufacturer behavior that could indicate systemic issues deserving broader regulatory attention.

A skilled lemon law attorney can help you win your case by:

1. Guiding you on which specific agencies are most relevant to your case (state attorney general’s office, department of consumer affairs, FTC, etc.), leveraging their professional relationships and knowledge of agency procedures
2. Drafting formal complaints to these agencies that properly frame your situation within the context of relevant consumer protection laws
3. Using the filed complaints strategically as part of your overall case strategy

Many lemon law attorneys have established relationships with consumer protection agencies. They know what documentation these agencies need and how to present your case in a way that increases the likelihood of agency intervention.

Arbitration

If you want to pursue your lemon law claim, you may first have to go through the manufacturer’s or state’s arbitration process. Each state has its own rules. Arbitration provides a less formal setting than court for resolving disputes. Many manufacturers participate in programs such as the Better Business Bureau’s Auto Line Program. You and the manufacturer present your sides of the story, and an arbitrator decides the outcome. Be prepared to show repair records, correspondence with the dealer, and documentation showing how the defect substantially impairs your vehicle’s use, value, or safety. The manufacturer will explain why they believe your vehicle doesn’t qualify under lemon law provisions. While arbitration decisions are binding on manufacturers in most states, they typically aren’t binding on you if you’re unsatisfied with the outcome. Your lemon law attorney will be ready for litigation to protect your rights, should it be required.

Litigation

Legal action is the next choice if arbitration doesn’t work or if you are in a state that doesn’t require it. The majority of state lemon laws require manufacturers to pay reasonable attorney fees if you win, making legal representation more affordable.

Your attorney will file a complaint detailing how the manufacturer violated state lemon law provisions. The manufacturer will usually respond to your allegations and may file counterarguments. Both sides exchange information, such as depositions from dealership employees, manufacturer representatives, and independent mechanics who evaluated your vehicle. Your attorney will work to prove that the manufacturer did not uphold their responsibilities and that your vehicle is a lemon. Throughout this process, settlement negotiations typically continue. Many lemon law cases settle before reaching trial, as manufacturers often wish to avoid the expense and potential negative publicity associated with a court case.

Please note: If there is no settlement, Allen Stewart, P.C. will represent you in court. We have won many lemon law court cases and will fight vigorously on your behalf to win your case.

Outcomes and Possible Additional Penalties

Depending on your situation and your state’s laws, various outcomes are possible. If you win, you may be entitled to a replacement vehicle of comparable value, a refund of your purchase price (minus a reasonable allowance for use), or monetary compensation. If a manufacturer willfully refuses to comply with the provisions of the lemon law, it may also be subject to civil penalties under many state laws. If the manufacturer’s behavior was clearly wrong, these penalties can make your award much bigger.

Here are examples of manufacturer wrongdoing in lemon law cases that can increase penalties:

1. Deliberately concealing known defects:
   • Internal memos showing they knew about a systematic failure but denied warranty claims
   • Instructing dealers to “reset” error codes without fixing underlying issues
   • Destroying or hiding test results showing defects
2. Patterns of bad faith:
   • Multiple attempts to repair the same issue while claiming “no problem found.”
   • Blaming the customer’s driving habits for documented mechanical failures
   • Repeatedly replacing parts with known defective components
3. Deceptive practices:
   • Falsifying repair records to show problems were fixed when they weren’t
   • Telling customers their warranty expired when it hadn’t
   • Claiming repairs were completed when the vehicle was simply held in the shop
4. Intimidation tactics:
   • Threatening to void the warranty if customer sought second opinions
   • Making customers sign non-disclosure agreements to get repairs
   • Using aggressive litigation tactics to exhaust customer resources
5. Deliberate violation of lemon laws:
   • Refusing to buy back vehicles meeting clear lemon law criteria
   • Ignoring state-mandated timeframes for repairs
   • Denying claims without required investigation

If you have had to pay for things like towing or a rental car because of the defect, you may be able to recover those expenses, as well.

Following Resolution

Whether through settlement, arbitration, or litigation, several steps remain after your claim is resolved. Your attorney will help you by reviewing any settlement agreement with you before you sign it to ensure the agreement addresses all your concerns and doesn’t contain unexpected restrictions. If you receive a replacement vehicle, thoroughly document its condition upon delivery and remain vigilant about any potential defects. With a refund, verify that all appropriate costs are included according to your state’s provisions. Finally, consider reporting the resolution to the same consumer protection agencies you contacted initially (if you did), helping them track compliance patterns and potentially assisting other consumers facing similar situations.

Trust Allen Stewart, P.C. to Protect Your Rights in Lemon Law Cases

Pursuing a typical lemon law claim is enough of a task. When the manufacturer does something deliberately dishonest to keep you from getting fair compensation, you need an experienced lemon law attorney on your side. Allen Stewart, P.C., has won many lemon law cases in Texas, California, and across the country. We’re also ready to defend your rights in cases that involve the latest automotive technology (EVs and hybrids). We know the tactics that manufacturers may use to keep from fulfilling a lemon law claim. Our attorneys will aggressively fight for you, whether we do it through a settlement, arbitration, or in court.

You may wonder if you need a lawyer. With all of the potential risks that a manufacturer can pose with wrongful actions, you need an attorney who can anticipate and fight back against them. Allen Stewart, P.C. is not intimidated and will work diligently to win your case.

Don’t wait to contact our office. It’s vital to get your case reviewed in our free consultation, and if we see that you have a viable claim, we will consult on your next steps and represent you should you wish to move forward. Thanks to federal law, our clients pay nothing out of pocket. Call us now: 866-440-2460 or contact us online.