New California Lemon Law Changes In Effect Starting April 1, 2024

Introduction

In 2024, California passed Assembly Bill 1755 (AB 1755), a significant reform to the state's Lemon Law aimed at streamlining the process for consumers seeking restitution or replacement of defective vehicles. This reform introduces new requirements for litigation, mandatory mediation, and stricter timelines for filing claims, effective in two phases starting January 1 and April 1, 2025.

Pre-Suit Notice Requirement

The primary change introduced by the new law requires Consumers to provide written notice to the manufacturer at least 30 days before filing a lawsuit seeking civil penalties.

The notice must include:

• The consumer’s name

• Vehicle Identification Number (VIN)

• Summary of the repair history and vehicle issues

• Request for repurchase or replacement

After receiving the notice, the manufacturer has 30 days to offer to repurchase the vehicle, or they can face a lawsuit being filed that seeks not only repurchase, but civil penalties, which can be up to 2x the amount entitled under the repurchase.

If the manufacturer does offer the repurchase the vehicle within the 30 day deadline, they have to complete the repurchase and settlement process within 60 days of the pre-suit request.

The purpose of the pre-suit notice requirement is to encourage pre-suit resolution of lemon claims and provide more expedient relief for consumers. 

The New Statute of Limitations – Deadline to file a Lemon Law Lawsuit

The new laws also outline a new statute of limitations for lemon law cases, which is the deadline to file a lawsuit. A lemon lawsuit must be filed within one year after the expiration of the applicable express warranty for the vehicle. However, the lawsuit cannot be filed more than six years after the vehicle’s original delivery date, unless limited tolling provisions apply. For example, if a vehicle is purchased on January 1, 2020, with a 5-year warranty that expires on January 1, 2025, the consumer must file a lawsuit by January 1, 2026.

New Post Suit Requirements - Mandatory Mediation, Initial Disclosures, Etc.

Once a lawsuit is filed following the 30 day pre-suit notice period expires, the new law institutes several requirements and deadlines that are aimed to facilitate early exchange of information with sanctions for noncompliance, limitation on depositions and mandatory mediation to encourage settlement.

Initial disclosures by both the Consumer and Manufacturer are required within 60 days after the filing of the answer or other responsive pleading, which must include, among other items and information, repair orders, warranties and pre-suit communications.

Next, depositions of both the Consumer and a representative from the Manufacturer are allowed, but are limited to two hours. Other than initial disclosures and deposition, no other discovery is permitted until mediation is completed.

Parties are required to schedule mediation within 90 days after filing an answer or responsive pleading, and such medication must occur within 150 days. 

How To Approach New Lemon Laws

The new California Lemon Law requirements are numerous, and having an attorney who has extensive lemon law experience is critical for a successful resolution of your lemon law problem.  Attorney Patrick Raue has years of lemon law experience, including completing lemon law trials across California and defending auto manufacturers in lemon law cases.  The best part is the car manufacturer pays your attorney’s fees, so it costs you nothing to hire Raue Law for your Lemon Law case.   Contact Raue Law today for a free consultation.