Beyond Lemon Law: Settling Lemon Law Cases

Veteran lemon law lawyer Dani K. Liblang recently spoke at the Institute of Continuing Legal Education. Find out what she believes makes an auto defect claim ripe for settlement.

Recently, the Institute of Continuing Legal Education (ICLE) asked Attorney Dani K. Liblang of The Liblang Law Firm, P.C., in Birmingham, Michigan, to share her expertise about consumer protection laws involving vehicles. She was featured as the plaintiff’s attorney in a panel discussion “Beyond Lemon Law: Consumer Auto Transactions” (subscription required). Dani and the panel reviewed the complicated statutes and legal processes that go into a Lemon Law claim.

Previous blogs introduced the seminar, explained what makes a strong lemon law case, and described how the discovery process shapes a case. Now find out how an experienced consumer protection lawyer settles a lemon law case.

A recent survey says 95% of all lawsuits settle without a trial. This is especially true in lemon law cases.

Fee-Shifting Statutes Encourage Settlement

Many of the Michigan laws connected to automotive lemon law include “fee-shifting statutes.” These laws say that if consumers win their lawsuits, the dealer, manufacturer, or other defendant is responsible for their attorney fees. You could be entitled to attorney fees if your claim is based on:

• Michigan Lemon Law
  
• Odometer fraud
  
• Damage prior to sale
  
• Finance fraud
  
• Certain federal laws
  

If an automotive defendant loses a case at trial, it could be facing over $50,000 in attorney fees and costs. Instead, most dealers and manufacturers are interested in settling lemon law cases early to avoid additional attorney fees.

Many dealerships also maintain “Customer Complaint Defense” insurance. These policies limit attorney fees to $10-25,000. So dealer defendants are motivated to settle before they exceed that limit.

Limits on Damages Make Litigation Unnecessary

Many lemon law cases also settle because there isn’t a lot to fight over. Lemon law statutes only allow economic damages, including replacement costs, repair costs, and certain other documented expenses. They do not allow for pain and suffering, punitive damages, or other kinds of damages that can be difficult to measure. The costs of the case are relatively cut and dry.

Once the defect is established through an independent vehicle inspection, those limited damages allow for settlement to happen more quickly. Your lemon law lawyer and the defense attorneys will be able to calculate the appropriate damage awards without the need for a judge or jury.

An Experienced Lemon Law Lawyer Makes a Difference

One of the biggest hurdles to settling your lemon law case is an inexperienced attorney. If you hire a lawyer who doesn’t understand how to use the lemon law statutes to your benefit, you could be in for a long ride. Attorney Dani K. Liblang has over 30 years’ experience in lemon law. She knows how to get a quick settlement for you and your family. Contact The Liblang Law Firm, PC, in Birmingham, Michigan, for a free consultation today.