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The following link is from our texaslemon.com’s testimonial page. It is a testimonial (positive review) of a client of ours. In the excerpt, there is a reference to “lemon law mills.” Most people are unfamiliar with the phrase, so I thought I would write a brief blog article about it.

A “lemon law mill” is a phrase that describes a law office that concentrates its practice specifically on lemon law cases in a factory-like, volume-based, automated manner. At first thought, this isn’t such a bad thing, since experience is helpful in handling lemon law cases.

The issue is when the law office focuses its attention on the number of cases settled in order to produce profit for the firm, rather than the quality of its legal

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It’s hard to believe that seven years ago, I started this blog to provide a forum to discuss information to the public about the Texas Lemon Law. As the years past, I was hoping the lemon law will adapt and change in a way that will help consumers for the better. Unfortunately, not much, in the Texas Lemon Law, has changed. Hopefully, the lemon law for the state of Texas will be more favorable in the next seven years.

A change to the Texas Lemon Law I would like to see happen in the near future include an attorney fee shifting provision that forces the manufacturer to pay for the consumer’s attorney fee. Currently, the Texas Lemon Law program provides consumers with a chance to participate in an arbitration/hearing, the attorney fee shifting provision only applies if the car manufacturer first hires an attorney to attend the hearing.

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Every state has different laws as it relates to lemon laws and defective new vehicles. Some states’ lemon law are more favorable to consumer than others. Unfortunately, in Texas, the lemon law has been heavily lobbied by care manufacturers and dealerships; and therefore, is not very favorable to consumers.

A sign that a state lemon law is helpful to consumers is if it contains an attorney fee shifting provision. An attorney fee shifting provision requires a manufacturer to pay for the consumer’s attorney fees, in the event the consumer wins the case. Often times, after buying a vehicle (the second largest purchase behind a house), most consumers do not have excessive funds to hire an attorney to seek recourse against car manufacturers.

The Texas lemon law has a “pseudo” attorney fee shifting provision. The provision is triggered during the arbitration and only if the car manufacturers hire an attorney. Unfortunately, car manufacturers abuse this provision and never obtains an attorney, instead, they bring car experts who have received legal training to the arbitration instead. Hence, the “pseudo” attorney fee shifting provision is rendered useless and if often never triggered.

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Often times, many Texas lemon law clients want to know how long a typical lemon law claim takes to adjudicate. The answer is that it varies. Sometimes, it can drag on longer than the consumer anticipates. Click here for a brief overview of the answer to this question.

There are many factors involved in determining how long a lemon law claim will take. Such factors include: (1) the facts of the case, (2) who the defendant car manufacturer is, (3) who the representing opposing counsel is, (4) the time of the year, and (5) how responsive the client/consumer is.

Next week, I will highlight the first factor involved in determining the time-frame of a typical lemon law case.

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Typically, a consumer contacts a Texas lemon law office and submits paperwork/documentation for a case evaluation regarding his/her vehicle. This case evaluation is usually free for the consumer. The submitted documentation is reviewed by an attorney, paralegal, or legal staff. Thereafter, the attorney or legal staff will discuss options (if any) and expectations with the consumer.

After the discussion with the Texas lemon law lawyer, the consumer may wish to retain the attorney for representation. The lawyer would then have the consumer review and sign a representation agreement.

A representation agreement is a contract between the consumer and the attorney. A good agreement usually outlines expectations, responsibilities, and fee arrangements. It is designed to protect both parties, in case a conflict or issue arises. Before signing a representation agreement, it is important for the consumer to read it carefully and ask questions on any terms that may be confusing or unclear.

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The statute of limitation is legalese (legal talk); it means that a plaintiff (the consumer) has a specific time-frame or deadline to file a lawsuit against a defendant. After the deadline, the consumer will lose his or her right(s) to file a lawsuit, even if the consumer has a legitimate claim/case.

The deadline to file a lawsuit is discussed in a previous blog entry found here. This post relates to when the limitation is triggered. In other words, what date does it begin to count and the clock starts ticking against the consumer.

Although not all cases are the same, under applicable federal and state Texas lemon laws, the statute of limitation usually begins on the date the vehicle was purchased. Typically, this is found on the date that is written on the purchase agreement, or sales contract. Hence, it is important to insist that the dealer writes or prints the correct date on the sales agreement.

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Question: I took my vehicle in for repairs once or twice, but feel that the the problem will reoccur soon. Do I have a case?

Answer: Generally, everyone potentially has a case. The real issue is whether the case is strong or not, whether there is likelihood for recovery in the form of any cash settlement, repurchase, or replacement,…or, not.

Under the current Texas Lemon Law, the presumption is either: 2 or more repair attempts for a serious safety issue, or 4 or more attempts for the same non-substantial defect, or the vehicle has been serviced for a cumulative of 30 days or more.

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Satisfaction surveys or questionnaires is the manufacturer’s method of receiving feedback from consumers. The car dealearship sometimes cash rebates and incentives from the manufacturer when they recieve consistent positive feedback from the manufacturer.

In addition, arguably most important, the vehicle manufacturer may use this information as evidence against the consumer during lemon law litigation. I handled a case where the client was a really nice guy, but honestly dissatified with the dealer’s handling of his defective car. He wrote a positive review (without conferring with me beforehand) because it was against his nature to be negative or critical of anyone. During the discovery phase of our lemon law suit, opposing counsel used this as one of the arguments and key evidence to try and prove that the dealer did everything right.

The important thing when answering these surveys is to be objective and honest. Extract your emotions; be professional. If the dealer was neglient or careless, state it in specificity. If you have any doubts, contact a lemon law attorney as soon as possible. Thanks to the attorney fee shifting position, the consumer usually does not have to pay the attorney fees for representation.

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Answer: I will hedge a bit and use an attorney-like response on this question. The answer to this question is “it really depends.” Some factors involved consists of: the facts of each case, what time of year it is, who the defendant car manufacturer is, who opposing counsel is, client expectations, and sometimes luck.

Each case, although similar on some level, is different. Cases that are filed near the holidays (for example, Thanksgiving or Christmas season) understandably takes longer, as employees of involved parties are more difficult to contact, interview, and obtain evidence.

Some vehicle manufacturers drag their feet and purposely take forever to respond to a claim — they have very little to lose by taking their time, their goal is to take advantange of an impatient and frustrated consumer. After a demand letter has been sent and a law suit is filed, the claim gets forwarded to an opposing attorney for the vehicle manufacturer and car dealership. Some attorneys are professional, while others like to play bulldog.

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Most new vehicles come with a standard 36,000 miles/36 months warranty, whichever occurs first. An extended warranty is intended to cover repairs beyond the standard warranty. Some extended warranty gives you coverage beyond what the standard warranty doesn’t cover; usually, coverage you most likely do not need.

In addition, if you have a new lemon vehicle, having an extended warranty is quite useless. If the service center can not fix the vehicle, then the issue is moot. Your best course of action is to contact a texas lemon law attorney as soon as possible.

If you plan on putting a lot of miles on your vehicle, so as to trigger the 36,000 mileage coverage quickly, then it might be a good idea to opt for the extended warranty.

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