Often times, when our office files a lawsuit against a car manufacturer (such as Chrysler, Ford, or General Motors) and/or dealerships; we cite to both state and federal lemon laws. Both laws provide consumers with limited protection and recourse against the wrongdoer. The federal lemon law applies to all 50 states and the District of Columbia; while the Texas lemon law only applies to vehicles that generally has been purchased in the state of Texas.
One key difference between the federal Magnuson Moss Act and the Texas Lemon Law (found in the Texas Occupations Code and Texas Transportation Code) is the attorney fee shifting provision.
The federal law allows the prevailing consumer’s attorney to recover attorney fees and costs from the defendant (vehicle manufacturer/dealer). In other words, if your new car, truck, boat, motorhome, or recreational vehicle fails you multiple times and you win or settle your case, then manufacturers (such as Honda, Chrysler, Toyota, Kia, Coachmen, Gulfstream, Newmar, or Vogue) will have to pay for your attorney fees.